You require money to fulfil all your needs, including luxuries and essentials. It is necessary to keep track of your expenses and savings to eliminate financial problems in future. Every person should earn and save money to lead an independent life and cater to their needs without dependency.
Banks have introduced a scheme for investors to earn the highest interest on FD, where you get a fixed interest rate during the entire investment tenure. It is also higher than the Regular Savings Account. However, the money deposited gets locked in for a fixed period, which you can decide according to your investment goals.
Why are they important?
Over the years, Fixed Deposits in India have evolved into a highly flexible and versatile product with many benefits. They promote savings and hold the invested amount for a fixed time, inadvertently saving money as premature withdrawals lead to penalties, encouraging savings.
Otherwise, you can also open a Recurring Deposit for six months to 10 years, where you invest a fixed monthly amount and maximise savings by earning interest on it. You can choose to receive the interest at regular intervals until it matures. There is no specific amount to invest in this deposit.
Fixed Deposits give assured returns on investment. They are pre-decided and fixed for a specific tenure. Thus, equity market fluctuations and other factors do not impact expected returns, making them one of the safest investment options.
These investment products offer the flexibility of choosing investment tenure from seven days to 10 years. Therefore, an investor can choose tenure as per the requirements. You can open it online to save time, travel, and effort. Premature withdrawals attract penalty charges on the principal and interest rates on FD. Therefore, assess your tenure and investment amount wisely.
Changes in the banking system have relieved customers from standing in long queues for hours altogether for minor tasks like checking account balances or fund withdrawals. You can utilise the Banking app to meet all your financial needs, whether addressing a query, checking your passbook, transferring funds, or tracking bill payments.
Whom does it suit?
These investments are ideal for risk-averse investors as they do not link with market conditions. You earn interest over a tenure of six months to 10 years. You can select the interest payout frequency if you invest in FD or RD. You can earn quarterly, annual, and monthly interest on FD and RD.
Although both deposits are similar, each has features that can benefit you depending on your goals. RD is an easy investment option as you deposit small amounts over time. On the other hand, Term Deposits are more flexible in terms of interest payouts. You can also save taxes with a five-year Tax-Saver Deposit. Wait no longer to invest and achieve your financial goals.