Bank FD Sahi Hai

With Finance Minister Nirmala Sitharaman urging public sector banks to boost deposit growth, a shift from debt mutual funds to bank fixed deposits (FDs) is becoming increasingly attractive. In this video, Debashis Basu explains why bank FDs are now more appealing than ever, thanks to recent tax changes and the inherent safety they offer. Discover how these factors could lead to a significant inflow of funds into bank deposits and what needs to be done to encourage this trend.

#fixeddeposit #debashisbasu #moneylife

[Oceansta]

Mr. Basu is absolutely right. FD should be taxed only on withdrawal. I always thought this is obvious and rational till my CA told me the government of India doesn't think so. It makes no sense to tax me on something which I have not yet gained in hand and am in no position to capitalise. That's like prospective taxation. Imagine getting taxed on your property in the same way arguing that the value of your real estate is appreciating every year even if you are not yet selling it. It's ridiculous.

[mahesh]

until they remove bank deposits from income tax, it will be like this.

[ganeshpondy]

Increase fixed deposit interest rate or remove TDS

[sundarrajn]

Govt is punishing savers with tax. So this will continue to worsen.

[Random-pksl]

Government will squeeze every drop of money from small investors: tds, etc. Their friends meanwhile get 1000s crores loan written off..

[ksssku]

Till the government doesn't come out & publicly say that "now Mutual Fund Sahi Nahi Hai!", I will continue investing in Equity Mutual Funds. I will not make the mistake of investing in Bank FDs just because Banks need money to loan it out to others. I will invest in Bank FDs if & when the interest rates rise to above 9.5% per annum. Till then Equity Mutual Fund only Sahi Hai!😊

[Mr_Sylance]

Tax terrorism + Charges terrorism = ↘Deposit + ↘Investment

[suhasbhide]

Bank interest must be exempted from income-tax

[adrianfernandes]

During UPA government, we were getting 9.5% interest rate. Now it's 7

[ajsujit]

It would really help if govt stops taxing accrued interest. Taxes should only be applicable only when interest comes into savings/current account from FD.

[newbegining]

Where’s the incentive for common man to put money in bank deposits…low returns, less than inflation, taxed heavily then it gets lent to useless corporates they fail and written off . Rather people are willing to take risks with mutual funds, equities

[arche]

People only kept money in FD for 80C. With new tax regime no incentive for people to lock into a 5 year FD.

[atul]

If bank deposit insurance is further increased from 5 lacs to 20 lacs, people may invest in FDs.

[kishoreghosh]

Very insightful. If the bank FDs become similar to NSC/KVP, i.e. no TDS then I think bank deposits will grow. And if the FDs are taxed only on redemption then banks will see huge surge of deposits and the issue will be resolved.

[JourneyofSenses]

reduce salary of top management, reduce infra cost of bank

[davidkrupadanam]

Banks should pay atleast 12% interest on FDs as the real inflation is 7%and tax TDS collected on redemption

[pchako]

I am a senior citizen staying in a small town in Odisha. I have a FD in a nationalized public sector bank in Asansol (WB). In May this year, I contacted the branch office of the bank in my town for details of my tax deductions pertaining to my FD for filing my IT Returns. I was promptly told to contact my original bank in Asansol. I sent them email requests, but got no response. Finally, I went to my bank in Asansol by changing two trains, only to be told to come back in June ! Had I invested my money in a mutual fund or even in LIC, I would have been spared this harassment.

[mvrk]

Well articulated video.
No one brought banks to this situation. It’s all sell inflicted problems by banks.
First they should stop harassing their employees to sell MFs and ULIPs.

[SanjaySingh-kuxx]

Congratulations Mr Debasis Basu for highlighying an issue affecting everyone but most customers of banks were not even aware of it..

[bratinghosh]

The tax on FD interest has to be aligned with LTCG tax, or else nobody will do FD and pay 30% + tax on interest earned.