Are you looking for a secure medium to save and grow your money? Are you averse to risk and hesitant to invest your life savings in a volatile market? If yes, then you must consider opting for a fixed deposit (FD) plan.
A fixed deposit is one of the safest ways to grow your savings and meet your life goals with ease. This risk-free investment instrument allows you to deposit your money and get an assured return on it.
Benefits of a Fixed Deposit
If you need more convincing, here are some well-known benefits of having a fixed deposit.
Safety and Stability: Fixed deposits offer high stability and are safe instruments of investment
Guaranteed Returns: Another reason to invest in an FD is that the returns are assured and there is no loss involved
Not Affected by the Market: FDs offer stable returns since, unlike equity, they are now affected by the fluctuations of the market
Renewable: A fixed deposit can also be renewed easily and you can actually get additional benefits on renewing it
Eligibility Criteria
To open a fixed deposit account, you must submit the following documents to the bank -
Identity Proof: You can submit your passport, driving license, Aadhar, PAN card or any other government ID as your identity proof.
Address Proof: You may submit the address proof in the form of passport, bank statement with a cheque, telephone or electricity bill.
Factors to Keep in Mind While Choosing a Fixed Deposit Plan
Before investing in an FD, there are some factors that you must consider to get the best fixed deposit plan for yourself.
Interest Rates
The most obvious factor to consider while choosing a fixed deposit plan is the rate of interest offered by the provider. The rate of interest depends on multiple factors including the deposit tenure and amount, varying across banks.
Make sure to compare the interest rates offered by different institutions before settling for one scheme. Look for a good plan that offers a high rate of interest on your deposit for maximum profit. In fact, some banks such as IndusInd Bank also offer special schemes for senior citizens.
Interest Payouts
Another point to consider while choosing an FD scheme is the frequency of the interest payout. Some plans have monthly payouts and some have quarterly, half-yearly or even annual payouts. Choose the plan with a frequency that is suitable for you.
Credibility of Bank
It is important that you consider the most credible scheme and provider before depositing your hard-earned money. A high-interest rate is tempting but a credible bank should be the biggest point to consider. Look for an ‘A-rated’ offered by a reputed organization and good ratings.
Tenure
In addition to the rate of interest, you must check the deposit tenure of a fixed deposit scheme. The lock-in period for an FD is the time period in which you cannot access or withdraw the money you have deposited. This tenure can vary from scheme to scheme and thus, you must choose the one that has a tenure period that suits your needs. Keep your goals in mind while choosing the deposit tenure period.
Penalty Rates
There are times when due to some emergency you might have to withdraw money from your FD before the end of the lock-in period. Many banks charge a penalty if you break the fixed deposit before its maturity and others simply reduce the rate of interest. Therefore, you need to consider and analyze the penalty rates before making the choice. You can also opt for a plan that offers the option of a premature exit but it will fetch you lower returns.
Overall, a fixed deposit is a safe yet rewarding investment avenue. Start your research today to zero in on the right bank and scheme for your needs! If you are looking for a fixed deposit account that offers higher interest rate, check out the options provided by IndusInd Bank. The flexible tenure and multiple fixed deposit schemes are some of the few advantages of opening a fixed deposit with IndusInd Bank.
Disclaimer: No Asian Age journalist was involved in creating this content. The group also takes no responsibility for this content.
