08 February 2024 | By INDIE
The choice of investments plays a pivotal role in securing your financial future. Depending on your goals and risk appetite, you can find a suitable option to invest in the market. For those who prefer risk-free investments, Fixed Deposits (FDs) emerge as stable and reliable instruments to invest in for the long term. Let us go through the workings of Fixed Deposits and explore the advantages of opening a Fixed Deposit account in this blog.
A Fixed Deposit is a conventional financial instrument where an individual invests a lump sum amount for a predetermined period at a fixed interest rate. The principal amount and the interest accrued over the investment period are credited to the account holder after the maturity date. Since the Fixed Deposit investment is independent of market fluctuations, it proves to be a predictable and secure avenue to park your idle funds and enjoy higher interest rates as compared to a basic savings account.
1. Safety and stability: An FD investment offers stability and safety with the interest rate fixed at the time of opening a fixed deposit account. Unlike market-linked investments which are prone to volatility, FDs ensure the preservation of capital. This makes them an ideal choice, especially for risk-averse investors who are retirees and senior citizens.
2. Predictable returns: The fixed interest rate offered by FD guarantees predictable returns. The assurance of set returns facilitates effective financial planning.
3. Flexible tenure options: You can choose the tenure of your FD, which can range from a few days to several years. This flexibility enables you to align your investments with specific financial goals, be it short-term or long-term.
4. Liquidity with premature withdrawal: While FDs are generally considered as long-term investments, they offer a safety net in the form of premature withdrawal options. Although this may incur a penalty, investing in a fixed deposit provides the liquidity required in times of unforeseen financial urgencies.
5. Tax efficiency: Tax-saving fixed deposits offer tax benefits under Section 80C of the Income Tax Act. With a tax-saving fixed deposit investment, up to ₹1.5 lakh per annum is eligible for a tax deduction, making it a tax-efficient investment avenue for those seeking to optimise their tax liabilities.
6. Simple application process: Opening a fixed deposit account is a hassle-free process, often requiring minimal documentation. This ease of initiation appeals to investors seeking a straightforward investment avenue without the complexities associated with other instruments. For instance, With the IndusInd Bank INDIE app, you can open a fixed deposit account within minutes with zero paperwork and start investing with amounts as low as ₹1,000.
IndusInd Bank’s INDIE platform stands out with its best FD plan that can be opened online instantly. Recognising the requirements of modern investors, a fixed deposit from the INDIE app is crafted to provide an optimal blend of security and growth with complete convenience.
1. Competitive interest rates: The INDIE app offers highly competitive fixed deposit interest rates of up to 7.75% p.a., ensuring that your money works diligently to yield substantial returns.
2. Diverse tenure options: The INDIE fixed deposit caters to the diverse needs of investors with a range of tenure options. Whether you are planning for a short-term goal or a more extended financial commitment, INDIE can provide the flexibility needed to align your investment strategy with your life goals.
3. Link your savings account: You can link your INDIE FD with your INDIE Savings Account and benefit from two additional features. First, you can enjoy the auto-sweep deposit facility where your savings account balance gets automatically converted into an FD when it crosses the predetermined threshold. This allows you to earn a higher interest rate on your funds. Second, if your savings account balance ever runs low, you can pay directly from your FD and cover your expenses.
The predictability, stability, and tax efficiency that a fixed deposit offers make it a superior choice over other investment avenues. When seeking financial security, a fixed deposit is considered to be one of the safest modes of investment. Opening a fixed deposit account becomes not just a choice but a wise and strategic decision, especially with innovative options like the IndusInd Bank INDIE fixed deposit leading the way. So why wait longer? Open an INDIE FD account now!
