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Smart Ways to Pick the Right Fixed Deposit
Posted on Thursday, December 21st, 2023 | By IndusInd Bank
When choosing a fixed deposit, look into the bank’s credibility, the fixed deposit interest rate, tenure, ease of application, and interest pay-out options. The IndusInd Bank fixed deposit fulfils every criterion, making it a worthy option for investors.
Choosing an investment option is scarcely as simple as it sounds. Your research must be thorough and it is imprudent to pick anything without taking your risk appetite into consideration. Making a choice can get easier if you are the sort of person that is naturally drawn towards the tried-and-tested, preferring the limited but undeniable gains of a fixed deposit to the potentially larger but infinitely riskier returns of a market-linked instrument such as a mutual fund. But then again, having chosen a fixed deposit to invest your precious savings in, you might just be faced with yet another predicament – which fixed deposit to choose. With an abundance of options scrambling for attention, picking the right fixed deposit can also be tricky.
Luckily, help is at hand and it is right here. Read on to learn of a few smart ways to pick the right fixed deposit.
1. Find Out about the Bank’s Credibility
A fixed deposit (FD) is reassuringly free of risk, but it is important not to overlook the reputation and credibility of the bank in which you are looking to book an FD. Find out the institution’s CRISIL or ICRA ratings. While the CRISIL rating indicates the probability of default on the instrument, the ICRA rating may be understood as signifying credit quality.
2. Select the Best Interest Rate
It is a given that an investment must be chosen on the basis of the returns it helps yield. Accordingly, it makes obvious sense to compare fixed deposit interest ratesoffered by various banks and select the one offering the most attractive rate. The mathematics of it is simple – the higher the interest rate, the greater your returns.
3. Choose a Suitable Tenure
Fixed deposit tenures are typically wide-ranging – from 7 days to 10 years – allowing you the flexibility to choose a time period that best meets your savings goals and preferences. Pertinently, many top banks today offer the highest fixed deposit interest rates on tenures ranging between 2-3-years – a factor worth noting if your choice of tenure hinges on how much interest you will earn.
4. Look Out for Ease of Booking
There is no reason why you should have to spend several days embroiled in an antiquated application process involving cumbersome documentation and verification.
Opt for a bank that lets you book your FD instantly with zero physical documentation and video-based KYC.
5. Check for Interest Pay-Out Options
If you are looking for regular financial support via your FD, make sure to choose a product that comes with a periodic interest pay-out option. Depending on your needs and preferences, you could go for monthly, quarterly, half-yearly, or yearly pay-outs.
Why an IndusInd Bank Fixed Deposit may be Right for You
In light of the tips elucidated above, a fixed depositfrom IndusInd Bank may be the right option for you. The reasons are detailed in the table below.
| Criterion | How IndusInd Bank Scores | |
| 1. | Credibility | IndusInd Bank boasts an AA+ Crisil and ICRA rating, making it one of the safest banks for opening a fixed deposit. Moreover, the Deposit Insurance Scheme of the RBI covers all FDs worth up to INR 5,00,000. |
| 2. | Interest Rate | IndusInd Bank offers best-in-class interest rates for fixed deposits. |
| 3. | Tenure | Tenures are flexible and wide-ranging, from as little as 7 days to as many as 10 years. |
| 4. | Ease of Application | IndusInd Bank lets you book your FD instantly in 3 easy online steps, requiring only PAN & Aadhaar details, and completion of Video-KYC. |
| 5. | Interest Pay-Out Options | Get multiple options for interest pay-outs including at monthly, quarterly, half-yearly, or yearly intervals. Alternatively, you could opt for none and receive the full amount at maturity. |
Despite the easy availability of scores of investment options, the fixed deposit enjoys enduring popularity – a testament to the trust it has gained across groups of investors. With top banks such as IndusInd Bank enhancing the features of this simple yet appealing investment product, it makes perfectly good financial sense to open a fixed depositand sit back to watch your savings grow over time.
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.
