<p style="text-align: justify;">A large percentage of the population holds Fixed Deposit accounts in various banks and NBFCs. Owing to their incredible benefits, they are a hot favourite among a diverse categories of investors looking for a combination of decent returns with low risk.</p>
<p style="text-align: justify;">Despite many other financial products entering the market, Fixed Deposits continue to attract investors. If you scan through an individual investor’s portfolio, you’re sure to find at least a couple of FD investments<b>. </b></p>
<p style="text-align: justify;">Opening a Fixed Deposit is pretty quick and easy. All that you have to do is a Fixed Deposit interest rates comparison. You can do this online and get an idea of the Fixed Deposit interest rates in India offered by different banks and NBFCs.</p>
<p style="text-align: justify;"><img class="aligncenter wp-image-1064 size-full" src="http://www.yangzhijishu.net/wp-content/uploads/2016/10/FD-.jpg" alt="Invest In A Fixed Deposit and Make The Most Of The Prevailing FD Interest Rates" width="550" height="500" /></p>
<p style="text-align: justify;">Highlighted below are the benefits of holding a Fixed Deposit account;</p>
<h3 style="text-align: justify;"><b>Safety</b></h3>
<p style="text-align: justify;">What is the point in choosing an investment option that erodes your capital? The primary feature that makes Fixed Deposits a top pick is the security that they provide. The principal amount remains intact, and Fixed Deposits held with banks are guaranteed by the Deposit Insurance and Credit Guarantee Corporation to the extent of Rs. 1 lakh.</p>
<h3 style="text-align: justify;"><b>Regular Income Flow</b></h3>
<p style="text-align: justify;">If the purpose of your investment is to earn a regular income flow that will take care of your expenses, Fixed Deposits are the ideal choice. You can choose to have the FD interest credited to your savings bank account at monthly or quarterly rests. Especially for senior citizens who plough in their retirement benefits, Fixed Deposits offer a steady income.</p>
<h3 style="text-align: justify;"><b>Interest</b></h3>
<p style="text-align: justify;">FD interest rates keep fluctuating. The Fixed Deposit interest rates differ among banks and also vary according to the tenure. Factors like interest cycle, state of economy, inflation, repo rate, bank’s borrowing costs have an impact on the interest rates. Generally, the rate of interest you earn on FD is definitely higher that what you earn on your savings bank account. To make the best use of your funds, transfer your savings account balance to your Fixed Deposit account to earn a higher return.</p>
<p style="text-align: justify;">In addition to offering special deposit schemes, banks also offer higher FD interest rates for senior citizens.</p>
<h3 style="text-align: justify;"><b>Tax Saving Instrument</b></h3>
<p style="text-align: justify;">While the FD interest income is chargeable to tax, you can utilise your investment in a tax saving Fixed Deposit to claim a deduction under section 80C of the Income Tax Act. The upper limit of investment is Rs. 1 lakh. You can enjoy the dual benefit of a guaranteed returns as well as tax saving.</p>
<h3 style="text-align: justify;"><b>Promotes Savings</b></h3>
<p style="text-align: justify;">By investing your surplus funds in a Fixed Deposit, you put your money to good use. Since Fixed Deposits carry a lock-in period and foreclosure entails penalty, you will think twice before making any withdrawal, thus helping you grow savings with ease.</p>
<h3 style="text-align: justify;"><b>Loan Against FD</b></h3>
<p style="text-align: justify;">In times of a cash crunch, an FD helps you tide over the crisis by allowing you to take a loan against the Fixed Deposit. You surrender the Fixed Deposit receipts to the bank and take a loan with your FD as collateral (the loan amount cannot exceed the FD value). This facility allows you to avoid a premature closure of the FD. You continue to earn interest on your FD.</p>
<h3 style="text-align: justify;"><b>Flexibility in Tenure</b></h3>
<p style="text-align: justify;">As a depositor, you have the freedom to decide the tenure of the Fixed Deposit. If there are reports that interest rates are due for a fall, you can lock-in a long term FD at the prevailing high interest rate. Fixed Deposits have a tenure ranging from 7 days to 10 years. You can ladder your investments by opening Fixed Deposits of varying tenures to ensure liquidity.</p>
<h3 style="text-align: justify;"><b>No Restrictions </b></h3>
<p style="text-align: justify;">There is absolutely no restriction on how many Fixed Deposits you wish to hold. Multiple Fixed Deposits can be held with banks and NBFCs and each FD investment can be utilised to meet your specific financial goals. Whether you want to fund your child’s higher education or meet marriage expenses or pay for a home loan, a Fixed Deposit proves to be an ideal financial aid.</p>
<p style="text-align: justify;">Offering a host of benefits, Fixed Deposits are indeed a sound investment option. Choosing the right tenure helps to earn high returns without compromising on safety.</p>

Invest In A Fixed Deposit and Make The Most Of The Prevailing FD Interest Rates
