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Are fixed deposits an outdated concept?

By Finserv MARKETS - Aug 1,2019
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Are fixed deposits an outdated concept

Fixed deposits are investments options provided by banks and non-banking financial companies that give you the option to deposit money in your savings account for interest.

The money starts accumulating interest once it is invested, and at the time of maturity, you get the amount back with added interest. One of the features that define a fixed deposit account is that you cannot withdraw the money before the maturity period. In case you do decide to withdraw, you may have to pay a penalty.

Are fixed deposits an outdated concept?

Many of the present-day investment schemes are explicitly designed to cater to the taste of millennials — people who attained adulthood in the early 21st century and have grown in a digitally connected world. Besides, a large number of millennials are entering the job market.

A survey conducted by YouGov-Mint revealed that one-third of working millennials were investing only in risk-free investments. As far as older millennials are concerned, 48 percent of them invested in equities — only 4 percent of younger millennials invested in equities, revealed the data.

Are fixed deposits an outdated concept
With so many new investment opportunities coming up, one has enough room to wonder if fixed deposits are an outdated concept. However, It is also quite clear that millennials for whom the investment market is also being actively moulded, are taking an interest in investment, and that the fixed deposit might just not be dying yet.

Here are some of the critical features of fixed deposit

  • Fixed deposits on Finserv MARKETS let you earn higher interest — upto 7.95% return — on your surplus funds; the gains that are received on fixed deposits are not generally affected by market-linked fluctuations.
  • FDs let you earn a higher rate of interest and are a better option than just having the money piled up in a savings account.
  • If the tenure is selected thoughtfully, a fixed deposit can help you achieve short-term goals, such as the education of your children.

Who should get a fixed deposit?

You should get a fixed deposit account if you are a millennial who is looking forward to investing risk-free, wanting secured returns, and financial security. It is also a viable option for you if you’re going to park some of your funds at a safe place or want to build a contingency fund, also known as the rainy day fund.

Which fixed deposit to invest in?

Fixed deposits on Finserv MARKETS help you grow your savings with assured safety, promising you a high-interest rate. The attractive rate of interest of up to 8.95% lets you quickly multiply your savings. FDs offers some unique benefits such as a higher rate for senior citizens by promising an additional return of 0.35 percent over the regular interest rate on fixed deposits. Besides, senior citizens also have the option to choose periodic payments out of their fixed deposit value.

If you are looking to start cheap without investing a lot of money, then you must look at FDs on Finserv MARKETS as an option as they let you have a fixed deposit with a minimum deposit amount of Rs 25,000.

Bajaj Finance Fixed Deposit is the only Indian NBFC with an international rating of ‘BBB’ by S&P Global, which makes it one of the most secure places for young investors. If you invest in fixed deposits, you get the backing of the highest stability ratings with CRISIL’s FAAA/Stable rating and ICRA’s MAAA (stable) score, which ensures that the money you invest in your fixed deposit is never at risk.

When your fixed deposit matures after you invest in fixed deposits provides you with the option of auto-renewal so that you no longer have to go through the hassle of filling the same forms again and again.

Conclusion

No, fixed deposits are not an age-old concept — not yet. With assured returns that are not affected by market fluctuations and features such as online loans without liquidating the savings. If you invest in fixed deposits, then you can be assured that it is a perfect way of starting your investment career if you have managed to accumulate some savings over time. If you want to know how much returns you will receive on your fixed deposit, then you should use the Bajaj Finance FD calculator which will help you evaluate and calculate your gains in advance — before you actually make an investment.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522