In today’s world, we all look for investment options that give us quick and easy returns. Young investors generally prefer to invest in mutual funds, equity funds or real estate as they advertise higher returns. However, these returns are also accompanied by higher risks.

If you are looking for a well-rounded investment plan, we suggest opting for fixed investments or term deposits. They are one of the safest options and will also give you easy returns.

What are Fixed Deposits?
A Fixed Deposit is one of the most popular financial instruments. Fixed Deposit rates are generally higher as compared to savings account.

Why should you select this investment option?

Safety
FDs are the safest investment options as they are regulated by the Reserve Bank of India (RBI)
Even in the event of default by the bank, the investor is entitled to get back a deposit of up to Rs. 1 lakh.

Guaranteed Returns
Investors can plan their finances in advance as they know the exact amount of returns they will get. Even if the interest rates are down, it does not affect your returns. In fact, on the maturity of your investment, the bank gives you a fixed amount along with interest, without considering prevailing market conditions.

Simple redemption
In case of unexpected requirement of money, you can redeem the amount by breaking your Fixed Deposit before maturity. However, in such a situation, you are obliged to pay a penalty which may be some points lower than the rate of interest.

Tax benefits
Investment in tax saving FDs helps the investor to get tax benefits under section 80 C of the Income Tax Act, 1961. Fixed Deposit interest facilitates saving of a major amount as taxes. If your interest amount is below Rs. 10,000, there won’t be any tax deductions at source.

How can you save more by investing in Term Deposits? 

Since FDs promise a fixed return, you can invest your money for a longer period without worrying about losing money. Investing for extended periods also ensure higher returns. In case if you require a loan, you can avail up to 90% of the FD amount as loan in the form of an overdraft.

Senior citizens generally get higher rate of interest.

You can get easy and higher returns if you re-invest the amount of interest earned.

It is a wise decision to make investments in a number of FDs if you have surplus funds. This will enable you to get a bulk amount on maturity.

Investments in public sector banks lead to higher returns along with higher safety and security.

An option of cumulative as well as non-cumulative interest ensures your cash to flow easily.

Investing in Fixed Deposits is a smart way to save your money as well as get simple and higher returns on investment. So instead of keeping your money idle in the bank, switch to investment in FDs for a secure future.

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