Benefits of FD

Almost every one of us has a savings account. While a savings account gives you the benefit of liquidity, knowing your money is at your disposal, it earns a meagre interest. This interest could be lower than the rate of inflation, thus giving you little or no value in terms of growing your money. 

Which is why, you as an investor should look at other fixed income instruments that can help you grow your wealth, at the same offering considerable safety of your money. This is where a fixed deposit or FD comes in. It has been the most popular savings instrument among Indians and there are many reasons why. Let us see in detail.

What is a Fixed Deposit?

When you deposit a lump sum of money for a specified period with either a bank or a non-banking financial institution at an interest rate specified by them, it is termed as a fixed deposit. The rate of interest varies from one financial institution to another, however, it is higher than a traditional savings account in a bank.

As soon as the money is deposited, it starts earning interest based on the time frame of the deposit. A fixed deposit, by virtue of its name, means that money is locked in for the time period as specified by you and cannot be withdrawn before maturity. However, should you choose to make a withdrawal, it would attract a penalty that needs to be paid.

Who is eligible?

You need to be a resident Indian citizen to open an FD. A Hindu undivided Family(HUF), a family trust, clubs, societies, associations, sole proprietors, partnership firms and companies including group companies can also open a fixed deposit.

Types of FD

You can choose between two options depending on your financial goals. You may either want regular interest income or simply be looking at growing your wealth for a specific tenure without any need for regular income. Accordingly, you can choose the kind of FD from the ones below:

Cumulative fixed deposit: In this FD, the interest that you earn on the principal amount is compounded annually. This means that you can grow your wealth steadily and get the entire amount paid out at maturity along with the principal. Since there are no periodic payouts, you have a better chance at benefitting from the power of compounding to increase the value of your money.

Non-cumulative fixed deposit: Unlike the earlier one, in this FD, the interest that you earn on your principal amount is paid out at regular intervals as per your requirements. This could be monthly, quarterly, half-yearly or annually, as specified by you. It is ideal for those looking for regular income at specific intervals.

Advantages of FD

  • Higher interest rates: While offering you interest rates higher than a savings account, fixed deposits are a good way to make the idle money sitting in your bank account work. With returns starting from 8% to as high as 8.70% available on Finserv MARKETS, fixed deposits are an attractive option for those looking to get the maximum out of fixed income savings instruments.
  • Assured returns: There are many investment options which promise higher returns, but did you know that they come with even higher risks? So if your risk appetite is low, but still you want to reap considerable returns, fixed deposits are your best bet. You no longer need to worry about market fluctuations eating into your hard-earned money.
  • Stability: Fixed deposits available on Finserv MARKETS come with a stable ICRA MAA and CRISIL FAAA ratings. So rest assured you can relax and say goodbye to any worries about the erosion of your invested money.
  • Flexibility: Want to stay invested for the short term or long term or even in between? With tenures ranging from 12 months to 5 years, you can choose to park your money for a duration as per your financial goals and requirements giving you the flexibility of the time period to stay invested in an FD.
  • Faster online process: You no longer need to stand in long queues or visit your bank branch to open an FD. Technology has come to your rescue. Finserv MARKETS offers a hassle-free, and faster online process that enables you to apply for your fixed deposit. A one-time document upload is required after which you can easily track your FD online, anytime from anywhere.
  • Start small: You can open an FD with as less as Rs 25,000. This is beneficial for those who do not have huge amounts and still want to save and increase the value of their money.
  • Senior citizen benefits: Senior citizens can avail an interest rate of 0.35% over and above the prevailing interest rate, thus helping them earn more. This can be beneficial to them for their medical as well as day to day expenses.

How to apply?

On Finserv MARKETS, you can easily apply for an FD online right from the comfort of your home either on your smartphone or laptop. Log on to the website and fill your personal as well as beneficiary details. Then choose the amount you want to invest, type of plan and its duration. Upload the necessary documents required.

Once you have filled the form and submitted the documents, proceed to pay the FD amount either through or your debit card. This completes the application process. You can track your FD anytime and anywhere at the click of a button.

You can choose to either renew or withdraw your FD upon maturity. While renewal can be easily done online, the maturity amount is directly credited to your bank account. So, select the best fixed deposit for you depending on the duration you want to stay invested in as per your convenience.

Go for a higher rate of interest and possibly a longer tenure to get the best out of your money. Sit back and let your money grow in a fixed deposit, while it is protected from market fluctuations giving you capital protection like no other savings instrument. 

Happy Customers of Finserv MARKETS

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive. I want to protect it with the best available option. What amazed me was the full transparency, quick quotes and the attractive discount on the premium while choosing the annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Finserv Markets, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Orlando with just a click!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is to do a close study of the coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premia!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment with a No cost EMI on Bajaj Finserv EMI store just made my day!

Get home loan sanctioned online in 72 hours! Let's start!