Fixed deposit investments are a prudent instrument for financial planning in India, appealing to generations with their simplicity and security. The growing popularity of this instrument can be attributed to several factors, making it a preferred choice for investors from diverse backgrounds.
Primarily, the major benefits of fixed deposits include security and guaranteed returns, which are highly valued in the socio-economic context of India. With the evolving financial vertical, the importance of fixed deposits has only grown, thanks to their ability to balance risk and reward effectively. So, is FD a good investment? Read on to clear out doubts about what is FD and how it works. Also, know the distinct advantages of a fixed deposit account.
How does a fixed deposit work?
An FD is a financial instrument provided by banks and offers high-interest investments than a regular savings account, until the given maturity date. It is considered as one of the most common and safest investment options. When you invest in an FD, you agree to deposit a lump sum of money with a bank for a fixed period. This period can range from a few weeks to several years, depending on your financial goals. During this tenure, your money earns interest at a predetermined rate, which is usually higher than that of savings accounts.
Advantages of a fixed deposit
Guaranteed returns on investment
FDs, unlike market-linked investments, provide guaranteed returns, making them a dependable investment option. This assurance is especially desirable in an uncertain economic situation. Furthermore, predictability aids in accurate financial planning, particularly for long-term goals.
As they are immune to market fluctuation, FDs are regarded as one of the safest investment alternatives. If you are a cautious investor, you will appreciate this benefit. The guarantee of the primary amount offers a degree of dependability and confidence, which is an important element, particularly if you are risk averse.
You may customise the period of your FD, which can range from a few days to several years, allowing you to match your investment to your financial objectives. This adaptability means that you may lock in cash for the ideal time period for your financial timeline.
Convenience and comfort
Opening and maintaining a fixed deposit account is simple, making it accessible to everyone, regardless of financial knowledge. The increased availability of internet banking services streamlines this process even more, allowing FD management from the comfort of your own home.
Attractive interest rates for seniors
Senior citizens frequently receive greater interest rates on FDs, making them a profitable alternative for post-retirement income. This special treatment assists older people in maintaining financial stability during their retirement years.
IndusInd Bank fixed deposit: A smart wealth generation financial product
IndusInd Bank’s fixed deposit stands out as one of the premier investment products for wealth generation. The benefits and features of IndusInd FD include –
You can earn a competitive fixed deposit interest rate of up to 7.5 per cent per annum , which is among the best in the industry.
Hassle-free instant booking
Opening an FD account with IndusInd Bank is a seamless process, requiring only PAN and Aadhaar details.
Flexible interest payment and auto-renewal options
IndusInd FD provides distinct options for interest payment, including monthly, quarterly, half-yearly, yearly, or at maturity, along with an auto-renewal facility.
Instant KYC with video facility
The innovative video KYC feature allows for quick completion of KYC formalities, enabling you to book an FD of any amount conveniently.
Is a fixed deposit a good investment?
The time-tested appeal of FDs, with innovative features, continues to make them a go-to financial investment choice. They come with a blend of traditional financial wisdom and modern convenience. This makes them an ideal choice if you are one of those seeking safety, stability, and satisfactory returns in your financial journey.