Fixed deposits, often termed as FDs, are a traditional investment instrument offered by banks and non-banking financial companies (NBFCs). A fixed deposit is a savings account with a predetermined fixed interest rate for a specific tenure. Unlike regular savings accounts, FDs offer higher interest rates which makes them an attractive option for those seeking secure and steady returns.
Despite the emergence of various investment avenues such as Mutual Funds, Bonds, Stocks, fixed deposits continue to be a preferred choice for a significant portion of the investor population.
You might be thinking what are the factors that make fixed deposits this attractive, so, their low-risk profile, guaranteed returns, and easy accessibility make them an ideal investment option for risk-averse individuals, senior citizens, and those aiming to build a corpus for short-term financial goals.
Sometimes question arises:
Also Read: Fixed Deposits 101: How to Choose the Best FD for Optimal Returns and Safety.
How to Invest in Fixed Deposits (FDs):
Investing in a fixed deposit is a straightforward process that includes very little documentation and time. You just need a bank account and a good financial institution.
Here’s a step-by-step guide to help you navigate the investment:
Choose a financial institution: Select a bank or NBFC with a strong reputation and competitive interest rates or you can also continue with the bank in which you have your bank account. Always consider factors such as the institution’s financial stability and customer service.
Decide on the deposit amount: First, determine the amount you wish to invest. Your goal should meet the minimum amount requirements of your bank as most financial institutions have a minimum deposit requirement. You must also ensure that the amount you are willing to invest will be available to you every time during installments.
Select the tenure: This is the most important part because the tenure of investment will determine your rate of interest and returns on your investment. Choose the investment period that aligns with your financial goals. FDs typically offer tenures ranging from a few days to several years.
Opt for interest payout frequency: Decide how you want to receive your interest. You can choose from monthly, quarterly, half-yearly, or annual payouts, or opt to receive the entire interest amount at maturity.
Complete the necessary formalities: Fill out the required application form, providing personal and financial details. Submit the necessary documents, such as proof of identity and address. All the documents should be original and verified by the GOI.
Make the deposit: Transfer the funds to the designated fixed deposit account. You can usually do this through online banking, mobile banking, or by visiting the bank branch.
Conclusion:
So, as of now, you have a roadmap to take a step toward opening a fixed deposit account. Then what are you waiting for, With utmost security and stability you can have the best returns and for all this Divadhvik is here for you. With proper consultation and research, we have to list of best fixed deposits.
Also, our professionals and experts are well-trained to provide you a proper guidance, from opening a fixed deposit to filing the last installment, we will be with you.
Let’s make a move towards financial independence- Divadhvik.
