September 22, 2024

A franchise is a type of license that grants a franchisee access to a franchisor’s proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor’s business name. In exchange for acquiring a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual licensing fees. The franchise business is gaining popularity these days in India. Entrepreneurs choose to own a franchise rather than start a business from scratch. A franchise business or franchising means an already established business grants a license to another business owner to operate with its name and use its expertise for a fee. Thus, franchising is a process where an established entity grants a license to another entity to use its name, trademark and expertise to run the business. The entity that grants the business license to another entity is known as the franchisor. The entity that buys the business license of the franchisor is known as the franchisee. Concept of Franchise A franchise is a business where an individual or an entity known as the franchisee owns a business under the trademark, brand, and business model owned by another entity known as the franchisor. In simple terms, a franchisee runs a business by using the existing brand name and business model of a franchisor for a specific period. Thus, both franchisee and franchisor have a legal and commercial relationship with each other. In a franchise business, the franchisee uses the trademark and brand name of a franchisor and sells the franchisor’s products or services. A franchisee pays the franchise fee and signs an agreement with the franchisor. A franchisee may also open a new branch of the franchisor business after all the legal formalities are complete. The relationship between franchisor and franchisee is significant as it forms the base of a franchise business. The franchisor permits the franchisee to use his/her business name, trademark, services, techniques, methods, etc., for an agreed fee. Thus, it helps the franchisor to expand the name and brand to a larger group of people and the franchisee to run a business at a low cost. For example: A person ‘X’ willing to open a clothes business can approach ‘Raymond’ company and obtain a franchise from them. Raymond will be the franchisor that will provide X with the business plan, trademark, clothes, and necessary documents to start the business and also advertise to get customers to the store. In return, X is supposed to give them an initial amount of profit as a fee. X can earn profits by selling clothes of the ‘Raymond’ brand and operating a clothes business at a low cost. Examples of Franchise Businesses in India: Subway, McDonalds, KFC, Pizza Hut, Hard Rock Cafe, Domino’s Pizza, etc. Types Of The Franchise Business Product franchises The product franchises are where the manufacturers use the franchise contract to decide how the franchisee will distribute the products. The franchisees distribute the franchisor’s products. The franchisors only provide their brand name to the franchisee. The franchisee will pay a certain amount to the franchisor as mentioned in the agreement. Manufacturing franchises In manufacturing franchises, the franchisees are allowed to legally make the products and market them using the trademark and name of the franchisor company. The franchisee will provide a franchise fee and also a certain amount for the units sold to the franchisor. Business franchise ventures Business franchise ventures mean the franchisee buys and sells the products from the franchisor. The franchisors provide franchisees with a client base which they need to maintain for future trade. Business format franchise In the business format franchise, the franchisor provides the necessary training and helps establish the business. The franchisor also provides the raw materials frequently and gets a royalty fee from the franchisee. In this franchise, the franchise business gets a proper business model made by the franchisor. Investment franchise Usually, franchisees invest money in the franchise business and hire their own staff in the investment franchise. The franchisors may also help the franchisees with investment and obtaining benefits. Job franchise business The franchisee can run a franchise business from home in a job franchise business. One person usually handles these types of franchises, ensuring the purchasing and selling of the product. Advantages and Disadvantages of Franchises Advantages There are many advantages to investing in a franchise, and also drawbacks. Widely recognized benefits include a ready-made business formula to follow. A franchise comes with market-tested products and services, and in many cases established brand recognition. If you’re a McDonald’s franchisee, decisions about what products to sell, how to layout your store, or even how to design your employee uniforms have already been made. Some franchisors offer training and financial planning, or lists of approved suppliers. But while franchises come with a formula and track record, success is never guaranteed. Disadvantages Disadvantages include heavy start-up costs as well as ongoing royalty costs. To take the McDonald’s example further, the estimated total amount of money it costs to start a McDonald’s franchise ranges from $1.3 million to $2.3 million, on top of needing liquid capital of $500,000.6 By definition, franchises have ongoing fees that must be paid to the franchisor in the form of a percentage of sales or revenue. This percentage can range between 4.6% and 12.5%, depending on the industry.2 For uprising brands, there are those who publicize inaccurate information and boast about ratings, rankings, and awards that are not required to be proven. So, franchisees might pay high dollar amounts for no or low franchise value. Franchisees also lack control over territory or creativity with their business. Financing from the franchisor or elsewhere may be difficult to come by. Other factors that impact all businesses, such as poor location or management, are also possibilities. Pros Ready-made business formula Market-tested products and services Established brand recognition Large decisions already made List of approved suppliers Training and financial planning provided Cons Success not guaranteed Large start-up costs Ongoing fees Lack of territory choice Lack of creative control Franchise Models

Attention is invited to the Instruction No. 01/2023-GST dated 04.05.2023 vide which guidelines were issued for conducting a special All-India drive during the period from 16th May 2023 to 15th July 2023 (which was further extended till 14th August 2023), for verification and detection of suspicious/ fake registrations and for taking timely remedial action to prevent any further revenue loss to the Government. A National Coordination Committee headed by Member (GST), CBIC and including the senior officers from different States and Centre was also formed to take decisions and monitor the progress of this special drive. A meeting of the said National Co-ordination Committee was held on 11th July 2024, wherein it was discussed that the special All-India drive conducted during the year 2023, was found quite effective in weeding out fake registrations. The Committee felt that there may be a need for further focused and coordinated action by Central and State tax authorities to clean up the tax base and to take concerted action against the fake registrations and fake/bogus invoices, on the same pattern as was done during the said drive. It was, therefore, decided that a second special All-India drive against fake registrations may be conducted by all Central and State tax authorities for a period of two months starting from 16th August 2024. The National Co-ordination Committee also decided that like the previous drive, a set of common guidelines may be issued to ensure uniformity in action by the field formations and for effective coordination and monitoring of the action taken during this special drive. The following guidelines are issued for such concerted action on suspicious/ fake registrations during the special All-India drive during this year: a) Period of Special Drive: The second Special All-India Drive may be launched by all Central and State Tax administrations from 16th August 2024 to 15th October 2024 to detect suspicious/ fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue. b) Identification of fraudulent GSTINs: GSTN, in coordination with Directorate General of Analytics and Risk Management (DGARM), CBIC, will identify suspicious/ high-risk GSTINs, based on detailed data analytics and risk parameters, for the purpose of verification by the State and Central Tax authorities during the said drive and share the details of such suspicious GSTINs, jurisdiction wise, with the concerned tax administration. In case of such suspicious GSTINs falling under the jurisdiction of Central Tax, the details will be shared with the Central Tax authorities by GSTN through DGARM. Besides, the State and Central Tax Authorities, may, at their own option, supplement this list by data analysis/ intelligence gathering at their end, using various available analytical tools like BIFA/ GAIN, ADVAIT, NIC Prime, E-Way Bill Analytics etc., as well as through human intelligence, modus operandi alerts, experience gained through the past detections, as well as the first special All-India drive. c) Action to be taken by field formations: i. On receipt of data from GSTN, a time bound exercise of verification of the suspicious GSTINs shall be undertaken by the concerned jurisdictional tax officer(s). If, after detailed verification, it is found that the taxpayer is non-existent and fictitious, then the tax officer may immediately initiate action for suspension and cancellation of the registration of the said taxpayer in accordance with the provisions of section 29 of CGST Act, read with the rules thereof. ii. Further, the matter may also be examined for blocking of input tax credit in Electronic Credit Ledger as per the provisions of Rule 86A of CGST Rules without any delay. Additionally, the details of the recipients to whom the input tax credit has been passed by such non-existent taxpayer may be identified through the details furnished in FORM GSTR-1 by the said taxpayer. iii. Where the recipient GSTIN pertains to the jurisdiction of the said tax authority itself, suitable action may be initiated for demand and recovery of the input tax credit wrongly availed by such recipient on the basis of invoice issued by the said non-existent supplier, without underlying supply of goods or services or both. iv. In cases where the recipient GSTIN pertains to a different tax jurisdiction, the details of the case including the details of the recipient GSTIN, along with the relevant documents/ evidence, may be sent to the concerned tax authority, as early as possible, in the format mentioned in Annexure-B. For sharing such details/ information and coordination with other tax authorities, GSTN Back Office has an online functionality, namely, ‘Initiate Enquiry’ in the Enforcement module, which is available to all tax officers who have been assigned the role of ‘Enforcement Officer’ on the Back Office (BO Portal). v. For the purpose of communicating this information to the recipient tax jurisdiction, a nodal officer shall be appointed immediately by each of the Zonal CGST Zone and State. The name, designation, phone number/ mobile number and E-mail Id of such Nodal officer(s) appointed by CGST Zones and States must be shared by the concerned tax authority with GST Council Secretariat within three days of issuance of this letter. GST Council Secretariat will compile the list of the Nodal officers after procuring the details from all the tax administrations and will make the compiled list available to all the tax jurisdictions and to GSTN. vi. The nodal officer of the tax jurisdictions may be assigned the role of ‘Enforcement Officer’ on the BO Portal. Wherever the details of the recipient GSTIN needs to be shared to other tax jurisdiction, the same may be done through the nodal officer. The said nodal officer will accordingly share the information about the recipient GSTIN with the nodal officer of the concerned recipient tax administration, through the said functionality, attaching a pdf document in the format mentioned in Annexure-B. The nodal officer of the recipient tax administration will further share the details with the concerned jurisdictional tax officers, for necessary action. vii. GSTN will issue detailed guidelines/ advisory regarding usage of

A possession certificate, often referred to as a possession letter, is one of the most crucial documents that a property seller offers to a buyer. It is typically administered by a Tehsildar in rural regions and a Revenue Divisional Officer (RDO) in urban areas. This certificate can be used to acquire a house loan from a financial institution. A possession certificate provides documentation that the ownership interest in the property has been transferred legally. To prove that you are a legal owner of the property, you must obtain an occupancy certificate. It is provided by the local authorities and states that the property was built in accordance with local legislation and is complete according to the approved plan. The certificate proves that the property is ready for use. It is a required document that confirms your ownership of the property. If you do not obtain the certificate, local authorities may declare the property illegal. Possession Certificate in Karnataka Possession certificate in Karnataka is issued by the Bangalore Development Authority. It is one of the most important documents that the buyer gives to the seller stating the date pf property possession. The certificate is also used to include the concerned property in the land revenue records. Difference Between Occupancy Certificate and Possession A possession letter does not transfer legal ownership of the property to the buyer. To do so, he or she must obtain an occupancy certificate, which grants him or her not only the rights to the property but also access to the civic amenities provided by the complex. The possession letter also specifies the time frame within which the owner must make the final payment and take possession of the property. To secure a house loan, the original copy of the possession letter must be supplied.  An occupancy certificate, on the other hand, is provided by local authorities to indicate that a project has been completed and that the building is ready for habitation. It also specifies that the property was constructed in accordance with all applicable bylaws and guidelines. The certificate also grants homeowners ownership of the property. Documents Required Sale deed agreement copy Registered sale agreement copy Applicants identity and signature proof Certificate of encumbrance (Form 15) Steps to Apply for Possession Certificate in Karnataka Step 1: Visit the website Sakala Karnataka Official Site Step 2: Click on the “Sakala Online Services” tab. Step 3: Click on the “Bangalore Development Authority” tab. Step 4: Alternatively, you can also visit the Bengaluru Development Authority website and go to “Services Under Sakala” section. Step 5: Click on “Apply Online Possession Certificate Under SAKALA” as highlighted in the picture above. Step 6: You will be redirected to “Seva Sindhu” portal (https://sevasindhu.karnataka.gov.in). Step 7: Again, click on the “Bangalore Development Authority” tab and proceed to click on “Application for Possession Certificate for Sites” or “Application for Possession Certificate for Flats”. Step 8: Upon clicking, you will be able to check your eligibility and the documents required. Step 9: Click “Apply Online”. You will be asked to key in your registered mobile number and then click “Get OTP”. You will get a one-time password. Enter the OTP along with the captcha code and hit the “Submit” button.   Step 10: You will also be required to upload all the mandatory documents. Upon completion of the process, your possession certificate will be issued. Offline Procedure To apply offline, submit the application for possession certificate along with all the necessary documents to the concerned officer at the Deputy Secretary’s Office. Ensure to get a note of acknowledgement. You won’t be charged any fee for the application. It will take a maximum of 7 working days to process the application. You will then receive a notification to collect the possession certificate. You will be required to sign in a register as an acknowledgment of receiving the certificate. FAQs What do you mean by possession certificate? Bangalore Development Authority (BDA) issues a possession certificate in Karnataka. It is one of the most significant documents that the buyer presents to the seller, and it specifies the date on which the buyer will take possession of the property. The certificate is also used to register the property in the land revenue system. What is an EC certificate? EC certificate or an encumbrance certificate is a certificate of assurance that the property in question is free of any legal or monetary liability, such as a mortgage or an uncleared loan.

Compounding interest, as opposed to simple interest, is the situation where your wealth increases exponentially because you earn interest on your total investments, the aggregation of your principal amount and the interest it incurs. Mathematically, the possibilities of compound interest are endless.  What is Compound Interest? Compound interest is the interest on interest. The interest you earn on the deposit will be reinvested instead of paying it out. In simple terms, if you have investment Rs.100000  for 3 years and you will get a compounding benefit every quarter, then your money will be reinvested every quarter with an earned interest in last months.  Suppose interest rate of your investment is 12% p.a, you will receive 1% monthly interest on Rs.100000 in the initial three months of your investment. After thee months (Quarter), you investment will be reinvested will the earn interest (Rs.100000 + 3000) and you will starting receiving 1% monthly interest on Rs. 103000, after two quarters interest will be occur on Rs.106003 and It will go on until the maturity. How can a Compound Interest Calculator Help You? Accurate Projections: Quickly determine how much your investment or savings will grow over time with precise calculations, taking into account the principal amount, interest rate, and compounding frequency. Financial Planning: Use the calculator to plan for future financial goals, such as retirement, education, or major purchases, by estimating how much you need to save or invest to reach your target amount. Comparison of Investment Options: Compare different investment opportunities by inputting various interest rates and compounding periods to see which option offers the best returns. Understanding Compounding Effects: Visualize the power of compound interest and how even small increases in interest rates or time horizons can significantly impact your total returns. Budgeting and Saving Strategies: Adjust your savings plan by seeing how different monthly contributions affect your long-term savings, helping you create a more effective budget. Customizable Scenarios: Experiment with different scenarios by changing variables like the initial amount, interest rate, and time period to see a range of possible outcomes. Motivation to Save: Seeing potential growth can encourage you to save more and stick to your financial goals, knowing the benefits of compound interest. Easy Accessibility: Many online calculators are user-friendly and free, making it easy to get quick and accurate information without needing advanced financial knowledge. How to Calculate Compound Interest? A = P (1 + r/n) ^ nt The variables in the formula are the following. P Principal Amount A Compound interest R/r Rate of interest N/n Number of times interest compounds in a year T/t Number of years For example, if you invest Rs. 50,000 with an annual interest rate of 10% for 5 years, the returns for the first year will be 50,000 x 10/100 or Rs. 5,000. For the second year, the interest will be calculated on Rs. 50,000 + Rs. 5000 or Rs. 55,000. The interest will be Rs. 5550. For the third year, the amount will stand at Rs 6055 and so on. FAQs How does Compound Interest Calculator help you to choose an investment? Compound Interest Calculator shows you the compound interest that you earn on investments. It helps to choose the right investment tool, period for your investment and make your financial planning better.  What is Daily, Monthly, Quarterly and Yearly compounding? Daily, monthly, quarterly, and yearly compounding refer to how often interest is calculated and added to the principal. Daily compounding adds interest daily, maximizing returns. Monthly compounding adds interest every month, while quarterly compounding does so every three months. Yearly compounding adds interest annually. The more frequent the compounding, the higher the effective interest rate and the greater the potential returns on the investment.

According to Section 194A of the Income Tax Act, the interest earned from bank accounts and other deposits is subject to TDS. This TDS is deducted if the interest earned exceeds the exemption limit for the financial year. Therefore, senior citizens can submit Form 15H to ensure no TDS is deducted from the interest earned from fixed deposits (FDs), recurring deposits (RDs), and other savings schemes. This is only applicable if the interest income earned is within the tax limit. The limit on total interest earned for the financial year is Rs. 50,000 for senior citizens aged 60 years and above. What is Form 15H? Form 15H is a self-declaration form to be filed and submitted by senior citizens (aged 60 years or older) to ensure that banks or financial institutions do not deduct TDS on the interest income earned or accrued in a financial year. This form is used when the individual’s estimated total income is below the basic exemption limit (i.e., ₹3,00,000 or ₹5,00,000, as applicable) and there is no tax liability in that particular year. Key Points About Form 15H: Eligibility: Only for senior citizens (60 years or older). Interest Income Criteria: The estimated total interest income should be below the basic exemption limit. Purpose: Prevents the deduction of TDS on interest income if the total income is below the taxable limit. Validity: Valid for one financial year and needs to be submitted every year if the criteria are met. Provisions of the Income Tax Act: Financial institutions and other organizations must deduct TDS while crediting interest income to an individual’s account if the amount exceeds INR 50,000 for senior citizens. What is Form 15H of the Income Tax Act? Form 15H of the Income Tax Act is a self-declaration form for senior citizens (aged 60 years and above). It must be submitted to avoid tax deducted at source (TDS) on interest income if it is below the exemption limit. TDS is deducted if the interest earned is more than the exemption limit. For example, the limit is Rs. 40,000 (for individuals aged below 60 years) and Rs. 50,000 (for senior citizens aged above 60 years). For total income, the basic exemption limit for senior citizens (aged 60 years and above till 80 years) is ₹3,00,000, while for super senior citizens (aged 80 years or above), it is ₹5,00,000 for the financial year 2023-24.  Form 15H can be submitted online to banks, non-banking financial companies (NBFCs), or financial institutions where the person has a deposit through the official websites or offline at the branch. However, submitting your PAN card details along with this form is mandatory.  Importance of Form 15H for Senior Citizens Senior citizens can use this form to avoid TDS liability on interest earned from investments and deposits. As mentioned earlier, TDS is not deductible if the interest income earned from these deposits and investments for the financial year is within the limit of Rs 50,000 for senior citizens (60 years and above). This form has to be submitted only once a year.  For instance, if you are a senior citizen with no source of income (other than income from interest on deposits), you can submit Form 15 to the banks, NBFCS, and financial institutions where the deposit is held.  Who is Eligible to Submit Form 15H? The individual needs to be a resident citizen of India. Form 15H is specifically for senior citizens (aged 60 years and above). For individuals below the age of 60 years, Form 15G must be submitted. The total taxable income for the financial year must be below the basic exemption limit. The current limit on total interest earned for the financial year is Rs. 50,000 for senior citizens aged 60 years and above.  Form 15H for senior citizens needs to be submitted to each bank, NBFC, or financial institution where the person holds a deposit that earns interest. Uses of Form 15H Form 15H can be used for several purposes. These are listed below: TDS on Interest Earned on Bank FDs: Submitting Form 15H to the bank, NBFC, or financial institution where the senior citizen holds a fixed deposit(s) can help save taxes on interest earned. TDS on Interest Earned on Post Office Deposits: Senior citizens can submit Form 15H to the post office to ensure no tax is deducted at source on deposits. TDS on Interest Earned on Corporate Bonds: TDS also applies to any income exceeding Rs. 5,000 earned annually from corporate bonds. However, senior citizens can submit Form 15H to the issuer to request an exemption from TDS, provided they meet the necessary criteria. Details to be Filled in Form 15H The declarant’s name  Address of the applicant PAN of the applicant  Age Income information for which the declaration needs to be made  Self-declaration Signature and date of submission Difference Between Form 15G and Form 15H Form 15G vs Form 15H Form 15G Form 15H Individuals below the age of 60 can submit Form 15G. Only senior citizens (those aged 60 or above) can submit Form 15H. It must be submitted to avoid TDS on interest income if it is below the exemption limit of Rs. 40,000. It must be submitted to avoid TDS on interest income if it is below the exemption limit of Rs. 50,000. NRIs can submit Form 15G upon meeting all the eligibility criteria. NRIs are not eligible to submit Form 15H. A Hindu Undivided Family (HUF) can submit Form 15G. Form 15H cannot be submitted by an HUF. FAQs What is the use of Form 15H? Form 15H provides tax exemptions on deposits in banks, NBFCs, and other financial institutions for senior citizens (aged 60 years and above) if the interest earned from these deposits is within the exemption limit. What is the income limit for Form 15H for senior citizens? The basic income exemption limit of Form 15H for senior citizens (aged 60 years and above) is ₹3,00,000, while for super senior citizens (aged 80 years or above), it is ₹5,00,000 for the financial year 2023-24.

A Certificate of Deposit or CD is a fixed-income financial tool that is governed by the Reserve Bank of India and is issued in a dematerialized form. It is a type of agreement made between the depositors and the banks, wherein the bank pays an interest on your investment.  Certificate of Deposit is a short-term investment that comes with fixed investment amounts and maturity tenure ranging between 1-3 years. Features of Certificate of Deposit Certificate of deposit in India can be issued for a minimum deposit of Rs. 1 lakh or in subsequent multiples of it. Certificates of deposit are issued by the Scheduled Commercial Banks (SCBs) and All-India Financial Institutions. The Cooperative Banks and the Regional Rural Banks(RRBs) are not eligible for issuing a CD. There is a term period of 3 months to 1 year for CDs that are issued by SCBs, whereas the term period ranges from 1 year to 3 years for CDs issued by financial institutions.  CDs in dematerialised forms can be transferred through endorsement or delivery, similar to dematerialised securities. There is no lock-in period for a certificate of deposit. It is fully taxable under the Income Tax Act. Certificate of Deposit – Key Highlights Certificate of Deposit Meaning The Certificate of Deposit is the product that is offered by banks and credit unions that give an interest rate premium in exchange for the customer agreeing to lock in an amount for a predetermined period of time. Certificate of Deposit Interest Rates Locked rates are the positive attributes of CDs, and they will provide a clear and predictable return to the Deposit over a time period. The bank will not, even later on – change the rate, making it a guaranteed return.  CD Minimum Amount The minimum amount of Deposit begins at Rs. 1,00,000. Tenure This is the length of the period for the CD; for instance, it could be six months to years. The tenure ends on the date of the maturity; when the CD has matured completely, you will be able to withdraw the funds without a penalty fee. Eligibility Criteria CDs are issued by scheduled commercial banks and selected financial institutions in the country as allowed by RBI within the limit.  It is issued to individuals, corporations, companies, and funds, among others. Certificate of Deposits could also be issued to NRIs but on a non-repatriable basis only.  It is important  to note that banks and financial institutions can’t provide loans against CDs. Also, banks would not buy their own CDs before the latter’s maturity. The aforementioned norms would be relaxed by the RBI for a particular period of time. It is crucial to note that banks have to maintain the statutory liquidity ratio and cash reserve ratio on the price of a Certificate of Deposit. Taxes Certificates of deposits are completely fully taxable in the hands of investors under the Income Tax Act. Opportunity for Loans A depositor can get loans against CDs, except for the permitted explicitly by the RBI. The issuer is given to buy back CDs before maturity at the prevailing market price. The investors could opt for accepting or rejecting the CDs purchased back offer as per wants. How to Buy a Certificate of Deposit? The process of buying and selling CDs is similar to that of buying and selling shares, and the steps are mentioned below: Step 1: The seller and the buyer need to agree on the price and the quality of the transaction. Step 2: The seller will authorise its depository participants through the delivery instructions slip. Step 3: The slip will be inclusive of the instructions to debit the seller’s account and transfer the CD to the account of the buyer. Step 4: In the case of any confusion, you can also get assistance from a professional. Certificate of Deposit vs Fixed Deposit Criteria Fixed Deposit Certificate of Deposit Minimum Investment Amount The minimum investment amount for a fixed deposit is Rs. 1000. The minimum deposit amount for a CD is Rs. 1 lakh. Return on Investment It ranges from 3.5% to 8%.  The interest rate on CDs, if issued by organisations, has higher interest rates as compared to commercial banks.  Investment Tenure It is a long-term investment and offers a maximum maturity period of 10 years. This is a short-term investment and offers a maturity period ranging from 1-3 years. Collateral One can apply for a loan against FD. One cannot apply for a loan against a CD. Benefits of Issuing a Certificate of Deposit in India A certificate of deposit does not consume capital for market volatility, and it is a completely secure financial instrument with assured amounts at the time of maturity. The money that is deposited would continue to predict an increase. It also offers a lot of larger interest rates on a lump sum investment. CDs offer you monthly payouts, annual payouts, or also a lump sum payout during withdrawal at maturity. You could choose the tenure and price you want to be invested for, and though there are certain parameters set by the bank, it will help to tailor the investment instruments to your needs. There are usually no additional costs or fees that are associated with a CD, and you only pay your investment. FAQs Will I be able to withdraw the funds from my online CD? Yes, you can withdraw funds only once from your online CD during the grace period without any withdrawal penalty. However, you will be charged with an early withdrawal penalty if you withdraw before the maturity period. What happens once a CD matures? After a CD matures, the investor will have a grace period to withdraw their funds or transfer them into a new CD. Or else the banks or financial institutions may automatically renew it.