Fixed deposits have a long history of being one of the safest
investment options available to Indian investors. They are considered to
be a necessary part of any prudent investor’s financial portfolio. In
the case of fixed deposit investments, it is important to note that you
do not have to spend money to make money. In fact, with proper planning
and the right financing corporation, you can go on saving money by
reinvesting the money you saved in the first place. All it takes is a
smart investment plan which offers a high interest rate, flexible tenors
and easy functionality.
The advantages of fixed deposits begin with instantaneous online
application approval and carry on all the way to the end with highest
rates of return on the longest tenors. There are companies where
customer satisfaction is accorded with the highest priority through
hundreds of fixed deposit-dedicated branches across the country,
completely online management of your account, and an accurate calculator
that determines exactly how much you earn after your fixed deposit
matures.
Financial Safety at Its Best
Most investors know the regular
benefits of FD like
higher rates of return and better liquidity options, but here’s a list
of what makes a fixed deposit one of your safest preferences:
Guaranteed Return on Investment
Fixed deposits come with a fool-proof offer of receiving your funds
back, with interest. No matter what the market condition is, you can
always trust fixed deposits to come through for you.
Fixed Rate of Interest
From the moment you apply for fixed deposits until the maturity of
your tenor, the interest rate on fixed deposits is never subject to any
change. Even if the rates for other investments experience a downfall,
your rate of return will not be affected at all.
Flexible Tenor
If you’re planning on saving money, it’s important to know what the
future holds. That is the only way most investments pay out profitable
returns. With fixed deposits, however, you do not have to worry even if
your future in uncertain because they offer a highly flexible tenor
period—from 12 months to 60 months.
Tax Savings
Under section 80C of the Income Tax Act formulated in 1961, fixed
deposits up to 1 lakh are eligible for tax deductions if the maturity
period is 5 years, but the interest earned is taxable.
Safety Net
If, due to unforeseen circumstances, you require a loan from any
financial corporation, fixed deposits provide an easy option by letting
you take a loan on FD. This means that the company will give you up to
70% to 90% credit as a loan on your own fixed deposit.
Cumulative or Non-cumulative Fixed Deposits
In the interest of financial safety and to keep a constant tab on
your funds, some companies offer the option to choose between cumulative
and non-cumulative fixed deposits. Although the rates of interest are
slightly lower on non-cumulative fixed deposit, you can check through
online fixed deposit calculator
how rate of interest vary in cumulative and non cumulative fixed
deposit. You have the advantage of obtaining a steady flow of cash
throughout the tenor period.
Get Started On A Better CIBIL Score
Not only can you keep earning money on your fixed deposits even if
you take out a loan on them, you can also improve your CIBIL score using
the same loan since financing corporations need to have your credit
information recorded with CIBIL to provide loans at a low cost.
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