India has seen substantial progress in the last decade. From smartphones to easy accessibility of the internet, the evolvement of technology has changed the mindset of Indian people. Even though there is a difference of opinions related to investment, one financial instrument that is standing still for Indians is fixed deposits.
It is not only our parents who prefer fixed deposits over other investment options, but it is us as well who consider fixed deposits for investing. Have you ever thought that what exactly makes a fixed deposit so useful? Are they the best FD rates or something else? Let us see:
To get to know why people of almost all age groups prefer fixed deposits over other investment options it is necessary to understand the benefits a fixed deposit scheme offers.
If there is anything that we as Indians prefer over anything is security. Be it for our future or our finances. Fixed Deposits are one of the safest options in the investment market. So, even though you are one of those who like to take risks in his/her investments, keeping a fixed deposit as an option always helps.
There are other investment options like mutual funds or stocks that can offer, but these investment returns are dependent on the current market trends. On the other hand, a fixed deposit account is built in a way that keeps your invested amount safe all the time. It minimizes the investment risk and helps you to protect your finances from market fluctuations.
The biggest benefit of a fixed deposit account is that they provide flexibility in investment tenure. The tenure of a fixed deposit scheme ranges from seven days to 10 years. With such a vast range of investment tenure, a fixed deposit caters to the investment needs of everyone despite their age or financial status.
Once you pick a tenure of your fixed deposit scheme, it becomes really easy for you to understand what you require. You can as well plan for your future financial goals by selecting the tenure of your fixed deposit scheme so that it matures at the correct time.
When you save your money in a fixed deposit account, you practically get the guarantee that there will not be any risk to the returns of your investment because of any uncontrollable reason. Unlike various other forms of investment, you get specified returns for sure. In addition to this, due to the higher interest rates of a fixed deposit account than a savings bank account, you enjoy high investment returns from it. This makes it one of the perfect savings options for the Indian household.
With all the above-mentioned advantages, a fixed deposit account can be considered as one of the best financial options for people of almost all age groups. Moreover, the fixed deposits are even more beneficial when you are a senior citizen and are retired or soon going to be retired. The reason for the same is a higher rate of interest offered by fixed deposits to the senior citizens, which guarantees higher returns for most of your future requirements.
The biggest saying for all the generations is – you must have something saved for your rainy days. Financial emergencies can occur to anyone and in such a situation a fixed deposit account works as a reliable financial income source.
Moreover, if you do not want to break your FD, you will be presented with an option to avail loan against the principal amount of your fixed deposit. So, in all the ways, a fixed deposit account always assures you that you will not be unprepared for any financial emergency.
Unlike other savings and investment options, a fixed deposit is very easy to understand. All you need to do is to deposit a lump sum amount for a tenure of your choice and you will get a fixed rate of interest provided for that tenure. Upon maturity, you will get your principal amount plus the interest earned. If you want you can reinvest this money in a new fixed deposit scheme.
The aforementioned are some of the factors that being Indians we all consider and hence prefer FD as one of our safest investment tools. If you are also among those who want to invest in a fixed deposit scheme to get the best FD rates, you can compare various FD interest rates online and then can select the most suitable one.
Though most of the banks offer almost the same FD rates, Indian Bank FD rates are those that you can consider. However, it is up to you which bank you want to choose for your fixed deposit investment.