Home Discover Journals Despite multiple high return options, FD continues to remain attractive. Here’s why.

Despite multiple high return options, FD continues to remain attractive. Here’s why.

By Finserv MARKETS - Aug 26,2019
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Despite multiple high return options, FD continues to remain attractive. Here’s why.

Prateek is an IT professional in his mid 30s, living in a metro city. Two days back, he got his salary. After factoring in the household expenditure, he sat down to think about a plan to invest the rest of the money for the long term. He had already bought life insurance and just enrolled for a family floater health insurance offered by his company. His aim was wealth creation, however he did not want to put all of his money in mutual funds. It could be risky. Above all, he needed money for the down payment of the house, he had been looking to buy for his family. Finally, he decided to invest in a fixed deposit, since it seemed the safest as well as most practical choice, given his circumstances.

A new survey by The Securities and Exchange Board of India, SEBI shows that Prateek is not alone. More than 95 percent of households across rural and urban India, prefer the humble bank deposit to other attractive alternate investments(1). A mere 10 percent of those surveyed, were invested in mutual funds and stocks. It was noted that the middle class saves more than those in the higher income bracket and they have a real perception of the risk associated with market-linked instruments. A fixed deposit is a safe choice for most investors across all economic classes. This can also be attributed to the current volatility in the market which has led to a revival of interest in FDs. And why not? They offer a host of benefits such as- higher liquidity, utmost safety, assured returns and attractive interest rates. Let’s have a look at some of the few:

Flexible tenure: Bank deposits do not have fixed tenures unlike tax saving FDs which offer higher returns but come with a lock-in period as do ELSS mutual funds. Fixed deposits such as those available on Finserv MARKETS, range from 12 months to a maximum of 5 years. You can choose your tenure depending on your financial requirements. Government savings instruments like PPF have a lock in period of 15 years, before which you cannot fully withdraw the whole amount, though you can make partial withdrawals after a seven year period.

Safety and security: Market-linked instruments such as mutual funds, stocks etc might seem alluring when it comes to returns, but they come with a higher risk than FDs. You might be left stranded in volatile markets, when stocks take a nosedive or shares start plummeting. A fixed deposit offers protection against such uncertainties and offers assured returns come what may. Certified by CRISIL and ICRA, reputed agencies in the finance industry, FDs are perhaps the most safest investment category.

Attractive interest rates: You no longer have to compromise wealth creation with the safety and security that FDs offer. You can avail an interest rate starting at 8 percent, upto 8.95 percent on a bank deposit available on Finserv MARKETS. So enjoy the best of both worlds, with interest rates starting at 8 percent.

Senior citizen benefits: A fixed deposit for senior citizens, like the one available on Finserv MARKETS comes with attractive interest rates, keeping their financial needs in mind. They re uire more liquidity to take care of monthly expenses or medical emergency in their sunset years and hence are are offered attractive interest rates.

To sum it up, the market may be flooded with investment options ranging from mutual funds, ULIPS, stocks, government bonds, PPF etc, but the good old bank deposit is here to stay. It has stood the test of time so far. However, the process of opening an FD is not as tedious as before. To open a fixed deposit on Finserv MARKETS, you need to fill your personal details online along with your nominee details, choose the amount to invest, tenure and the type of FD(cumulative or non-cumulative). Submit your necessary documents online and relax as they are verified and validated. That’s it. Pay the deposit amount online and the process is over. What’s more, you can track your deposit on your smartphone anytime, anywhere. Isn’t that great? So choose your peace of mind as your money grows safely in a bank deposit.


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522