Yes, you read that right—a fixed deposit account will actually make your money work for you, and that means you can earn interest on the money that is parked in the fixed deposit account. But there are many more advantages to an FD account as detailed below:

FD Account Benefits:

Rate of Interest:

While most saving account holders are used to 4% interest, some banks offer as much as 6% with the condition that account holder maintains a higher minimum balance at all times. However, the FD account benefits include a much higher rate of interest on your deposit compared to a saving account.

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No change in the interest rate:

In a fixed deposit, the interest rate as well as the deposit amount is fixed at the time of opening of the fixed deposit account. Any fluctuation in the rate of interest will not affect the fixed deposit, which has already been finalised at the time of opening the deposit.

Safety of your investment:

A fixed deposit account while offering a high return is also a safer investment option compared to the share market or the money market. Additionally, the FD also provides confirmed earning through interest.

Encourages saving:

A fixed deposit account makes it imperative for the account holder to set money aside for the agreed period of time, thereby encouraging the account holder to save money. With an FD you can start small and increase your investment portfolio as your income permits.

Clarity of return:

When you invest in a fixed deposit you are already made aware of the returns that are expected from the FD account. There are also FD calculators online, which will calculate the maturity value of your investment based on the information provided at the time of opening the FD account. So there is no confusion or disappointment.

Helps to set money aside:

A fixed deposit is a great way to keep profits from business or work aside for a rainy day for when you need the additional cash. In the meantime you can enjoy the benefits of a reasonable return on your investment.

Interest when you need it:

With a fixed deposit, you have the option of cashing in the interest as per your preference, ranging from monthly, quarterly, yearly or on maturity of the fixed deposit. This will help you to manage your cash flows better while ensuring your money is earning a return.

No limits:

There are no limits on the number of fixed deposit accounts an investor can open. So you can open one each for every one of your financial goals!

A fixed deposit provides flexibility and allows you the option of choosing an investment option from 7 days to 10 years.

Allows withdrawal:

The money deposited in a fixed deposit account can be quickly withdrawn when the need arises. In case of a medical emergency, a marriage or a business loss your money is available to you at short notice.

Loan against FD:

When you are in need of additional funds for a short time, you can also borrow money against the existing fixed deposits held by you. This way you will also not face any loss in interest from the fixed deposit.

 Higher interest for senior citizens:

Retired? Senior citizens are offered a higher rate of interest on their deposit, which will help their live savings to provide a higher return.

For the best deals on Fixed Deposits consider Bajaj Finance Limited. They have a simple online application process, require limited documents and provide good interest rates. And with over 200 offices across India, they are easy to reach in any city.

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