Are Fixed Deposits (FD) better than mutual funds?

Posted on Monday, May 22nd, 2023 | By IndusInd Bank

In today’s unprecedented times, the market has become increasingly volatile, making it challenging for investors to determine where to invest their savings. With so many investment options available, it can be overwhelming to decide where to put your money. It is crucial to invest your savings to make sure they are working for you, rather than leaving them idle. 
 
One option that many investors turn to is mutual funds. Mutual funds pool money from several investors and invest in a portfolio of stocks, bonds, or other securities. While they offer the potential for high returns, mutual funds are also subject to market risks. The value of your investment can fluctuate depending on market performance, and you may end up with less than you started with. 
 
On the other hand, fixed deposits (FD) are a popular investment option that offer stability and security. With an FD, you deposit a fixed amount of money with a bank or financial institution for a set period of time. In return, you earn a guaranteed rate of interest on your investment. 

FDs offer several advantages over mutual funds

Risk-Free: They are much less risky since the interest rate is fixed and guaranteed. This means you know exactly how much you will earn on your investment, and there is no risk of market fluctuations affecting the value of your savings.  
 
Flexible: Another advantage of FDs is their flexibility. You can choose the term of your deposit, ranging from a few months to several years. This allows you to tailor your investment to your specific needs and goals. Additionally, FDs offer the option of receiving interest payments at regular intervals, providing a steady source of income. 
 
Insured: FDs are an excellent option for those who want to invest their savings without taking significant risks. Unlike mutual funds, FDs offer a guaranteed rate of return, making them an attractive investment option for risk-averse investors. Additionally, FDs are insured with the DICGC scheme, which means that in the unlikely event that the a financial institution goes bankrupt, your money is protected. 
 
Simple: Since the returns of FDs are fixed, you do not need to constantly monitor the market fluctuations. This makes FDs a low-maintenance investment option, requiring minimal effort to manage. 

IndusInd Bank Fixed Deposits and Savings Account

IndusInd Bank offers a range of financial products to meet the needs of its customers, including fixed deposits (FD) and savings accounts. Both options come with attractive interest rates and can be opened online, without any bank visits or lengthy paperwork. 
 
With IndusInd Bank’s fixed deposits, you can enjoy a fixed rate of return on your investment for a set period of time. You can choose from a range of tenures and interest rates to suit your needs. Additionally, with IndusInd Bank’s online application process, you can book an FD from the comfort of your own home. 
 
IndusInd Bank Savings Account is another excellent option for those looking to save and earn interest on their deposits. With Video KYC, you can open a savings account quickly and conveniently from anywhere. Additionally, you can even pick an account number of your choice with IndusInd Bank’s savings account. 
 
Both the IndusInd Bank FD and savings account come with attractive interest rates that help you grow your savings over time. Additionally, with the convenience of online account opening, you can open and manage your accounts with ease.

Conclusion 

While mutual funds may offer higher potential returns, they come with market risks that can leave investors vulnerable. In these uncertain times, it is essential to prioritize stability and security. FDs offer a guaranteed rate of return and are a low-maintenance investment option that provide peace of mind. If you’re looking for a safe and reliable way to invest your savings, FDs are an excellent option to consider. 

IndusInd Bank Savings Account and Fixed Deposits are excellent options for those looking to save and grow their money. With attractive interest rates and easy online account opening, they offer a convenient and hassle-free way to manage your finances.  

So, don’t wait! Click here to open a savings account with IndusInd Bank and click here to book an FD. 

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.