Fixed deposits are one of the most popular low-risk investment avenues with the stable returns. They’re at the cornerstone of investment portfolios of the elderly, and ground and balance portfolios of the young. With a fan base as ardent as the one that fixed deposits enjoy, it’s interesting to see whether or not Budget 2019 will bring about a change in the returns that this instrument has to offer.

External Benchmark System

There’s a lot of buzz around the external benchmark system that is to be implemented from April 1, 2019. The biggest takeaway of this system is that financial institutions will have to shift from an internal benchmark system to an external one. The key benefit however, comes to borrowers, and not to investors. The shift is aimed at facilitating any change in rate of borrowing, to customers quicker than earlier. As a result, it’s safe to say that while FD interest rates increased steadily in 2018, especially in the second half of the year, 2019 is likely to be more of the same, without any rapid increase in FD rates.

This means that if you’re looking to invest in FDs, it’s a safe bet to do so right now instead of waiting and losing out on interest in the process. In the toss-up between bank and company FDs, be sure to choose the latter for higher FD rates. Consider Bajaj Finance Fixed Deposit. Here, you can earn an interest rate of 8.75% that can go up to 9.10%, with increased rates upon renewal too.

Which Budget 2019 Developments May Affect Your FD Investment?

With so many changes underway, here’s a look at the key developments that may affect your FD investments:

Change In Tax Slabs:Speculation suggests that the current government, through this year’s Union Budget, is likely to increase the basic tax exemption limit, by way of tax slabs. You may hence, be able to make greater use of Forms 15G/15H to prevent TDS deductions.

Increase In Section 80C Exemption: Currently, Section 80C of the Income Tax Act allows a deduction of Rs. 1.5 lakh, basis the investment amount. However, experts are of the opinion that the government is likely to raise this limit. This means you’ll be able to claim a greater amount as a deduction under this section, thereby reducing your taxable income.

If you are looking to invest in a safe investment avenue, with high credibility and safety ratings, Bajaj Finance Fixed Deposits are the perfect investment avenue for you. Make sure you allocate a significant portion of your investment portfolio to Bajaj Finance FDs, especially with speculations about market volatilities impacting all investments this year.

If you’re unsure on what you can gain, always check the net returns using the FD interest calculator. Bajaj Finance offers this facility to you on its website, in addition to benefits such as an extra 0.25% FD rate on renewal.