Investment Tips: Why do people invest maximum money in FD, know 7 features before investing..

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Recently, DBS Bank and CRISIL conducted a study, that revealed that women's interest in buying gold is decreasing, while the trend of fixed deposits has increased among women. If seen, fixed deposit is not only a reliable investment option for women but it is still liked a lot by the elderly and youth, while there are options available in the market that give better returns. Financial experts also recommend that FD should be included in your portfolio. Let us tell you those 7 features of Fixed Deposit due to which it remains people's choice even today.


Bank FD is a safe investment
Be it women, elderly, or youth… everyone wants to protect their earnings with better returns. Returns on FD have improved significantly in recent times and it is also considered a safe investment. Actually, Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance up to Rs 5 lakh on bank FD. In such a situation, the amount up to Rs 5 lakh deposited in a bank FD is completely safe, that is, even if the bank sinks, your money will still be safe.

You can start even with Rs 1000
There is no condition regarding the amount of investment in FD. If the amount is not very big, then you can start with just Rs 1000. There is no maximum limit. In such a situation, this is a better way to save. Apart from this, you can get any amount of FD done. There is no such condition that if you have got one FD done then you cannot get another one.

Investment option for desired tenure
How long you have to invest your money depends on you. There are many options for this in FD. You can get FD for 7 days to 10 years. You can also get it renewed if needed. This facilitates the investor to achieve his short-term or long-term financial goals.

Loan facility
One specialty of FD is that you can take a loan against it. If you suddenly need money, you can take a loan against it without breaking the FD. Banks give 90 to 95 percent of the total FD amount as a loan. Generally, the interest on a loan against FD is one percent more than that on FD. If you are not able to repay the loan on time, then that loan is covered with the amount of your FD.

No effect of market fluctuations
Market fluctuations have no effect on FD. Whatever interest rate was applicable when you started your FD, you get the money on maturity accordingly. With this, the investor gets an idea in advance as to how much amount he will have on maturity.

Higher interest for senior citizens
Most of the banks give 50 basis points i.e. 0.50% more interest to senior citizens than the common people. Apart from this, some banks give additional interest of 0.25% to ‘Super Senior Citizens’ who are 80 years of age or above. In such a situation, this is a beneficial deal for senior citizens.


Tax benefits
If you make FD for 5 years or more, then you get a chance to claim tax exemption under 80C. If you make an FD for less than 5 years, you will have to pay tax. Apart from this, if the interest received from the bank exceeds Rs 40 thousand in any of the five years, you will still have to pay tax.

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