A fixed deposit is an investment instrument through which you can deposit your funds for a tenure of time with a bank or other financial institution and earn interest from it. The rate of interest you earn on an FD is higher than that on a savings deposit, and assured deposits ensure that this kind of investment instrument is much safer than investing in the equity market. If you have surplus funds that you would like to invest in a secure, risk-free manner, invest in a fixed deposit on Finserv MARKETS and earn returns with interest rates starting from 8%.
There are two types of fixed deposits. These are:
Cumulative Fixed Deposits: With a cumulative fixed deposit, your interest is reinvested with the principal amount in the deposit. The amount you receive on maturity of the deposit is the sum of your principal amount invested and the interest accumulated. These kinds of fixed deposits are best suited for those investors who do not require a regular interest payout but would want higher returns on their FDs.
Non-cumulative Fixed Deposits: Here, the interest payout can be done on a monthly, quarterly, half-yearly or yearly basis. These deposits are ideal for those looking to meet their regular expenses through these interest payouts. However, the frequency of payouts does reduce the amount received on maturity of the deposit.
There are several advantages to holding a fixed deposit, such as:
Assured Returns: Unlike with instruments such as equity stocks, investing in fixed deposits ensures guaranteed returns. Fixed deposits are guaranteed by the Union government, so investors can rest assured that they will receive their payouts even if their bank goes into liquidation.
Long-term Financial Goals: Your long-term financial goals can be achieved by investing in a fixed deposit on Finserv MARKETS. It is a good, risk-free investment instrument that you can utilise to build up your corpus over a period of time to meet a certain goal.
Easier to take loans: Many banks and lenders will agree to provide loans against fixed deposits you have with the institution or even elsewhere.
Encourages Savings: While everybody knows that savings are essential, not everybody can save as much as they should. However, investing in a fixed deposit ensures savings since a large number of funds are being locked up for a fixed tenure of time.
While a fixed deposit itself guarantees assured returns over its tenure period, there are several ways in which you can earn more through a fixed deposit. Read on to learn how you can get the maximum benefit from investing in a fixed deposit:
Start your Fixed Deposit Online: Opening a fixed deposit online allows you to browse through multiple options and choose the bank that is offering the highest interest rates and hence, returns. Additionally, most banks also offer higher rates of return on the fixed deposits started online; as opposed to through their offline branches. With Finserv MARKETS, your fixed deposits can earn interest starting from a rate of 8%, which can increase up to 8.7%.
Opt for Cumulative Fixed Deposits: While non-cumulative fixed deposits ensure regular payouts, a cumulative fixed deposit ensures a higher amount is available to you upon maturity. With a cumulative fixed deposit, you can build a bigger corpus since the interest payable to you is being re-invested along with your principal amount.
Do Not Stop your Fixed Deposit Midway: Most banks and financial institutions allow for fixed deposits with a fixed tenure of time. This means that if you choose to withdraw your funds before the maturity period, you may have to pay penalties for premature withdrawal. This will deplete the maturity amount available to you once the period of the fixed deposit has ended.
Start Fixed Deposits in your Parents’ Names: If your parents are senior citizens, you can start a fixed deposit in their names and earn higher rates of interest which are available exclusively for senior citizens. Investing in fixed deposits on Finserv MARKETS allows you to benefit from rates of interest which are 0.33% higher than the existing market rates.
Pick Tax-saving Fixed Deposits: There are several kinds of fixed deposits available to investors, and while some allow for tax-savings, others do not. Make sure to thoroughly browse through the options available to you, before you invest in a fixed deposit, and pick the one that earns you the highest tax-savings benefits.
Starting a fixed deposit account on Finserv MARKETS is open to all Indian citizens residing in the country. Fixed deposits can also be opened by a Hindu Undivided Family, sole proprietors, partnership firms and companies as well as clubs, societies, associations and family trusts. The only documents required include the latest photograph of the applicant and KYC documents. While this sounds simple enough, opening the fixed deposit is easier still as it can be done in only 3 steps on Finserv MARKETS. Read on to learn how you can start investing in your future today!
Step 1 - Fill in the personal details of the applicant as well as a trusted beneficiary. Browse through the fixed deposit options available to you and choose the best one for yourself, including details of your principal amount, plan type and tenure.
Step 2 - Upload the documents required to get started with your fixed deposit. Keep the documents handy before you start the process so that you don’t have to waste time looking for them when they are required.
Step 3 - The last step of opening a fixed deposit online after you have filled in all details and uploaded your documents, is the payment of the principal amount.
Once the fixed deposit has been opened on Finserv MARKETS, you can keep a track of your returns from anywhere at any time.