6 Important Things to Know Before You Invest in FD

Fixed Deposits or FD are a popular investment because it promises safe and secure returns. In the last few years, there has been an attractive increase in the interest rates of FDs which have added on to their popularity. Almost all banks offer FDs and some even offer online FDs but before moving with your decision, it is very important that you know few important things.

In this post, we have put together 6 very important things to consider before investing in a Fixed Deposit to ensure healthy returns and lowest risks.

Decide on the Tenure

Tenure is one of the most important factors to consider. You have the liberty of making a fixed deposit for any tenure you wish to ranging from a year or two to eight to ten years. Calculate the time when you might be needing the money and accordingly decide on what tenure you wish to go for because if you withdraw the money before your FD matures, you will not get the same rate of interest. Depending upon the requirement of money in future, you can always plan your FDs. Also go for LIC FD calculators, FD calculators etc. to help you decide better.

Study and Compare Different Banks

Different banks offer different rates of interests on FDs. Therefore, it is very important for you to study different FD interest rates 2018 offered by different banks for a particular tenure for which you want to invest your surplus funds. This is important so that you know which bank is offering the best deal which can get you maximum returns. You can use the FD calculator to reach on to a conclusion.

The More the Better

Do not invest all your money in one fixed deposit. Rather invest it in different banks by splitting the amount into different parts. This would save you from breaking the one big FD at time of need or emergency as you can break one of the FDs by paying the premature penalty on a smaller amount. Therefore, all your other FDs will stay secure and will get you best benefits at the time of maturity.

Tax Saving Fixed Deposit

If you don’t wish to pay any tax on your earnings from FD then you can opt for tax saving FD. This kind of FD comes with a lock in period of 5 years. Therefore, for 5 years you cannot break your FD. And in case, you happen to break your tax saving FD before maturity then you will not be able to enjoy the benefits of tax deduction on your investment. Investing in this type of FD is safe only when you are very sure that you will not need to break your FD before maturity. You can use tax saver FD calculator to calculate your earnings.

You may be interested to read: Important Points for Investing in Fixed Deposits

Premature Withdrawals Attract Penalty

If there is a financial emergency and you break your fixed deposit before maturity then you are subject to pay some penalty for premature withdrawals. Therefore, always be very sure while you withdraw money before maturity because not only you will have to pay the penalty but the interest rates might also vary on your FD.

Tax on FDs

Another important thing that you must know is that whatever interest you will earn on your fixed deposit, it will be liable for tax payment. But this will again depend upon the tax bracket you will fall into.


GST Applicable on Freelancers, Service Providers, YouTubers, Bloggers in India

After the announcement of GST, all the service providers, freelancers, youtubers and bloggers will have to pay 18% GST. Impact of GST on bloggers, freelancers etc. has been explained in this post. We have covered everyone starting from freelance GST India to GST for Amazon affiliates, GST blog, GST freelance export, PayPal freelance GST, GST for Adsense etc. to give a clear picture of the situation.

GST on Service Providers, Bloggers, Freelancers, Youtubers Within India

They will have to apply 18% GST on their services which they will be charging their clients and will then submit to the Government.

  • Intra- State

There will be two components of GST: CGST (9%) and SGST (9%)

Exemption: If yearly turnover is less than 20 lakh then GST registration is not mandatory. This limit is 10 lakh for Arunachal Pradesh, Assam, J & K, Manipur, Sikkim, Mizoram, Nagaland, Meghalaya, Tripura, Himachal Pradesh, Uttarakhand.

  • Inter- State

Single component of GST will be there: IGST (18%)

Exemption: If yearly turnover is less than 20 lakh then GST registration is not mandatory. This limit is 10 lakh for Arunachal Pradesh, Assam, J & K, Manipur, Sikkim, Mizoram, Nagaland, Meghalaya, Tripura, Himachal Pradesh, Uttarakhand.

GST on Service Providers, Bloggers, Freelancers, Youtubers Outside India

In this case, 0% GST will be applicable on the services. But GST registration will be required if the turnover is above 20 lakhs.

There are two ways in which services can be exported outside India:

  • Charging IGST on export services and then claim refund
  • Without payment of IGST on export services by using LUT (Letter of Undertaking)

Other GST Related Formats


GST Invoice Format in Excel to Sell Goods on MRP Including Taxes

There are various kinds of GST tax invoice formats available. There is GST service invoice format and there is also GST retail invoice format. If you are selling your goods that come with predefine MRP with inclusive of taxes then in that scenario you need to have GST Invoice Format for selling goods on MRP inclusive of taxes.

We have created these formats for GST invoice for service providers and retail stores based on GST tax invoice rules formats to ensure that all the important elements are included in the format as mentioned by the department. Follow these GST invoice formats in Excel in India for hassle free working.

Click on the GST tax invoice in Excel free download to have professionally drafted GST Invoice Format for Selling Goods on MRP Inclusive of Taxes in MS Excel file. You can customize it and print it for easy usage.


15 Important Points to Consider While Buying Insurance Plan

Buying a term insurance is an important decision and therefore, there are various important points to keep in consideration before freezing any particular cover. But if you have no idea how to go about taking this significant decision then you are at the right place.

This is a comprehensive term insurance buying tips. All important things to know before buying a term insurance have been included in this post which makes it an easier thing for any person. If you don’t know what to look for when buying term life insurance then read on the important things to check before buying a term plan.

We have included some essential points that must always be considered:

The sooner, the better

The earlier you purchase the policy, more profitable it is because with passing of time, not only the premium amount will increase but if you have some disease then getting a policy will become more challenging.

Keep the term till the age of retirement

When you are young, you have to shoulder more financial responsibilities and by your age of retirement, these responsibilities reduce. Therefore, the need for bigger cover also decreases as you are no more the significant contributor to your family income.

Regular Vs. Single premium policies

It is always better to opt for regular premium policies, the best being yearly premium. The agent will try and convince you to go with single premium but it doesn’t make any sense, so don’t go with it.

Increase in premium is good

Sometimes you are asked to pay an extra premium because you are in the high risk category. Some of us might delay the decision or simply opt out but it is not a good idea. The best thing is to pay the higher premium which is actually quite fair if you look at it from the perspective of the insurance company.

“Per Day Premium” are not good

Per Day Premium may sound pocket friendly to you because that is how it is advertised but should be avoided because it is mostly applicable on a specific age bracket and comes with a limited tenure. It is nothing but a marketing gimmick by the insurance companies.

Small Insurance Cover is not a good idea

If you are planning to go with 10 or 20 lacs cover then it is too small a cover. You must go with higher cover but don’t think that 1 crore is good enough. You must go with the highest values depending upon the amount of premium you can afford.

Consider Claim Settlement Ratio of Insurance Company

This is a very important point to consider. You can have a look at the data of claim settlement ratio because mostly the private insurance companies have small claim settlement ratio compared to that of PSUs.

Inclusions of Insurance Policy

It is normally seen that most of the people don’t even study what are the key clauses of the policy they are purchasing. Make sure that you take some time out and read them all thoroughly to know where you are heading.

Exclusions of insurance policy

You must also study this important point because if you miss out on these then the whole purpose of having an insurance policy gets defeated.

Reveal if you are a smoker or alcoholic

Many of us choose to hide if we are into smoking or consuming alcohol but the right thing to do is to reveal it because if you hide it, you are actually breaching the contract and there are chances of your claim getting rejected at the final stage.

Share your Family’s Health History

It is equally important to share your family’s health history. Some of us hide it thinking that it will affect our premium but in the long run, it helps us.

Share your Health Conditions

If you have any health issues then you must share the same. Especially if you have undergone some surgery or operation, that must always be shared with the insurance company.

Basic version of term insurance is the best

Though markets have various kinds of term plans these days but going with the basic plan which pays the lumpsum at the time of death is the best pick.

Check the policy papers

Once you get the policy papers in your hands, make sure that you check them for the smallest of the details to make sure that everything on the records is as it was discussed. If there is any error, make sure that you reach out to the company and have it corrected.

Share with your family

You must always share it with your family that you have bought an insurance policy so that at the time of need, they can use it.


Internal Audit Report Format in Word – Audit Report Sample Template

Internal Audit Report is to be submitted by the internal auditor of the company which include the auditing findings of the company. The audit report of the company is a significant aspect which throws light on any kind of incompliance with the regulations that are need to be kept in mind. It also highlights the aspects which need to be improved.

Use the sample for internal audit report of a company. This draft for internal audit report of company can be downloaded and used by different company. It also works as internal audit report format for manufacturing company. With this Internal audit report sample in Word format, internal audit report for any company can be designed.