Fixed Deposits Explained: An Age-old Investment Option

Fixed Deposits have been a part of the investment universe for quite some time now. It’s an investment option that is safe, reliable and yet yields good returns. With interest rates that are higher than that of savings accounts, FDs provide a myriad of benefits such as flexible tenures, tax benefits, etc. Moreover, the application procedure is as swift as a breeze.

590

Key Takeaways

Fixed Deposits, also known as FDs, are a form of investment offered by financial institutions

Investing in an FD for a particular tenure at a pre-decided rate of interest could yield you returns in addition to your initial principal amount

Whether you want to save up for an emergency fund, short-term goals, or simply don’t want to take any risks, FDs have got you

Some of the highlights of an FD are its secure nature, flexible tenure, tax benefits, and so on.

Opening an FD is a simple process that can either be done online or by visiting a bank’s branch in person

FDs are a secure investment option for you to park your savings and grow them over time

What to Watch Next

New Episode

Do You Know About the Different Types of Mutual Funds

New Season

Mutual Funds 101

New Episode

Understanding Mutual Funds

New Episode

Two Wheeler Loan EMI Calculator Crunch the Numbers

New Episode

Key Regulatory Developments in India s Fintech Space

New Episode

How Can Estate Planning Help You

New Episode

Budgeting as a Parent

New Episode

First Time Homebuyer Discover the Secrets to Success

New Episode

Buying Your First Car What Should You Know

New Episode

Union Budget 2024 What Start ups and MSMEs Need to Know

New Episode

Account Aggregator How to Simplify Your Finances with it

New Episode

How Can Neobanks Transform Your Banking Experience

New Episode

Union Budget 2024 Employment Schemes and their Benefits

New Episode

Decoding the Impact of the Union Budget for You

New Episode

Summarising the Union Budget 2024 in 5 Minutes

All

The interest rates offered on FDs are higher than that of a savings account. Additionally, a savings account will not offer you tax benefits, but a tax-saving FD will.

The interest rates decided at the beginning of the tenure continue to remain the same throughout the term despite market fluctuations. This ensures that you continue to earn returns on your investment without any interventions.

With a cumulative FD your entire interest pay-out is given to you at maturity. Whereas, with a non-cumulative FD you could receive your pay-outs on a periodical basis.

You can choose the tenure of your FD as per your financial goals. If you’re going to need funds in the near future, then opting for a shorter tenure could be ideal. But if you have long-term goals then choosing a longer tenure may be beneficial for you.

Under Section 80C of the Income Tax Act, you can claim up to ₹1.5 Lakhs per year through a tax-saving FD.

Bajaj Finserv Direct Limited ("Bajaj Markets") offers to its customers, various financial products and services through its digital platform as a registered Corporate Agent with IRDAI, registered Investment Adviser with SEBI, registered Third-Party App Provider (UPI payments), and as DSA or Digital lending platform of its Partners. Further, Bajaj Markets also offers a marketplace e-commerce platform to facilitate transactions between customers and sellers on-boarded on the platform. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522 Corporate Agency (Composite) Registration no.CA0551 (valid till 10-Apr-2027) Investment Adviser, SEBI registration: INA000016083 (Validity - Aug 11, 2021 - Perpetual)

Fixed Deposits Explained: An Age-old Investment Option

Key Takeaways

What to Watch Next

Bites