Top 5 reasons to invest in a Fixed Deposit

Top 5 reasons to invest in a Fixed Deposit

31 January 2024 | By INDIE

A fixed deposit is a fixed-income instrument that remains unaffected by market movements. The interest rate of a fixed deposit remains the same throughout the entire investment tenure. This makes a fixed deposit an ideal investment tool for achieving financial goals especially if they have a short-term horizon. Fixed deposits might not be able to match the lucrative returns offered by other high-interest investments but offer more security. Is an FD a good investment choice? Let’s take a look at the 5 benefits of fixed deposit investments to help get an answer to this question.

You can enjoy guaranteed returns

Investment instruments such as stocks and mutual funds are volatile to market changes. If you are looking for an investment avenue that can generate higher returns than that of a bank account but is not prone to market risks, a fixed deposit investment can be ideal. Unlike market-linked investment instruments that offer potential returns that depend on the market, fixed deposits offer interest rates that remain the same throughout the tenure of your investment. The returns that you receive once the fixed deposit matures are guaranteed, thus making it easier to plan out your finances accurately.

You have the flexibility to withdraw funds anytime

If you are worried about investing in fixed deposits and not having funds at hand in times when you are facing an emergency, note that you can always get instant access to the funds in the fixed deposit at any given time. While this is not advisable, you can break your FD at any time you need to access the required funds. While you have the flexibility to withdraw funds from your FD investment, it is ideal to have multiple FDs to not jeopardise your entire investment plan. You can break one or two FDs if needed and ensure that your remaining FDs are safeguarded. This is one of the key advantages of a fixed deposit account.

You have the option of applying for a loan against your FD

You might not prefer breaking your FD and losing out on high-interest investments, and you do not have to! There are other solutions that you can exercise to take care of the expenses at hand, such as applying for a loan against FD. If you have a fixed deposit, you always have the option of applying for a loan against FD and availing instant funds. This way, you get the required financial help without hampering the progress of your FD investments. Some banks let you borrow up to 90% of your fixed deposit amount!

You can open an FD instantly without any hassles

With banks embracing the digital advancements of today’s world, you can open a fixed deposit in the blink of an eye! If you choose to open an FD with IndusInd Bank’s INDIE, you can book your FD online is just 3 simple steps, with only your PAN and Aadhaar details. You can complete your KYC formalities with Indie’s video KYC facility and book your FD of any suitable amount.

Fixed deposits offer flexible tenures and payouts

When it comes to investing in an FD, you have a lot of flexibility in choosing the tenure. FD tenures generally range from a period of 7 days up to 10 years. Furthermore, some banks even let you choose the interest payout of your FD (monthly, quarterly, yearly, or at maturity).


So, is a fixed deposit a good investment avenue? With a bank that offers you good terms, it is! Apply for your Indie FD account and enjoy a high-interest rate, flexible tenures, and hassle-free instant online booking!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.