Fixed Deposits are considered one of the popular ways to save money in India. They offer undeniable surety to investors. During financial uncertainty, FDs often stand out as a symbol of consistency. They also function as a reliable way to grow your savings. Besides, you can rest easy since you can have an accurate idea of how much their investment will increase over a particular tenure.

This is because you can conveniently calculate the maturity amount of your Fixed Deposit Account before opening it. Let us understand more about an FD and the reasons that make a good investment option.

About FDs

FDs let you invest a certain amount of money with your bank for a fixed period. When opening an FD, you effectively lend money to the bank. In return, the bank offers you an annualised rate of interest that stays consistent during the term of your deposit. This Fixed Deposit interest rate is one of the most important variables influencing the reliability and safety of FDs.

When opening your FD, you can select a tenure for your deposit that matches your monetary goals. This may range from approximately seven days to five years and above. At maturity, you receive the total investment that you make along with the interest earned. FD holders can also opt to receive the interest they earn on an annual, quarterly, monthly, or half-yearly basis.

Reasons to open an FD

• Offers assured returns

FDs offer an assured return on your investment. They are not subject to market shifts. Instead, they provide a stable rate of interest, which is fixed when you open the deposit. Since the FD rates are fixed, you can better determine your returns and plan your finances.

• Regulated by the RBI

The RBI sets regulations and guidelines that banks need to follow when offering FDs. These ensure banks maintain a particular level of financial stability and credibility. Consequently, it provides investors with another layer of assurance when opting for an FD using iBanking.

• Insured by the DICGC

The DICGC insures FDs for up to Rs. 5 lakh.

• Benefit of customisable tenures

FDs come with various tenure options. This lets you customise your deposit when using your Banking app to open it to meet your financial objectives.

• Offers liquidity

While FDs are recognised for their fixed returns, they also provide scope for liquidity management. They let you invest your money for a fixed period and earn interest at fixed FD interest rates. However, you also have the option of premature withdrawal with most FDs if you need funds before the end of your term. Although you may need to pay a fee, you can access your money if required.

Conclusion

FDs let you invest and grow money while enjoying the benefits of a dependable and safe investment instrument. So, if you want to enjoy the perks of this popular investment choice, you can open this Term Deposit with your preferred bank.