Fixed deposits are still the preferred form of investment for millions of Indians. However, since the introduction of newer investment options, the popularity of fixed deposits have been waning. FDs though, still remain one of the most secure investments in the market. Here is a look at some of the reasons why investing in fixed deposits can be a great way to earn profits.
1. No risks
Fixed deposits are among the few investment options where you are assured a return on the investment. There is no way that you would lose the invested money. FD account returns are generally greater than the interest offered by the savings account. However, to get the best returns, it is recommended that you do not withdraw from the fixed deposit account prior to maturity.
2. Flexibility
In case of FDs, you have greater flexibility as compared to other investments. This means that you are free to select the tenure of the fixed deposit as per your own wishes. Apart from this, a fixed deposit does not warrant a bank account in the same bank where you might be investing. This makes matters easier, as you do not have to maintain a separate bank account just for the investment.
3. Limited fluctuations in rates
Fixed deposit investment do not result in the highest amount of gains financially. However, it is perhaps the most stable form of investment. Mutual funds, gold investments and others offer greater returns but the rate fluctuates frequently. So, in the long run, FDs are your best choice.
4. Loans against investment
Emergencies may arise at anytime in life. However, you do not need to break the FDs for every financial need. In fact, you can easily take a loan against the fixed deposit amount. While there is no fixed percentage of loan that every bank grants against an FD, mostly, the loan amount ranges between 60-90% of the total fixed deposit amount.
5. Wide range of investment allowed
Fixed deposits allow you to invest as little or as much as you like. There is no such minimum or maximum limit for investment. This helps people of all ages and background to invest their money and earnings, regardless of their annual income.
So, if you do not have a fixed deposit account or you have not tried out this form of investment till date, you should try it out today. It is a surefire way of ensuring that you make sizable returns on your investment.
1. No risks
Fixed deposits are among the few investment options where you are assured a return on the investment. There is no way that you would lose the invested money. FD account returns are generally greater than the interest offered by the savings account. However, to get the best returns, it is recommended that you do not withdraw from the fixed deposit account prior to maturity.
2. Flexibility
In case of FDs, you have greater flexibility as compared to other investments. This means that you are free to select the tenure of the fixed deposit as per your own wishes. Apart from this, a fixed deposit does not warrant a bank account in the same bank where you might be investing. This makes matters easier, as you do not have to maintain a separate bank account just for the investment.
3. Limited fluctuations in rates
Fixed deposit investment do not result in the highest amount of gains financially. However, it is perhaps the most stable form of investment. Mutual funds, gold investments and others offer greater returns but the rate fluctuates frequently. So, in the long run, FDs are your best choice.
4. Loans against investment
Emergencies may arise at anytime in life. However, you do not need to break the FDs for every financial need. In fact, you can easily take a loan against the fixed deposit amount. While there is no fixed percentage of loan that every bank grants against an FD, mostly, the loan amount ranges between 60-90% of the total fixed deposit amount.
5. Wide range of investment allowed
Fixed deposits allow you to invest as little or as much as you like. There is no such minimum or maximum limit for investment. This helps people of all ages and background to invest their money and earnings, regardless of their annual income.
So, if you do not have a fixed deposit account or you have not tried out this form of investment till date, you should try it out today. It is a surefire way of ensuring that you make sizable returns on your investment.
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