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FMPs over FDs

For someone in the 20 per cent tax bracket, FMPs can be more beneficial than bank FDs

How much return can I expect from a 1-year or a 370-day FMP? I currently fall in the 20 per cent tax bracket. I want to explore FMPs as an option if post-tax returns are better than those of FDs.
-Manthan Bhalolia

The FMPs on offer right now will yield 9-9.5 per cent returns. For someone in the 20 per cent tax bracket, FMPs of over 365 days will qualify for 10 per cent flat capital gains tax or 20 per cent after indexation. Hence, they will be more beneficial than FDs and will yield higher returns.





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