If you choose to invest a part of your earnings regularly, it is the best way to build your capital and earnings in the long run. And the best way to start saving is by opening a Fixed Deposit as it can help multiply your investment over a span of time. Moreover, an FD can help you in several ways by meeting your financial goals and targets, and keeping your future secure.
Benefits of a Fixed Deposit
When it comes to Fixed Deposits, here are five substantial reasons why you should invest in an FD:
Fixed deposits are backed by the government and hence come with almost zero risks. Unlike other instruments that are unpredictable in nature and can be affected by the existing economic situation, FD’s work differently. The main differentiating factor between the two is that FD’s are secure and safe even if the market conditions are unstable. Thus, you can focus on building your financial and business goals as your savings are secure in an FD.
Another benefit of an FD is that it provides a guaranteed rate of return. While preparing an FD, you are already aware of the term and maturity amount at the end of the specified period. Your financial investment portfolio will benefit from the guaranteed principal amount and accrued interest, enabling you to plan for the long run.
Unlike other investment instruments, a Fixed Deposit can be withdrawn as and when required. You can undoubtedly withdraw funds even before maturity for which a penalty may be charged by the bank. Even then, you always have a fixed sum of money to rely on during a crisis situation or in times of difficulty
Fixed Deposits come with complete flexibility when it concerns the term of the investment. A customer can choose any time period that could range anything from a week to 10 years. Further, you have the flexibility to break it completely or partially, whenever required
5. Easy to Invest and payout
It is extremely simple to deposit in a Fixed Deposit without any hassles. All a customer would need to do is submit an application form with the payment amount. There is an option to open it online with just a click of a button via net banking or you can visit the nearest branch and submit the required documents. As a customer, you also have the option to invest in multiple FD’s by electing for a multi-deposit facility.
While there is a lot that has been said about this traditional investment tool, it stands as one of the smartest choices that need to be in your investment kitty. In addition to all this, there are several other benefits of investing in FD’s like the loan facilities that give you easier access to funds at the time of emergencies when you are looking for security and safe returns. Moreover, the immense benefits and comforts offered make it a universal choice of investment for every investor to build their capital.