A good financial portfolio is one that perfectly balances out riskier investments with risk-free, moderate-yield options. Diversification can help you here, and it is well worth it to include the trusted fixed deposit into your strategy.
An FD hedges against volatility, affording you the benefit of secured returns at maturity. It also provides a safe growing space for your funds in both the short and long term. While some issuers have already started increasing their offered FD interest rate keeping up with economic growth in 2021-22, these are expected to grow even further in the coming months.
If you are looking to diversify your portfolio and leverage the security offered by FDs, read on to understand the five benefits other than FD interest rates that make a fixed deposit a good investment option.
Fixed deposits are immune to market downturns
Fixed income instruments like fixed deposits conveniently sidestep fluctuations in the market and offer assured yield during the specified tenor. It is the reason why fixed deposits are a widely trusted investment instrument. The security, stability, and simplicity of investing in fixed deposits make them popular investment tools. Using the FD calculator, you can forecast your returns accurately, which is impossible when in the case of market-linked instruments like equity or mutual funds.
Fixed deposits are a viable investment option for all types of investors
Whether you are in the prime of your career, a professional who has just started investing, or a senior citizen, you can never go wrong with a fixed deposit investment. It is one of the safest investment options to earn more than savings accounts. What’s more, if you are a senior citizen, you can avail an extra 0.25% p.a interest rate up to 7.05% p.a. on your FD and watch your hard-earned savings grow reliably. Today, you can start your FD investment online and from the comfort of home, making it more convenient.
Fixed deposits are liquid and can be prematurely withdrawn or used to get a loan
While FDs lock in your investment for your chosen tenor, you can liquidate your fixed deposit funds before maturity. It demands a penalty fee, but it makes funds readily accessible for an emergency. Some FD issuers like Bajaj Finance also offer loans against FDs that help you get money when you need it. It will enable your FD to earn interest while giving you the money you need at an affordable rate.
Fixed deposits are ideal for short-and-long-term goals
You can use your fixed deposit earnings to finance short- and long-term goals. The FD interest rate for the long term is usually better, so you can plan accordingly. You may use the interest payout for various reasons, be it to plan a holiday, save up for the down payment of a car or home, pay your child’s tuition, finance a medical procedure, and more. You can also ladder FDs by investing in multiple deposits that mature at different times to meet a range of objectives.
Fixed deposits allow you to get steady interest payouts
You can get interest earnings from your FD every month, quarter, six months or annually. You can also receive the cumulative sum on the maturity of the fixed deposit, depending on your preference. While the latter gives you the highest FD rates and returns, you can benefit from periodic payouts to meet recurring expenses. It helps you set up a stream of income that you can enjoy throughout your investing period. Use an FD calculator to plan all this.
Consider the Bajaj Finance Fixed Deposit for maximum gains and a hassle-free investment process. It offers an interest rate of up to 7.05% p.a. on an FD booked for 36 months or more with returns at maturity. It also provides you to start your investment journey with a minimum amount of Rs. 25,000. Further, it gives you the option to choose SDPs, a unique Systematic Deposit Plan, using which you can book a new FD of just Rs. 5,000 or more every month. It allows you to invest regularly rather than waiting to save up a lump sum. Moreover, with the highest credit ratings from CRISIL and ICRA, you can be assured that your investment corpus is safe. So, invest online now and ensure your future financial security.