Savings are important but not useful enough unless those funds are invested. Investment help in building a corpus for contingencies and goal planning. In fact, with the best FD rates in India, they are the best fit for investors planning their retirement.
Because a salaried person has to manage investments and expenses within a stipulated income, he needs to consider amount, risk, and return while determining the best fd rates in India for himself.
What is a Fixed Deposit?
Fixed Deposits are long-term investment instruments that assist in setting aside some cash for rainy days. Many lean towards FD for wealth creation and saving taxes as they are one of the most customary and most secure means to invest. Apart from offering high-interest rates as compared to savings accounts, FDs are eligible for tax deduction under 80C too.
Later in the article, you can have a look at the best FD rates in India.
Why a salaried individual should invest in Fixed Deposit?
An FD not only provides a guaranteed return but also these returns are commonly well beyond the profits offered by a savings bank account. However, returns differ according to the tenure of investments.
Best FD Rates in India is accompanied by the advantage of having a flexible tenor. With FDs, you have the flexibility to fix your money over a stretch of time. Truly, FDs pop up with n-numbers of tenure duration ranging from 7 days to 10 years.
Investment in debt instruments become necessary in order to adjust the market risk. FDs are the best in dealing with the sort of risk when you are looking for long-term financial goals of your life.
Helps in liability crunch
In some cases, liabilities emerge because of uncertainty and you may have the desperation of having money by then. In those conditions, you can take a credit against your fixed deposit.
Rather than taking an unsecured loan at a high rate of interest, fixed deposit holders have the alternative to funding their crisis themselves…by taking an advance against their FD. A little rate (0.5% – 2%) of interest is charged over the applicable fixed deposit rate.
Partial Withdrawl is allowed
Partial withdrawal is permitted in case of FDs where the balance amount earns the original rate of interest.
Backed with Deposit Insurance of Rs. 5 lakh
Bank fixed deposits are backed with an insurance of Rs. 5 lakh. This guarantee is provided by Deposit Insurance and Credit Guarantee Corporation: DICGC, a wholly-owned subsidiary of the RBI, India.
All the banks provide their customers with tax-saving FD options which help in bringing down their taxable income. Investors can put in up to Rs. 1.5 lakh of the amount in a tax-saving fixed deposit which can be quoted in deductions u/s 80C of the Income Tax Act, 1961.
Best FD Rates in India
|Name||FD Interest rate for Regular Individuals||FD Interest rate for Senior Citizens|
|IDFC First Bank||7.50%||8.00%|
With CRISIL’s FAAA/Stable rating, ICRA’s MAAA (stable) rating, and as the only Indian NBFC with an international rating of ‘BBB’ by S&P Global, your investments in Bajaj Finance FDs are never at risk.
Apart from the highest FD interest rates in India, Bajaj Finance FDs offer you numerous benefits such as:
- The facility of loan against deposit
- Online application and maintenance of FD account
- Allows premature withdrawal, and
- Auto-renewal facility
You can start investing in Bajaj Finance Fixed Deposits with a minimum deposit amount of Rs. 25,000 and enjoy interest rates up to 7.85%.
Benefits of Online Fixed Deposit
It is anything but difficult to apply for an FD online and one can do this through net banking or an online application. Numerous banks and NBFCs provide the facility to open an FD online providing you with the best FD rates in India. Bajaj Finance Limited is one such financial institute. Following are the benefits of an online Fixed Deposit:
Comfort of Home
The first benefit of online fixed deposit is the comfort of home. Banks and NBFCs are now providing the facility of opening and maintaining a fixed deposit account online. Not only does it allow you to compare products and gain access to kinds of information but make the application and maintenance processes easier for the account holder.
FREE Fixed deposit interest calculator
Fixed deposit interest calculator is an online tool designed to help you determine your FD interest and maturity amount in only a couple of minutes. Besides, it also helps you calculate and compare your receivable interest amount conditioned to different combinations of deposit amount, tenure and interest payment frequency.
Easy payment methods
With the assistance of any digital payment options, be it credit card, Boi Internet Banking, ATM/Debit Card and net banking you can apply for online Fixed Deposits. You can likewise link your bank account where the returns are pulled out automatically and you are essentially told about the payment.
Loan facilities and insurance aids like personal accidental cover etc are some of the additional advantages provided by numerous banks when you apply for an FD online.
Hope this article helps you make a sound decision knowing ins and outs of investing in fixed deposit as a salaried person in India.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.