Fixed deposits are one of the most popular type of investment options in India. Also known as term deposits, it is a sum of money deposited with a financial institution for a given period of time. This amount bears a set rate of interest. Fixed deposits make it extremely convenient to park your savings and earn assured returns. If you are planning to start investing through fixed deposits, then there is no better time than now!

Benefits of fixed deposits

• Fixed deposits are a risk-free investment option. This makes it a very viable option for when you wish for assured returns. There is a guarantee that is attached with fixed deposits.
• They come with a relatively higher rate of interest as compared with other kinds of risk-free investments.
• There is a degree of flexibility with the tenure of fixed deposits. Fixed deposits let you choose from a term that you are must comfortable with.
• The investment is liquid and you can avail of the principal amount at any given time. However, this will lead to a loss in the interest rate or a levy of a penalty.
• Once you have made an investment in fixed deposits, you do not have to be hassled by the need to keep a tab on the same. It is never affected by the market uncertainties.
• A loan maybe availed against a fixed deposit whenever required.

Getting the best returns with fixed deposits

Invest early on – Financial experts’ advice that is best to start investing in fixed deposits at an early stage in the investment journey. This is would mean as soon as you start working or have stable income to begin saving. It gives you enough time to create a safe corpus for future financial goals. Ensure that you check the credit ratings of an agency before making fixed deposits.

Do not break a fixed deposit – Breaking your fixed deposit will disrupt you financial plan. You will lose the promised interest if you do so before the tenure ends. It is wiser to take a loan against your fixed deposit in the case of a financial emergency.

While fixed deposit investments may seem straightforward and convenient, you must put in some time and effort when choosing one. Plan well to ensure that your money grows with time.