Fixed Deposits are bank deposits for a fixed or specified period selected by investor or depositor at a fixed rate of interest. You can deposit money for a short period as seven days and up to 10 years. Whenever you open a fixed deposit with the lender then you’re lending money to the lender and that brings you interest. As the interest rate and the time period are fixed, this investment product is called a Fixed Deposit. Deposit up to Rs 1 lakh in almost any lender is protected under the Deposit Insurance & Credit Guarantee Scheme of India.
Benefits Of Fixed Deposit Investment.
Secured returns: ROI is guaranteed. Additionally to the amount deposited in the FD, you’ll get intrigued in the prevailing interest rate during the time of submission. Reduction in market volatility or rates of interest won’t impact your return on investment. This is the reason most seasoned investors also prefer to keep a part of their investments in fixed deposits.
Fixed Deposit Investment Time Period: Tenure can be very adaptable for the fixed deposit, which goes from seven days to 10 years based on the requirements of the customer. You could make multiple term deposits for the exact same or different term at the exact same time in the exact same bank. You’ll get a separate receipt for every FD.
FD High Interest: The rate of interest on fixed deposits are very high in comparison to the savings account. Rates of interest vary based on the period of fixed deposit. Rates of interest for most long term FDs are large.
Calculation of interest: Customers can choose the frequency of interest they wish to get, whether it’s on a monthly, quarterly or annual basis. This may become another income source for the customer. Interest on fixed deposits is calculated as compounding.
Easy to start: You may easily open a deposit by simply going to the bank in which you’ve got an account. You may also open it also from mobile banking in the home.
FD For Senior Citizens: Fixed Deposits Investment between older citizens are very popular. The primary reason is that it’s simple to make it, there’s absolutely no danger inside and mature citizen gets more interest rate, which can be 0.5% to 1% greater than the interest received by ordinary people. Elderly citizens receive an additional tax rebate on interest.
Loan On FD: If you want money in the emergency, it’s simple to take a loan on the basis of your fixed deposits. Customers may also take a credit card or an overdraft in return. The consumer can borrow up to 90 percent of the principal amount of the fixed deposit. The consumer carries on to receive interest on a loan against FD. The loan is to be paid to the consumer on the loan, which is lower than the market rates.