{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/fixed-deposit\/long-term-fixed-deposit\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/fixed-deposit\/long-term-fixed-deposit\/","headline":"Long-Term Fixed Deposit – Meaning, Interest Rates & Benefits","name":"Long-Term Fixed Deposit – Meaning, Interest Rates & Benefits","description":"Investors who seek a long-term approach to investing often look for options that are stable and predictable. Fixed Deposits (FDs) with their flexible tenures and guaranteed returns are an ideal solution for such investors. By investing in an FD for the long term, investors can enjoy a variety of benefits, of which compounded returns is...","datePublished":"2024-11-19","dateModified":"2024-11-19","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/#Person","name":"CONVONIX Antony","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Long-Term-Fixed-Deposit-FD-Meaning-Interest-Rates-Benefits-min.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Long-Term-Fixed-Deposit-FD-Meaning-Interest-Rates-Benefits-min.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/fixed-deposit\/long-term-fixed-deposit\/","about":["Fixed Deposit"],"wordCount":1353,"articleBody":"Investors who seek a long-term approach to investing often look for options that are stable and predictable. Fixed Deposits (FDs) with their flexible tenures and guaranteed returns are an ideal solution for such investors. By investing in an FD for the long term, investors can enjoy a variety of benefits, of which compounded returns is one advantage.\u202f Whether your long-term goal is to fund your child\u2019s education, support your retirement, or wealth accumulation, a long-term FD can be a great value addition to your financial portfolio. Let\u2019s learn more about it, with a special focus on its interest rates.\u202f What Are Long-Term Fixed Deposits?A long-term fixed deposit is an investment option where you deposit a lump sum of money with a bank for a prolonged period. You can opt for a long-term FD with a tenure of two to ten years or more.\u202f The bank pays interest on the deposit. You can withdraw the interest at regular intervals or allow it to compound until the FD matures.\u202f A long-term FD is ideal for those who do not require immediate access to their funds and want steady returns over time. These FDs are also ideal for those who do not want exposure to market risks. Depending on the bank and the tenure, the interest rate for a long-term FD can be higher as compared to a short-term deposit.\u202f Understanding Interest Rates on Long-Term Fixed Deposits  One of the most attractive features of long-term fixed deposits is the potential to earn higher interest rates.\u202f IndusInd Bank, for instance, offers higher interest rates for longer tenures.\u202fFor example, at the time of publishing this blog, an FD held for 180 days (approximately six months) offers interest at 5%. However, a 2-year FD could yield 7.75%.\u202f However, it is crucial to understand that the interest rate for a long-term FD does not always increase with tenure. Banks usually have a ceiling to how much interest they can offer.\u202f Therefore, while longer tenures tend to attract better rates, you must compare different FD options first. You can also use tools such as the FD Calculator from IndusInd Bank to get an estimate of your returns based on your chosen tenure. This will allow you to plan your finances in a smoother manner.\u202f * Please note that interest rates are subject to change. Refer for the latest fixed deposit interest rates. Benefits of Long-Term FDsInvesting in long-term FDs with IndusInd Bank offers a multitude of benefits: 1. Higher Interest PotentialAs discussed above, long-term FD interest rates tend to be higher than those offered on short-term FDs. This can allow you to maximise your returns over time. 2. Predictable and Assured ReturnsLong-term FDs are a safe, low-risk investment option. They provide returns at fixed interest rates. So, you can rest assured that you will receive guaranteed returns on your investment. Most banks also allow you to check the expected FD returns at maturity within their app or net banking portal.\u202f 3. Financial DisciplineA long-term FD is ideal if you are looking for a disciplined approach to saving. With an FD, you have to lock in your funds for an extended period. Thus, you are less likely to make impulsive withdrawals.\u202f 4. Flexible Tenure A long-term FD will have a tenure exceeding one year. However, IndusInd Bank gives you the flexibility to choose a tenure that helps you achieve your financial goals at your own pace. 5. Compounding EffectYou can enjoy the benefit of compounding by investing in an FD for the long term. For the uninitiated, compounding is where the interest earned is added to the principal, and interest is then calculated on the new, higher principal amount. This can largely increase the maturity amount, especially if compounding happens on a more frequent basis.\u202f 6. Flexible Payout OptionsWith a long-term fixed deposit, you can choose to receive interest payouts at regular intervals, such as monthly or quarterly. Or you can opt for cumulative interest, where the interest is reinvested until maturity. Also Read: Navigating the Benefits of Auto-Renewal Fixed Deposits ConclusionThus, long-term fixed deposits are an attractive combination of stability, growth, and peace of mind. By locking in your savings for an extended period, you can benefit from attractive interest rates and secure your financial future.\u202f IndusInd Bank provides Fixed Deposits at high interest rates to help you meet your financial goals with ease. With our hassle-free online booking process, you can book an FD in minutes. Non-IndusInd Bank customers can also book an instant FD through our website.\u202f Visit our website to book your Fixed Deposit and start your journey toward financial stability today!\u202f Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your 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 making any financial decisions based on the contents and information. Share This:"}