Sweden Finance

May 15 2018

What is the difference between debt and equity products?

Hi,
You should mention about the insurance cover in FDs (up to Rs.1 lac per depositor per bank).
So, even if a bank fails (worst case), there is a high chance of getting back the money in FD.

That s a good point Vinay thanks for bringing it up. If a person splits their deposits across banks, are all the deposits covered with the insurance?

yes both accounts are separately insured if both banks fail. alternatively you can have separate accounts for each of your family member or several joint accounts of more than one individual even if they are in the same branch as long as the order of their names appear in a different order say ABC, ACB, BAC, CBAetc. each would be separately insured for a balance upto 1 lakh!

please correct me if I am wrong.

Thanks Ramesh your explanation sounds correct. Here is the link to the RBI guideline on this:

Thanks for shearing the good things and best knowledge with me thatnks again for that .

first of all i l like to say that post was awsmmmm..now cming to my doubts..what are SIP and SWP?also wud like to know what are the taxes implement on the debt mutual fund?as am a newcomer to whole of this am so eager to learn about all waiting for answer thanks

Thank you Mukesh.

SIP is Systematic Investment Plan which means you invest a fixed amount every month. SWP is Systematic Withdrawal Plan which means you redeem some of your investments every month and thus earn a regular income.

thanks manshu,actually am about to invest a lumsum amt very sOon so am studying all about these funds n all..on the way whIle i was studying about stocks n all i also read about RD and FD am jus so shocked to see how govt make us fOol.In FD if your interest exceeds 10,000 annually there is a 10% TDS but on the other hand they say if your going for RD you will get everything as FD, (which is also not true) and there is no TDS now the point is whenever we get out amt after maturity period trust me if u deposited a lumsum in RD yoi will find yourself already in 30 or 40 bracket of slab in FD u pay 10% TDS and then remaining 20% cut acc to slab and in RD you dnt have to pay TDS but 30% acc to slab also there is less interest in RD as compared to FD .manshu see i know thats aload to ask,but i found thIs blog pretty useful so jus waitin fo ur reply .

I read your comment a few times but I m not sure what the question is. Yes, you have to pay tax at 30% in both these cases, there is no way to avoid that if that s what you are asking.

does SIP and SWP also be used in deposits like FD and RD. I mean they say if you have a FD then there is a provision to get the interest on quaterly basis not mnthly..so is there anythIng that can give me income monthly?

Not on a FD as far as I know.

yes you are right.i was asking about thOse two cases,we have to pay that 30%.Thanks manshu for replying my each query

hey manshu am back with anothr doubt .suppose if a senior citizen deposit 25lacs in an account and the bank has to pay 10% intrst on it for a year,now coz hes a senior he dsnt have to pay 10%TDS though his intrst will exceed 10,000.Also according to senior slab he dsnt have to pay incOme tax coz hIs annually incOme will 2.5lacs(if the FD intrst is the only income source) now i have two qustns.First qustn is am i right with my statistics?and the second is Does he has to pay income tax return? .ya i said that his annual income is 2.5lacs and according to slab he dsnt have to pay income tax return but does he has to pay return? ..manshu plzzzzzzz answr these two qustns as i badly need your response thanks

i meant if a senior deppsit those 25lacs in FD..

if his annual income is 25lacs by FD source which is the only source of income for him and according to slab he dsnt have to pay income tax..does he has to pay income tax return?**** plz answer this manshu

very good explained

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