How We Can Utilize Our Investment With FD

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If you have still not started thinking about saving your money, then this is the time that you should. Saving money is the essential part of every person’s life whether he/she salaried employee or self-employed professional because you never know when you are in dire need of money, it can even arise due to an emergency. One of the rules to follow to save the money is to stick to a budget, and when you have a surplus budget, then you should invest them instead of keeping them idle in the bank account. There are various savings schemes or call them investment schemes introduced by financial institutions and NBCFs. The savings schemes are mutual funds, stock market, fixed deposits and many more. One of the safest options out of these is fixed deposits.  

What is a fixed deposit?

Fixed deposit is a great way to invest your money and see it grow. Fixed deposits enable an individual to deposit a lump sum amount with a bank or financial institutions, and he/she can select the tenure for which they want to invest the money. In return, individuals earn an interest rate once a pre-decided time is complete. Investors get guaranteed returns on their deposit; they can choose to get their interest periodically or at maturity. Generally, it is not allowed to withdraw the FD before completion of the tenure, but some lenders may allow by charging a penalty for the same.   

Here is a low down why you should utilize investment with FD

Fixed deposits are safe.

Fixed deposits are considered to be the safest investment option. They are safe due to their low-risk nature. While you invest in fixed deposits, you set aside a corpus amount which ensures that the capital is secure. Get assured amount on maturity; it is advised to start with the different investment options rather than investing the same amount as capital.  

Invest with AAA security banks

Fixed deposits are low-risk products with that they also assure more safety if the fixed deposit is made with FAAA security banks. CRISIL provide rating to the financial institutions and NBCFS, and the FAAA (F Triple-A) is the highest rating provided. FAAA rating reflects that the payment of interest and principal is reliable. 

Safety of the funds 

Best Interest rate

The central aspect of investing in fixed deposits is to get good returns. Recently, the fixed deposit interest rate has been rising due to growth in the market. You can make more in recovery during this time. For example:- Bajaj Finserv has got an FAAA rating from CRISIL and offers an interest rate of 7.35%. This kind of offer is excellent as you will not have to think about the returns as it has FAAA rating. 

Power of compounding 

People who do not need regular interest payment can opt for cumulative fixed deposit schemes ( also known as compounding fixed deposit schemes). In this type of fixed deposit scheme, an individual get the interest once the FD tenure gets over. With compounding a small amount can multiply over the years. There are banks which also offer a fixed time for as long as ten years so that compounding will be very beneficial in such a case.   

Avail the loan facility

A fixed deposit considered as a dependable instrument which helps in case of emergency. Taking a loan against FD is very easy and hassle-free, you can easily avail up to 75%- 95% of the FD amount available. For example:- with HDFC Bank, you can take a Loan Against Deposit after three months from the date of deposit and up to 75% of the deposit amount, subject to the other terms and conditions. Interest on such loans will be 2% above the deposit rate.

Bottom line: The fixed deposit is the best option if you are looking for security, best returns and want money to grow. It refers to not only for investors who have a low-risk appetite but also for the ones who are a high-risk investor. If you are looking to invest in your money, then this can be a saving scheme you can trust.

What is a fixed deposit?

Fixed deposit is a great way to invest your money and see it grow. Fixed deposits enable an individual to deposit a lump sum amount with a bank or financial institutions, and he/she can select the tenure for which they want to invest the money. In return, individuals earn an interest rate once a pre-decided time is complete. Investors get guaranteed returns on their deposit; they can choose to get their interest periodically or at maturity. Generally, it is not allowed to withdraw the FD before completion of the tenure, but some lenders may allow by charging a penalty for the same.   

Here is a low down why you should utilize investment with FD

Fixed deposits are safe.

Fixed deposits are considered to be the safest investment option. They are safe due to their low-risk nature. While you invest in fixed deposits, you set aside a corpus amount which ensures that the capital is secure. Get assured amount on maturity; it is advised to start with the different investment options rather than investing the same amount as capital.  

Invest with AAA security banks

Fixed deposits are low-risk products with that they also assure more safety if the fixed deposit is made with FAAA security banks. CRISIL provide rating to the financial institutions and NBCFS, and the FAAA (F Triple-A) is the highest rating provided. FAAA rating reflects that the payment of interest and principal is reliable. 

Safety of the funds 

Best Interest rate

The central aspect of investing in fixed deposits is to get good returns. Recently, the fixed deposit interest rate has been rising due to growth in the market. You can make more in recovery during this time. For example:- Bajaj Finserv has got an FAAA rating from CRISIL and offers an interest rate of 7.35%. This kind of offer is excellent as you will not have to think about the returns as it has FAAA rating. 

Power of compounding 

People who do not need regular interest payment can opt for cumulative fixed deposit schemes ( also known as compounding fixed deposit schemes). In this type of fixed deposit scheme, an individual get the interest once the FD tenure gets over. With compounding a small amount can multiply over the years. There are banks which also offer a fixed time for as long as ten years so that compounding will be very beneficial in such a case.   

Avail the loan facility

A fixed deposit considered as a dependable instrument which helps in case of emergency. Taking a loan against FD is very easy and hassle-free, you can easily avail up to 75%- 95% of the FD amount available. For example:- with HDFC Bank, you can take a Loan Against Deposit after three months from the date of deposit and up to 75% of the deposit amount, subject to the other terms and conditions. Interest on such loans will be 2% above the deposit rate.

Bottom line: The fixed deposit is the best option if you are looking for security, best returns and want money to grow. It refers to not only for investors who have a low-risk appetite but also for the ones who are a high-risk investor. If you are looking to invest in your money, then this can be a saving scheme you can trust.

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