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Why Fixed Deposits Have Charmed Generations of Indian Households
Posted on Wednesday, January 11th, 2023 | By IndusInd Bank
Indians continue to rely and look upon Fixed Deposits as risk-free investments that offer guaranteed returns. With an attractive interest rate and flexible tenure, IndusInd Bank FDs are a great option for risk-averse investors.
Over the years, each generation evolves. There is a new set of identities born every 10 years. It’s reflected in art and movies around us as well, right? If it was short Kurtis fashion and bell-bottom jeans in the early 2000s, it’s anarkalis and straight jeans. Digital channels are reigning, and OTTs are giving Bollywood a run for its money, while movie theaters are going empty. If there is one thing that hasn’t seen a change in decades is our love for traditional investment.
Fixed deposits have stood the test of time and continue to rule the heart of Indians. Our grandparents and then our parents and now to us – we all know it works as it’s reliable, convenient, and yields great investment benefits. But what exactly makes it so popular and indispensable a form of investment that has charmed generations of Indian households?
What makes fixed deposits so popular?
Indian middle class rose from 14% in 2004-2005 to 31% in 2021-2022. In other words, 1 in every 3rd Indian is middle class. The Indian middle class has always been described as one with limited disposable income left after meeting all financial obligations. The lack of disposable income predisposes investors to look for investment options with minimal or no risk at all. With the rise in the middle-class household in India, and the rising income, financial obligations have also risen with people seeking better education, health, and stress-free retired life. This makes most people averse to market-linked investment options. Therefore, this makes fixed deposits an ideal option for households over many generations as they offer maximum capital security at inflation-beating interest rates!
Individuals with an unstable source of income, including retired people, and senior citizens, can take advantage of monthly, quarterly, half-yearly, yearly, and interest at maturity – while keeping their investment safe. At the end of fixed deposit maturity, you acquire the capital, along with the accrued interest amount as well.
Additional features which make fixed deposit attractive and reliable –
No-risk investment: If there is one thing people, irrespective of age or generation gap agree upon is an investment without risk or security of capital. Since fixed deposits do not depend upon market fluctuations, they continue to yield the interest rate of returns till they mature – making them one of the most secure investment options.
Guaranteed returns: Saving and growing money by investing in fixed deposits guarantees that the investor will get the principal plus the interest amount back at maturity. With attractive interest rates, IndusInd Bank FDs are the perfect choice for risk-averse customers who wish to multiply their wealth.
Flexible tenure: Whether an investor is looking for 6 months to 10 years for online fixed deposits or 7 days to 10 years for offline fixed deposits – there are multiple tenure options as per the investor’s convenience. Once you choose your tenure, it becomes easy to determine what returns you can expect, allowing you to plan your financial future accordingly.
At IndusInd Bank, there is an attractive interest rate on fixed deposits for regular customers and an even higher interest rate for senior citizens. Choose from a flexible tenure and apply for an FD today to earn guaranteed attractive returns, and peace of mind.
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.
