What is a Fixed Deposit?

A fixed deposit is an investment instrument that pays guaranteed returns which are higher than those available for a savings account, and is more secure than an investment in the equity market. Since fixed deposits in India are guaranteed by the Central Government, these are extremely safe investment options that people can invest in to fulfil their short-term and long-term goals. Interest rates start from 8% and can even go up to 8.79% for fixed deposits opened on Finserv MARKETS. If you are a senior citizen, you are eligible for interest payouts at rates which are 0.35% over the existing market rates. Since interest rates payable on fixed deposits are fixed at the interest rate at which it was started, the returns you get on this investment will never be affected by fluctuations in the market. By investing in a fixed deposit on Finserv MARKETS, you can choose an investment period ranging between 12 months to 5 years.

Types of Fixed Deposits

There are two main types of fixed deposits, on the basis of frequency of interest payouts, namely, cumulative deposits and non-cumulative deposits. Cumulative fixed deposits are ideal for those looking to build a large corpus over a period of time, and their interest payouts get re-invested along with their principal amount over frequent intervals decided by the depositor. If you invest in a non-cumulative fixed deposit, you can choose to receive your interest payouts at frequent intervals as decided by you. However, this decreases the amount you receive as corpus at the time of the deposit’s maturity.

Advantages of Fixed Deposits

There are many advantages to investing in a fixed deposit, which are universally acknowledged as the safest investment instrument which also provides high returns, irrespective of market conditions. There are several benefits to investing in a fixed deposit, and you can read about these below.

  • Instills the Habit of Saving: While savings are an essential component of your income, not many people are in the habit of saving up for a rainy day. When you invest in a fixed deposit, you instill the habit of saving since the deposit has a fixed lock-in period which ensures that funds can’t be withdrawn without paying substantial penalty charges.

  • Achieve Long-Term and Short-Term Goals: The tenure of a fixed deposit can vary significantly. For instance, if you open a fixed deposit on Finserv MARKETS, you can choose a tenure for your fixed deposit ranging from 12 months to 5 years. You can also open multiple fixed deposits with different tenures, which can help you save up for different goals.

  • High Interest Rates: Interest rates payable on fixed deposits are determined at the time of making the deposit and do not change during the tenure, despite market conditions. Thus, fixed deposits are able to ensure high interest rates, even during dips in the market. If you invest in a fixed deposit on Finserv MARKETS, you can earn interest at rates starting from 8% which can go up to 8.7%. As a senior citizen, you can easily also avail interest rates which are 0.35% over existing market rates.

  • Secured Investment: Fixed deposits in India are guaranteed by the government, which makes them the safest investment instrument. For a really secure experience, invest in a fixed deposit on Finserv MARKETS which enjoys stable ratings including the ICRA MAAA and CRISIL FAAA rating.

  • Dealing with a Cash Crunch: Sometimes, financial emergencies can crop up unexpectedly resulting in a need for quick cash. A fixed deposit can help you out at such times, since you can make partial premature withdrawals out of your corpus. However, these tend to attract penalties. Another way in which fixed deposits help deal with an unexpected cash crunch is by letting you avail a loan against your fixed deposit.

Benefits of Online Fixed Deposits

These days, with digitisation permeating into all our daily routines, investment instruments have also moved online. You can open a fixed deposit account online on Finserv MARKETS in only three steps, and enjoy several benefits which are listed below.

  • More Options to Browse Through: When you approach a bank or financial institution in person, you are given the options available with that specific institution. However, when you wish to explore your options, it’s much easier to browse through the options available on multiple platforms and choose the fixed deposit that aligns best with your interests and requirements.

  • Increased Transparency: When you open a fixed deposit online on Finserv MARKETS, you can access information on your returns from anywhere at any point of time.

  • Increased Convenience: When you open a fixed deposit online, all the processes become more seamless and convenient since they can all be accomplished with the click of a few buttons. You can make your payments, view your returns, choose the tenure of your investment and perform many other related and unrelated functions by operating the fixed deposit online.

  • Higher Interests: If you opt to open a fixed deposit online, you are likely to receive higher rates of interest than if you had chosen to approach the physical branch of the bank or financial institution you are starting the deposit with. Banks and financial institutions often also offer other additional benefits to customers operating their fixed deposits online.

  • Hassle-free Procedures: Opening a fixed deposit online allows you to experience hassle-free proceedings including for verification of your KYC documents. You need only upload your documents once and everything else is taken care of.

How to Open Fixed Deposit Online

Now that you know the benefits of opening a fixed deposit account online, it’s best to know how to do it too. Read on below to learn how you can open a fixed deposit on Finserv MARKETS in only 3 steps.

Step 1 - Fill in your own details along with details of the beneficiary. Also choose your fixed deposit amount, the tenure you wish to deposit it for as well as the plan type.

Step 2 - Upload the documents being asked for to facilitate opening of your fixed deposit. It is useful to keep the documents handy before you begin this process to ensure hassle-free operations.

Step 3 - Once you have filled in your details, chosen the conditions of your fixed deposit and uploaded the requisite documents, you need only make the payment of the principal amount to get the fixed deposit functional.

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