Is Fixed Deposit The Best Investment Option In India?
Once you have decided to build your investment portfolio, you would want to check out all the available investment options to ensure maximum benefits. However, you need to choose the investment plans based on your risk appetite and your financial goals. The right investment plan will aid you in maximizing your wealth efficiently.
One such financial instrument is Fixed Deposit (FD). It is one of the most reliable and secure investment option prevailing in India. While looking for investment plans, high returns are not the only factor you need to consider. This is because higher returns are associated with higher risks. FD offers higher returns than a traditional savings account but would give lower returns than market-linked volatile fund options.
What is Fixed Deposit?
Firstly, All you need to know What is Fixed Deposit (FD)? Fixed Deposit (FD) is a financial instrument provided by banks or NBFCs, which provides investing option with a higher interest rate than the regular savings account. It may or may not need the creation of a separate account. This is known as Term Deposit(TD) or Time Deposit. They are considered very safe investment. Term deposit in India is used to show a large class of investment with different levels of liquidity. The Interest rate on FD might be varied from Banks to Bank and governed by the Reserve Bank of India (RBI). Some banks may offer additional services to FD holders such as loans against FD at a competitive interest rate.
Why Should You Invest in FD?
When you invest in an FD, you get guaranteed returns from your investment without the influence of market rate fluctuations. Leading financial providers in India like Bajaj Finance offers assured returns for your investment with high FD interest rates of up to 9.10 %. Depending on the type of the customer category you fall in like an existing customer, new customer, and senior citizen, the interest rates would vary. You can calculate the FD interest rates and the maturity amount from your investment using the quickly accessible online FD calculator. Even though you wish to invest in market-linked investment plans, setting aside a portion of your saving for FD can help you in having a financial backup to meet your financial goals efficiently. Also, there is a facility wherein you can ladder your investments in FD with multiple FDs at the same time with different tenors to maintain liquidity from your investments.
Following are some of the features of availing FD from Bajaj Finance:
- Deposit sum as low as Rs 25000
- Guaranteed high returns without market rate influence
- 35% increase in interest rates for senior citizen FD
- High stability with CRISIL’s FAAA and ICRA’s MAAA rating
- Flexibility in choosing the tenor from 12 months to 60 months
- Quick online application procedure with easy management of investment through individual portals
- Facility to calculate the returns using online FD calculator
- You can select the type of FD from cumulative and non-cumulative FD. Cumulative FD pays the interest along with the maturity amount or annually. Non-Cumulative FD allows you to choose the frequency of interest payout.
- Option to choose the interest payout frequency from monthly, quarterly, half-yearly, and yearly basis.
- In case of emergencies, you can make a partial withdrawal. However, you will need to pay a penalty charge, and you will not be able to enjoy the comprehensive benefits of the FD account.
- You can avail loan against your FD account wherein you can use up to 90% of the accrued sum.
- 24/7 customer care support online as well as offline for guidance regarding any financial services offered by the company.
- You can avail deduction under Section 80C of the Indian Income Tax Act.
Types of FD
There are two types of FD, they are:
In a cumulative FD, the interest payout is paid on an annual basis or at the time of maturity of the FD.
In this type of FD, the interest is paid as per your preferences on a monthly, quarterly, bi-annual, or annual basis.
Fixed Deposit (FD) offers higher interest rates than a savings account, and a cumulative FD offers higher returns than non-cumulative FD. Also, you got to check the credibility of the financial provider you invest in to gain maximum benefits like Bajaj Finance!