What is a Fixed Deposit?

A fixed deposit is one of the most popular investment instruments globally, owing to the high amount of security it provides to investments. Fixed deposits provide assured returns to investors, at interest rates which are higher than the interest rates provided on savings accounts. While fixed deposits are usually invested in for a fixed tenure, fixed deposits opened on Finserv MARKETS let you choose an investment period ranging from 12 months to 5 years. These fixed deposits come with high ratings, including the stable ICRA MAAA and CRISIL FAAA rating, which ensures security for the invested amount. By investing in fixed deposits on Finserv MARKETS, you are privy to the highest returns, with interest rates starting at 8% and going up to 8.7%. If you are a senior citizen, your interest rate is further hiked by 0.35% over and above the market rates. 

Benefits of Fixed Deposits

There are several advantages to investing in fixed deposits, as the benefits they provide are enormous, even when market conditions are tumultuous. These benefits include:

  • Guaranteed Returns: When you invest in a fixed deposit in India, your investment is guaranteed by the Indian government itself. You can invest in a fixed deposit on Finserv MARKETS, whose instruments have received stable ICRA MAAA and CRISIL FAAA ratings; which ensures additional security of your deposits. The return on investment while investing in a fixed deposit is going to be in accordance with the interest rate that prevailed in the market at the time of you making the deposit. This means that, despite market fluctuations, your investment will not be affected.

  • Ideal for both Long-Term & Short-Term Goals: The fixed deposits you open on Finserv MARKETS offer flexible tenures, ranging from 12 months to 5 years. You can open multiple fixed deposits, which can differ in their tenures, in order to meet different goals. Your long-term goals could be met through the corpus accumulated from the fixed deposit with the longer tenure while goals over a shorter time frame could be met through fixed deposits with shorter tenures.

  • Higher returns with no Compromise on Security: Savings accounts are considered a safe investment, but the interest rates payable on fixed deposits are much higher than those on a savings accounts. Investment instruments that offer significantly higher returns, such as equity stocks, suffer owing to fluctuations in the market and are not considered very secure. However, by investing in a fixed deposit, you get the best of both worlds because not only are your returns high but your investment also remains safe.

  • Avail Loans against your Fixed Deposit: In case of a liquidity crunch, you can always apply for a loan against your fixed deposit. This not only allows you to tide over your immediate financial crisis, but also lets you keep your investment untouched.

  • Early withdrawal to meet Emergency Cash Needs: You can always break a fixed deposit to meet your emergency cash flow needs. However, most early withdrawals on fixed deposits attract a penalty so make sure to check that before you withdraw from your fixed deposit.

Types of Fixed Deposits: Cumulative & Non-Cumulative

There are two types of fixed deposits, which are differentiated on the basis of frequency of payouts. The two types are namely, cumulative and non-cumulative deposits.

Cumulative Deposits:

  • When you invest in a cumulative fixed deposit, you do not receive interest payouts at regular intervals.

  • The interest your deposit accrues is re-invested along with your principal amount of investment.

  • You are eligible for a much larger corpus at the time of your fund’s maturity, as compared to non-cumulative fixed deposits, when you invest in a cumulative deposit.

  • Cumulative fixed deposits are known as money multiplier schemes, and are ideal for individuals who are not looking for regular interest payouts.

Non-Cumulative Deposits:

  • When you invest in a non-cumulative fixed deposit, you receive interest payouts at fixed intervals decided by you.

  • You can receive interest payouts monthly, quarterly, half-yearly or even at annual intervals.

  • The higher the frequency of your payouts, the lesser is the corpus you receive at the time of maturity of your non-cumulative fixed deposit.

  • Non-cumulative fixed deposits are ideal for people who wish to run regular expenses through the interest payments payable at regular intervals, such as pensioners.

Open Fixed Deposit Online

You can open a fixed deposit from the comfort of your home, by completing the process online, through Finserv MARKETS. If you invest in a fixed deposit on Finserv MARKETS, you can start your deposit in only 3 steps. Once you have done this, you will be able to access information on returns on your fixed deposit from anywhere at any point of time. You just need to be an Indian citizen residing in the country to open a fixed deposit with Finserv MARKETS. Others that can open fixed deposits on the platform include Hindu Undivided Families, sole proprietors, partnership firms, companies, clubs, societies, associations and family trusts. Read on to learn how you can enjoy this increased convenience and transparency with your investments.

Step 1 - Fill in your personal details, along with details of your beneficiary for the fixed deposit. You also need to choose the principal amount of your FD, the plan type as well as the tenure you are investing for.

Step 2 - Upload the KYC documents that prove your identity, and are essential for opening a fixed deposit. It is advisable to keep these documents handy before you begin this process so that you do not spend any time searching for these documents when required.

Step 3 - Once you have completed the form, fill in your personal details, identified the fixed deposit type you are looking to invest in and have submitted the requisite documents; all you need to do is pay the deposit amount. Completion of the payment is the last step in finishing up the application for opening up a fixed deposit on Finserv MARKETS.

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