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5 Best Reasons to Invest in a Fixed Deposit

One of the best investment options that provides assured returns along with safety of the invested funds from market downturns is a fixed deposit. They are offered by financial institutions like banks and Non-Banking Financial Companies (NBFCs) for a variety of tenure options that can be as short as 7 days and the long tenures can span as long as 10 years. In case of FDs, a lump sum investment is made for the tenure decided; this deposit then stays locked in with the bank/NBFC for the tenure and earns interest as per the pre-decided rate of interest that can range from 3% for some banks to more than 8% for some NBFCs.

Reasons to invest in Fixed Deposits | Bajaj Finance 

Given below are a few benefits of FDs which are also the reasons why you should invest in one (or more) at the earliest:

Significant Returns

As mentioned earlier, fixed deposits provide returns of the range of 8% per annum which is double of that of a savings account.

No Ups and Downs on Returns

One of the best features of FDs is that they are independent of market conditions.

Amount Invested is Secured

As there is no influence of the market, the sum invested in an FD (Fixed Deposit) is always secure and the returns are assured.

Inculcates a Habit of Saving

FDs are savings cum investment objects, which thereby help in inculcating the good financial habit of saving.

Loan Against FDs for Times of Need

Since keeping all funds locked up in an FD for years on end can leave the investor financially unprotected, quite a few banks/NBFCs provide loans against FDs.

Conclusion: This post explained the all major reasons why peoples invest in fixed deposit scheme. So if you are opting FD for investment then you have to know the pros and cons about the FD investment.

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