FD is still the favorite investment option of Indians. It is a traditional investment, in which the risk is very low. From small to big banks to NBFCs, all provide FD facility to their customers. Apart from this, corporate FD is also in vogue. However, the interest rate in FD is low. Therefore, while investing for a long term, keep in mind that the return you get should be more than the inflation rate, otherwise there will be no benefit from the investment. 

TDS is levied on FD interest

Customers have to pay TDS on the interest received from fixed deposits i.e. FD. In such a case, the income from FD will be added to your total income. In such a case, you will have to pay more tax. But if you make an FD in the name of your wife, then you can save this tax.

If you make FD in the name of your wife, you will benefit

Most women either fall in the lower tax bracket or they are housewives. Housewives are not liable to pay any kind of tax. In such a situation, if you make an FD in the name of your wife, you will be saved from paying TDS. Along with this, you can also avoid paying more tax.

When is TDS deducted

If the interest earned from FD is more than Rs 40,000 in a financial year, then you will have to pay 10 percent TDS. If your wife's income is less, then she can avoid TDS payment by filling Form 15G. If you make a joint FD with your wife and make your wife the first holder, then you can also avoid TDS as well as higher tax payment.