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5 Compelling Reasons to Invest in FDs
Posted on Monday, October 17th, 2022 | By IndusInd Bank
During these ever-changing times, volatility is not our friend; stability is.
So, with the myriad of investment options available, what is the safest way to make your money work for you? The answer is a Fixed Deposit!
A Fixed Deposit is a simple, risk-free investment option that is perfect to build up your savings while earning attractive interest on your money. And while it is a traditional form of investing, Fixed Deposit is still the safest form of investment. Did you know? Fixed Deposits have higher interest rates than savings accounts! They are also ideal for achieving short-term and long-term goals and offer competitive advantages.
So, while the benefits of investing in Fixed Deposits are manifold, here are 5 compelling reasons why you should invest in one!
Flexible tenures help in overall financial management
You can open an FD for a pre-decided period that’s totally up to you which varies from 7 days to 10 Yrs. You also have control over the interest payout since you can choose between cumulative/Re-investment of the interest earned or monthly/quarterly interest payout. This way, how much you invest and how much you earn is totally up to you.
Shields investors from external shocks
External economic factors have no impact on your FD investments. At the time of maturity, you will receive your principal amount + the accumulated interest earned, regardless of the current market scenario. Also, your Fixed Deposit is insured up to a tune of 5L as per RBI mandate under DICGC insurance policy at a customer level.
Highly liquid in case of contingencies
During times of financial crisis, a Fixed Deposit can easily come to your aid. You can break and withdraw your money before the period of maturity with a simple process and paying minimal penal charges. It is the ideal type of investment that dispenses funds in times of need.
Assured returns
Unlike market-linked investment instruments, FDs are one of the safest investment options. During the tenure of the FD, the rate of interest does not fluctuate. So, you don’t have to constantly monitor its performance, and your returns are assured.
Tax-saving FDs
FDs are not only perfect for risk-averse investors but also for those seeking tax benefits. You can invest in tax-saving FDs that allow you to avail of tax deductions under section 80C of the Income Tax Act, 1961. To qualify for a tax-saving FD, you should set up an FD for a lock-in period of 5 years.
In short, investments in fixed deposits are NOT subject to market risks. Even from a stability perspective, they are an excellent form for investment. And it doesn’t take much to set up a Fixed Deposit. With IndusInd Bank, you can even open a Fixed Deposit online. This facility is available even to those without an existing bank account. All you need is Pan & Aadhar Card to open an IndusInd Bank Fixed Deposit online.
Interested? Explore our FD rates and exclusive benefits. Visit https://www.indusind.com/in/en/personal/deposits/fixed-deposit.html to know more.
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.
