Ask any financial expert about their recommendation when it comes to a particular mode of investment, and there’s a high probability that the words ‘Fixed Deposit’ will probably be the first thing that comes out of their mouth. And why wouldn’t this be the case? After all, the concept of fixed deposits has pretty much cemented itself as one of the most viable modes of investment one can go for. While there are several other forms of investment – such as mutual funds, recurring deposits, and stocks, to name a few – the benefits attached to the concept of a fixed deposit make it stand in the most definitive manner possible.

At this point, you might understandably be somewhat curious as to why so many people prefer this mode of investment. Well, going for a fixed deposit will ultimately help you enjoy the following benefits.

High return on investment

One of the major reasons why people tend to go for any form of investment is to accumulate as much wealth as possible. In this regard, fixed deposits are quite reliable since the rate of interest they provide is higher than a savings account. This is further enhanced if you choose a longer tenure since the rate of savings is generally higher in this instance.

To put this statement into context, let us state that Bajaj Finance provides a lucrative interest on your fixed deposit of around 8.75%. This amount can go up to 9.10% if you happen to be a senior citizen, which further goes to show just how lucrative a fixed deposit scheme can be if you play your cards right.

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Minimum deposit amount

The idea of having to invest a bulk amount while investing in a fixed deposit scheme might seem quite intimidating at first glance, and understandably so. After all, the idea of saving up lakhs of rupees just for investment purposes might seem like a rather unnecessary course of action to take. However, most fixed deposit interest schemes don’t require such a massive investment.

Bajaj Finance is a great example of a fixed deposit with low barriers to entry – with a minimum investment amount of just Rs. 25000, you can invest any time you want without having to think twice about any financial entry barrier.

Assured returns

Unlike most other forms of investment such as mutual funds and stocks, any fluctuations in the market don’t play a role in the interest payments of a fixed deposit. After all, one of the major selling points of these form of investments is the concept of no risk – the interest rate (and, consequently, the returns) are always fixed and unwavering.

Flexible tenure

A significant benefit of going for fixed deposits is the fact that you can freely choose your overall investment. This allows you to map out your finances and have the fixed deposit cash out at a time when you might require a sizeable amount of funding.

For example, Bajaj Finance lets you choose a loan tenure of anywhere from 12 to 60 months, providing you with substantial financial flexibility to suit your needs. On top of this, this institution also offers a Fixed Deposit with a special tenure of 15 months that provides an ROI that is 0.25% more than that of a 12-month FD.

Inculcating a habit of saving

Maintaining a certain level of savings has become the need of the hour for pretty much anyone who wishes to secure their financial stability in the long run. This is easier said than done since most people tend to be somewhat callous when it comes to their money, which can put them in a tight spot if they face an emergency and need to make a substantial payment. However, by responsibly investing in a fixed deposit, you can encourage a habit to save and judiciously carry out some long-term financial planning.

Fixed deposits have become the go-to financial instrument for pretty much anyone who wishes to attain substantial returns on their investment. A relatively high return on investment, flexible tenures, assured returns, little to no barrier to entry, and the encouragement of savings are just some of the many benefits that people attach to the concept of fixed deposits.

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2 Comments

  1. vincentd says:

    I am an NRI and I have certain amount in HWAI which will mature in the middle of this year.
    Please advise best way invest with a good return. Also let e know whether this matured amount will attract any tax now or further.
    Thanks
    Vincent

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