Fixed Deposit: By making FD in the name of mother instead of wife, you will get many benefits along with high interest..

Fixed Deposit: Most people like to invest in fixed deposits because they give fixed returns and your investment amount is safe. But if you want to get more returns on fixed deposits, then there is a way for this too. Often people get FD done in their wife's name to save tax. If you want to get maximum return on FD, then doing fixed deposit in the name of your mother instead of your wife can prove to be a better way.

By getting FD done in the name of your mother, you can get many other benefits along with higher interest. Let us tell you today about the benefits of getting FD done in the name of the mother.

Benefit of Higher Interest

You can save tax by getting FD done in your wife's name, but keep in mind that you will get the same interest on it as you would get if you got FD done in your name. But if you do FD in the name of your mother, then you can earn more interest on it. But pay special attention to the fact that if your mother is 60 years of age or older, that is, she is a senior citizen, then only you can get the benefit of 0.50 percent more return by making FD in her name.

On the other hand, if your mother is 80 years of age or older, that is, she is a super senior citizen, then you can get 0.75 to 0.80 percent more interest. For higher returns, you can make FD in the name of your mother or father. Senior citizens get higher returns on FD.

The benefit of exemption in TDS limit

Let us tell you that TDS (Tax Deducted at Source) is deducted from the income from FD. If the interest received from FD in a financial year is more than Rs 40,000, then you will have to pay a TDS of 10%. But for senior citizens, this limit is Rs 50,000.

You can also reduce your tax liability.

If you invest in FD in your name, then the income from it is added to your income. This means that you may have to pay more tax. Therefore, if you make an FD in your mother's name, you will not only get higher returns but you can also save your tax in this way.

If your mother is a senior citizen, and she has no other income or she falls in the lower tax bracket, then you can get all these benefits by making an FD in her name. In most families, women either fall in the lower tax bracket or they are homemakers. Therefore, there is no tax liability on them.

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