hi
I have just invested 13 lacs in Fixed Deposit(FD) for 5 year. My father has invested this amount in his name because he is a senior citizen and retired employee of a bank because of which he is getting 1.5% more interest which comes to total of 10.35 % per year. Also, he does not have to pay TDS on this FD because his income does not exceed the tax bracket. So I get benefit of 10.35% interest as a full without further taxes.
And I am the nominee for this FD and this FD is cumulative. Interest gets added to the amount without withdrawal.
I have two questions here,
1. I am not in need of this money for another 5 years. I have also thought of other options like putting in mutual fund MIP plan like reliance MIP but not sure whether the returns from MIP will beat my existing return(which is 10.35%) after calculating taxes on MIP.
Same goes with FMP(Fixed maturity plan)
Putting in good index fund also does not look like good option because 5 year is not so good tenure for investment into stocks…
any other suggestions…
2. After 3 years if my father returns this money to me in full will it create any problem from tax point of view ?
thanks!