How and where you invest your money can make a difference in the amount of risk involved and overall return received on the investment. If you’re focused on building long-term wealth, risk management and a sensible strategy are paramount. As they say that a perfect investment plan will make your money work for you instead you work for money. Investing in the equity market can lead to your wealth growing manifolds but it also has some limitations as its volatility cannot be overlooked. If this unpredictable nature of the share market keeps you on your toes, then you must consider investing in fixed deposits, one of the best investment avenues for those looking for an assured return.
While the equity market at times leaves you high and dry, fixed deposits, available on Finserv MARKETS, not only protect you but offer assured returns too. Fixed deposits, on Finserv MARKETS, offer interest rates as high as up to 8%. Also, senior citizens get additional 0.35 per cent interest on their FDs. Furthermore, they’re backed by ICRA’s MAAA and CRISIL’s FAAA ratings, for the safety of your investment.
Dinesh Singh, a 32-year-old Delhi-based teacher, has put his money in fixed deposits, available on Finserv MARKETS, to make his dreams come true. He has parked his extra cash in FD, and now earning dividends off it. He says that FDs serve as better alternatives to investing in the equity market. Sharp climbs and quick drops make equity markets chart look a lot like a rollercoaster, and Dinesh was not up for that. Now after investing in FDs, he’s not afraid of losing money due to market volatility.
What is a fixed deposit?
A fixed deposit or ‘FD’ is one of the most popular and risk-free ways to save money while guaranteeing assured returns post-maturity. It offers financial stability when compared to investments options like equities or mutual funds. However, the rates of interest on fixed deposits are less than those on equities and mutual funds but higher than what is offered on savings accounts. When you invest a certain amount of money in a bank for a fixed period, available on Finserv MARKETS, you get the amount you have invested along with compound interest.
Benefits of Fixed deposit
Fixed deposits are not risky investments as they’re not affected by market fluctuations. Irrespective of the amount deposited in an FD, it will earn you interest but the rate of interest may depend on the tenure you have chosen. All you need to do is to wait for your returns to mature. You can also predict the returns you will earn after your FD matures at the time of investing in it. This is probably the reason more people like to keep a part of their investment in fixed deposits.
Easy investment option
FDs are perfect-fit for anyone regardless of his age or skills. To invest in fixed deposits and grow your wealth through it, you don’t need to have any prior experience of making money from FDs. They’re easy investment options. You just need to put a lump sum in your bank at an agreed rate of interest. At the end of the tenure, you get back your principal plus earned interest.
FDs offer the convenience of flexible tenures to investors as per their financial requirements. You can invest your money for a time period ranging from 1 week to 10 years. You can choose a short-term Bajaj Finance fixed deposit offered on Finserv MARKETS which you can withdraw within a week or a long-term where you wait for years until it matures. It helps you in planning for your future responsibilities and aspirations in advance. You can also have multiple FDs in the same bank at the same time for the same or different tenures.
Higher interest rate
When you invest in FDs, one of the most important things to consider is the interest rate. Fixed deposits attract higher interest than savings accounts, enabling you to build a large corpus. In a savings account, you can earn around 6% interest, whereas, in an FD account, interest rates start from 7%. Also, the interest rate is higher for FDs of longer tenures. The interest rates on FD plans can even go up to nine per cent. Once you add money to your FD account, the interest remains the same throughout the tenure.
Helpful during cash crunch
During a financial emergency when you are in need of money, the fixed deposits can be broken and the amount can be withdrawn. However, the banks may charge a penalty for premature withdrawal. Also, many banks offer loans against FDs. Up to 90% of the deposit can be availed as loan. But to reap the best returns, you should wait for your tenure to end.
Choose FD type as per your needs
There are two types of fixed deposits that you can opt for -cumulative and non-cumulative. If you want monthly or periodic returns, you can go for non-cumulative FDs. However, if you seek returns only after the lapse of the tenure, then you should choose Cumulative FDs.
Excitement builds as your investment in equity market increases, but fear can also set in if it drops abruptly during volatile times. So, if you want assured returns then fixed deposits are best for you.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!