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A Smart Way To Save: Invest In Fixed Deposits

Fixed Deposit accounts are widely popular among the Indian audience. You reap several benefits on its maturity. Learn about these here.

Since November 2016, after demonetisation took India by storm, you can see people visiting banks frequently. Apart from drawing money from ATM, they are keen on opening a fix deposit account.

Thanks to technology, you do not have to wait in long queues to submit any form. NBFC banks like Bajaj Finserv have an option of an online application form. You only need to enter your personal details, attach scanned documents and get instant approval from the bank.

Why Choose Fixed Deposit?

Fix deposits are chosen for one primary reason- better yields when compared to savings account. Further, they can be easily opened by you through the bank website. This eliminates endless visits to your bank or other paperwork.

Fixed Deposits offers richer investment over a period of time. Once the Fixed Deposit maturity period ends, you can either choose to withdraw money or auto-renew your account.

Brownie Points For FDs

Opening a Fixed Deposit has been considered safer than investing in stock markets and shares. All you have to do is just deposit the amount in your bank, and over a period of time you receive a good amount of money. There are several benefits of Fixed Deposits, and the following are worth noting.

Practise Makes… Profits

You learn how to save money, and once you practise this habit, you will notice the difference it makes. In an FD account, your money is put away for a period of time and you cannot withdraw them prior Fixed Deposit maturity period ends.

Better Rate of Interest

When you invest in a Fixed Deposit account, you receive a profitable amount when compared to your savings account.

A Friend in Need

An FD account acts as a cushion or backup when you require your money. In case of an emergency or future requirements, an FD always promises you of returns.

'Bank’ble Interest

You can choose a convenient time period depending on your financial status. Interest is payable upon maturity and you can withdraw it for personal use or choose auto-renew option.

Renewal And Withdrawal of Fixed Deposits

When your FD reaches maturity, there are two options you can choose to do. One, auto-renew your account for few years. Most of the banks have an auto-renew option, and they will automatically renew your deposit. This is a good idea if you have plenty of funds, and there is no immediate requirement to spend them.

Another Option- Withdraw The Money

Banks have auto-termination which transfers the amount to your savings account. This might result in lower interest charges on your FD owing to the volatile nature of the market.

Make an informed decision, and if you have terminated your FD interest rate let it stay in your savings account and accumulate interest.

Final Word

The decision of renewal and withdrawal of Fixed Deposits is solely left to you. Study the present market and assess your future needs. Renewal is a good choice if you do not intend to keep a tab on your investment for long periods of time.

Do note that a bullish market can result in lower interest charges, and should set the auto-renew swinging for your Fixed Deposits.

This is a YourStory community post, written by one of our readers.The images and content in this post belong to their respective owners. If you feel that any content posted here is a violation of your copyright, please write to us at mystory@yourstory.com and we will take it down. There has been no commercial exchange by YourStory for the publication of this article.
Nitin Arora is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has worked extensively in the finance sector and has been dealing with the entire range of loans. He has written numerous pieces on home loans, business loans, doctor loans, EMI loans etc. and how they affect the customer in the present market scenario. He has been dealing with a host of reputed clients associated with the financial industry.

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