Today, in India, there are many investment options, like stocks, mutual funds, shares, etc., all of which promise to offer high returns. Yet many people still prefer investing in Fixed Deposits or FDs. It is one of the most traditional and popular investment options in India as it is considered the safest avenue.
Fixed deposits allow you to park your surplus funds and get assured returns in the form of interest, which is much higher than the interest rate offered by regular savings accounts. It is a great investment option for you if you are just starting your savings or investment journey and/or don’t want to take risks.
Unlike in mutual funds or stocks, where the returns you get depend on the market movement, in FDs, the external factors have no bearing on the returns you get. In FD, you invest a lump sum amount for a fixed period, ranging up to 5 years and at the end of the term, you get assured returns, i.e., you get the principal amount and the accrued interest.
To start investing in FD, you must open an FD account. You can open this account with a bank or any NBFC. Traditionally, to open an FD account, you had to visit the nearest branch, fill in the form, and stand in long queues. But today, as all financial institutions offer full digital services, you can open a fixed deposit 2024 account online.
The process of opening FD account online is quite simple, and you can do it from anywhere and anytime at your convenience. You just have to follow the following simple steps:
- Visit the official website of your financial institution where you want to open the FD account
- Browse to the FD section and click on the open a new account button
- Fill out the application with a few basic details like full name and date of birth
- Next, add you contact details, like phone number and email
- Choose the FD scheme you want to invest in
- Verify the KYC (know your customer) details
- Enter the bank details
- Make your payment, i.e., deposit the investment amount and your FD account is opened
Yes, opening a fixed deposit in 2024 is that simple. You can do it even if you don’t have any technical knowledge. The steps are clearly mentioned on the website and are quite self-explanatory. Even if you get stuck anywhere or need help with something, you can get in touch with the customer care team, and a representative will guide you through the process.
Now that you are aware of the steps to open fixed deposit 2024 online, it would help to know its benefits.
High interest rates
As mentioned earlier, investing in an FD account allows you to get high interest compared to a savings account. If you are a senior citizen, you get an even higher interest return. Today, many NBFCs offer as high interest as 7.25% on FDs.
The fd interest rate you get greatly depends on the interest payout period, the amount you invest and the deposit term you choose. The high-interest returns allow you to grow your savings faster and accumulate a significant corpus for your future goals.
Assured returns
The most significant benefit of opening an FD account is that you get assured returns, which makes it a lucrative investment option for those investors who don’t want to take risks. This means irrespective of the market conditions, you will get the returns at the fixed interest rate, and your maturity value will be higher than the investment amount at the end of the investment term.
Flexibility
When you open an FD account, you have the full flexibility to choose the investment amount, the investment tenure, and the interest payout period. You can invest a small amount of Rs. 5000 and invest up to Rs. 5 crore.
Also, although FD investment comes with a lock-in period, you can choose the investment tenure ranging from six months to five years based on your investment goals and expected returns.
Lastly, you can choose the interest payout period as per your needs. You can choose to get the interest credited monthly, quarterly, semi-annually, or annually. Generally, investment advisors recommend choosing a longer interest payout period as it allows you to get higher interest.
Secures your retirement life
Retirement planning is an integral part of the overall financial planning. As part of your long-term retirement goal, applying for an FD account can help you accumulate the desired corpus. You can periodically invest the surplus funds in FD throughout your working years and let your money grow over the years.
The lock-in period allows you to stay disciplined with your investment and refrain from liquidating the funds. Thus, it helps you ensure that you live a financially independent life after you hang your boots.
Create an emergency fund pool
Another notable benefit of a fixed deposit account is that you can create an emergency fund pool that you can use to get over the unpleasant surprises that life may throw at you at any time.
To Conclude
Now that you are aware of the steps to open a fixed deposit 2024 and its benefits, it is high time that you open an FD account and take your first step towards accomplishing your long-term goals.
