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What is a Fixed Deposit?
Posted on Tuesday, March 28th, 2023 | By IndusInd Bank
Fixed Deposits, also known as FD, is a popular investment option in India for people looking to earn fixed returns on their savings. It is a type of deposit account offered by banks and other financial institutions, where the depositor agrees to lock in their funds for a specified period in exchange for a predetermined rate of interest.
Fixed deposits are considered to be one of the safest and most secure investment options available in the market. They offer guaranteed returns, irrespective of market conditions or economic fluctuations. Moreover, fixed deposits also provide a stable source of income to individuals, which is why they are often preferred by retirees and senior citizens.
How do Fixed Deposits Work?
To open a fixed deposit account, you will need to deposit a certain amount of money with the bank or financial institution for a specified period of time. The amount of money that you deposit is known as the principal amount, while the period for which you keep your money in the account is known as the tenure.
Once you deposit your money in a fixed deposit account, the bank or financial institution will pay you a predetermined rate of interest on your deposit. The rate of interest on fixed deposits varies from bank to bank and is based on the amount of money deposited, the tenure of the deposit, type of FD, etc.
At the end of the term, you will receive your principal amount along with the interest earned on your deposit.
Benefits of Fixed Deposits
Fixed deposits offer a range of benefits to investors, including:
Guaranteed Returns: Unlike other investment options, fixed deposits offer guaranteed returns, which means that you can calculate your returns in advance and plan your finances accordingly.
Safety and Security: Fixed deposits are considered to be one of the safest investment options as they are backed by the deposit insurance guarantee of up to a certain limit.
Higher Interest Rates: IndusInd Bank fixed deposits offer higher interest rates than many investment options out there, which means that you can earn more from your savings.
Flexible Tenure: Fixed deposits come with flexible tenure options, ranging from a few months to several years, which allows you to choose a tenure that best suits your financial goals.
How to book an FD with IndusInd Bank
IndusInd Bank offers a hassle-free and safe investment option that provides higher interest rates through our fixed deposit account. Our interest rates on fixed deposits are among the highest when compared to other banks.
Opening an IndusInd Bank online fixed deposit account is a breeze and can be done in just three simple steps:
Step 1: Verify your mobile number, Aadhar, and PAN.
Step 2: Fill out the online application.
Step 3: Select the fixed deposit type that aligns with your savings goal.
Once you transfer funds online to create your fixed deposit, you will receive a copy of the deposit details and your online fixed deposit account will be created.
Whether you are a parent saving for your child’s education or a working professional planning for a luxurious retirement, IndusInd Bank is the ideal solution for your investment needs.
Book your fixed deposit with us now and make your financial goals a reality.
Conclusion
Fixed deposits are a low-risk, high-reward investment option that offer guaranteed returns and safety of capital. They are ideal for people who are looking for a safe and secure investment option with a fixed rate of interest. However, before investing in a fixed deposit, it is important to compare interest rates offered by different banks and financial institutions and choose a tenure that best suits your financial goals.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.