Why Having a Fixed Deposit Matters?

A Fixed Deposit is a financial product offered by both banking and non-banking institutions for all the citizens of the country. It is a steady financial instrument that provides a fixed rate of interest till the maturity of the principle amount put in. Compared to other regular savings accounts and recurring deposit accounts a Fixed Deposit offers a much higher rate of interest, which makes it a lucrative option for people with financial responsibilities. The assured nature of returns makes it a stress free money saving option for most people.

What Should I Know Before Opening a Fixed Deposit Account?

Once you have planned your finances and have decided to put a chunk of your money away, it is important to understand the different minimum and maximum deposits offered by various banks. The tenures for Fixed Deposits are also different for different financial institutions. You must be wise in choosing your tenure as premature closure can sometimes attract a penalty that may interfere with your total interest earned.

It is also very important to choose your nominee carefully for such an account. Putting your hard earned money away for a retirement plan is a wise financial decision, however, in the event of the death of the depositor, it is important that your money goes to kin or next of kin.

Many banks also offer lucrative offers for senior citizens. If you are looking for Fixed Deposit options for yourself or your parents, it is important you read both the content and the fine print.

Benefits of Opening a Fixed Deposit

Opening a fixed deposit account also offers you a number of benefits. Some of them are mentioned below:

Higher Interest Rate

A Fixed Deposit account is the perfect retirement plan as it guarantees your returns as compared to other volatile forms of investment. Whether the stock market is at a low or high, your Fixed Deposit account remains unaffected and continues to generate revenue for you over the years. For instance, with IndusInd Bank for any domestic deposit of Rs. 10,000 or above for a period of 5 years, you get an interest rate of 6.5%. You can also choose to make an FD deposit for a period as short as 7-14 days, where banks like IndusInd offer a 3 % interest rate.

Easy to Liquidate

 A Fixed Deposit can be easily liquidated in the event of a financial emergency, if you have an online account, it is even easier and can be done in a span of minutes. Although you may need to pay a minimal penalty, you can rest assured in the knowledge that you are always financially sound. This type of account is the perfect way to save your money as it multiplies much quicker than most other traditional methods of savings.

How Can I Open a Fixed Deposit Account?

In today’s day and age of technology, you can literally do anything with the simple click of a mouse. Needless to say that opening a Fixed Deposit account with a bank has also been simplified and can be easily done online. No matter where you are you can easily open your account online by logging on to the bank’s website and filling in all the necessary details. IndusInd Bank, for instance, goes the extra mile by allowing you the ease of pulling funds from other bank accounts. Open your Fixed Deposit account today and reap the benefits in the years that follow.