Monday 22 April 2024

5 important reasons why fixed deposits are great for women

Whether you want to put monetary gifts to good use, or want to secure your financial life today and tomorrow, consider investing the money so as to meet your financial goals. If you wish to diversify your investment portfolio to earn optimal returns on minimum risk, a fixed deposit will go a long way. This is because FD interest rates are higher as compared to other risk-free investment options.

Fixed deposits are one of the oldest, yet the most popular investment options in India, thanks to the assured returns, safety and flexible interest payout options that they offer. Read on to know why a fixed deposit is a great investment option for you.

1.You don’t need to monitor the performance of the fixed deposit

Unlike stocks and mutual funds, fixed deposits are not linked to market fluctuations. Hence, you don’t need to monitor the performance of your fixed deposit. This is also because your deposit amount is locked in for a tenor of your choice and so is the interest rate. So, by investing in FDs, you save yourself the task of monitoring and reallocating your funds from low-performing options to better-performing ones owing to market alterations.

2.You earn guaranteed returns so you can plan your finances well in advance

The interest rate on FDs remains unaltered throughout its tenor. Hence, your returns are guaranteed. Before you invest in an FD, be sure to use the FD calculator using which you calculate the maturity amount of your FDs basis the FD interest rates. To plan your finances better, use the calculator to ladder your fixed deposits so as to enjoy liquidity from time to time when financial goals have to be met.

3.You can start a fixed deposit very easily by just filling out a simple form

Another reason to invest in an FD is because opening it is not a task at all. You can start an FD by just filling out a simple application form online or offline when you visit a branch. Also, it is easy to start a fixed deposit if you have an existing business relationship with an issuer. Almost every bank, post office and NBFC offer fixed deposits(FD) for Women. So, you can check with your current financial institution and start an FD without any delay.

4.You can gauge the safety and trust factor of a fixed deposit and its issuer

CRISIL, a credit rating company, rates company FDs based on the company’s trends, past performance, liquidity and other factors. So, if a bank or company FD interests you, check out the CRISIL ratings before you go ahead and invest in one. Consider investing in safe options like Bajaj Finance Fixed Deposits that are rated FAAA, which offers the highest security. This means that your investment stays safe and that you will receive your maturity amount on time, irrespective of market conditions.

5.You can choose a suitable interest payout option as per your needs

Fixed deposits give you the flexibility to choose a suitable interest payout option basis your needs. When you invest in a non-cumulative fixed deposit offered by Bajaj Finance, you get to choose from monthly, quarterly, half-yearly and annual interest payout options. If you need money regularly, say to pay EMIs, you can choose to invest in a non-cumulative FD. On the other hand, if you want to receive a lump sum at a future date so as to meet needs like making a down payment, buying a car or paying for your child’s education, you can invest in a cumulative FD.

Now that you know why fixed deposits are a great investment option, put off any delays and invest in FDs offered by a reputable issuer like Bajaj Finance. Remember, you do not gain much as interest earnings by simply parking aside funds in a savings bank account. But, when you invest in a Bajaj Finance Fixed Deposit, you earn a significant interest, thanks to the FD interest rates of up to 8.75% that the issuer promises on a cumulative FD with a tenor of at least 36 months. Better yet, if you are a senior citizen, you can earn an interest of up to 9.1% on the same investment. In addition to this, you can also gain from higher interest earnings by virtue of FD renewals.

Finally, if you need funds during an emergency, you can pledge your fixed deposit as a collateral security and avail a loan against it. Generally, the interest rate is only 1-2% higher than what you earn on the FD. So, go ahead and invest in the best FDs to make the most of your savings.