Both fixed deposits and savings account are safe and reliable instruments to park your surplus funds. But fixed deposits offer a host of advantages as compared to savings accounts. These include a higher rate of interest, greater flexibility in investment and managing your funds along with tax benefits and other convenience features. Read on to know about FDs made available on Finserv MARKETS.
A savings account is a deposit account opened at a bank or a financial institution, which provides a moderate interest rate. Usually, financial institutions ask customers to maintain a requisite balance in their account, failing which certain charges are levied. But, one can also opt for a zero balance, Basic Savings Bank Deposit (BSBD) account. Cheque and passbook facility along with ATM/Debit card and internet banking services are also provided in a savings account. Through internet banking, you can avail the free facility for credit of money by modes of electronic payment like NEFT and RTGS. Most banks cap the withdrawal of cash through ATMs/Debit card within 24 hours. Interest rates on a savings deposit can range from 2.5% to 4% on an annual basis. Savings accounts provide a good option to people for depositing their funds on a short-term basis. You can easily liquidate your savings deposit for short-term requirements or emergencies without any tax implications.
Fixed deposits are investment schemes where your money is locked into a specified tenure ranging from one year to five years with predetermined annual interest rates which can vary between 6.60% to 7.95%. On Finserv MARKETS, you can invest in a fixed deposit scheme having tenors ranging from 12 months to 60 months. To put it simply, fixed deposits are the schemes with dual benefits of being safe modes of investment which provides additional income to depositors through high fixed deposit interest rates.
Here are the reasons why fixed deposits are always a better investment option.
1. Easily accessible touch points.
2. Simple and transparent policies.
3. Detailed SMS and email communication to customers while booking a fixed deposit, from request to maturity.
4. Scanned copy of all the documents submitted by you, available online for easy access.
Before zeroing in a fixed deposit, you must ensure that the financial institution has the requisite credit worthiness. On Finserv MARKETS, you can select fixed deposits, which have excellent ratings from leading analytical companies like CRISIL and ICRA. Bajaj Finance Fixed Deposits has the highest stability rating of ‘FAAA’ by CRISIL and ‘MAAA’ by ICRA. In 2019, Bajaj Finance Ltd was assigned a long-term rating of ‘BBB-/Stable’ and a short-term rating of ‘A-3’ by S&P Global Ratings. Here, you can receive attractive and assured rates of interest along with considerable flexibility in choosing the right fixed deposit for your unique financial requirements.