Every individual must plan for their future and make the necessary arrangements to secure it. The benefits and importance of fixed deposits are innumerable. One should invest some amount of their corpus in FDs whenever possible. It is a wise financial move to open an FD with a long tenure when the financial institution announces its highest FD rates. By doing so, the investor can reap maximum benefits from the interest earned and compounding.
An FD is one of the most preferred saving alternatives chosen by Indian Citizens, usually accompanied by physical assets like gold or real estate for diversification. It is considered the most trusted and reliable source, especially in contingency times, and provides a wide range of financial help. To stabilize an individual's financial portfolio, one must invest in fixed deposits. They come in handy during an emergency as it is easy to liquidate with a minimal penalty. To accomplish higher return rates, one must invest in a minimum tenure of 120 days. Banks have a tenure period ranging from 1 year to 5years.
Secured mode of saving
Many people have faced financially testing periods during this pandemic and lockdown days. Those who had invested in fixed deposits could bank on this financial aid to tread through these difficult days. Fixed deposits have time again proved to be the most secure and safe option of investment. Apart from this, another significant benefit of opening an FD is its low-risk factor; there are minimal changes even with high fluctuations in market conditions.
Most banks deduct tax at the source when the income earned interest exceeds a certain amount. Individuals can claim the maximum deduction against the interest rate under the 80C section of the Income Tax Act if invested in a tax-saver fixed deposit account by investing up to Rs. 1.5 lakhs p.a.
Loan facility available
Investing in these safety schemes of fixed deposits makes individuals eligible for loans. When one has a higher amount of capital invested in FD's, the bank sees it as a safe commodity and, based on this, approves the loans. Taking loans against FD provides a hassle-free process without having to break the FD. It even offers flexible payment options.
Lower interest rates are available.
Investing in PNB housing finance fixed deposits opens many opportunities as, under this scheme, the PNB finance company offers lower interest rates. However, before opening FD's in any banks or financial institutions, it is advisable to determine the various interest rates as different banks have different rates based on their popularity and need for reserves.
Institutions like PNB Housing Finance have many branches across the country and provide their citizens with financial expertise with new and advanced schemes. Whether it is a new savings account or a Senior Citizen fixed deposit account, institutions like these make it economically and physically convenient to open new accounts.