Investing in FD Scheme to maximize your savings

Every one of us wants our hard earned money to be useful and secure in our retirement period. Unfortunately, once you retire, the savings that you have accumulated over the years can become the only corpus on which you will have to depend on, for the rest of your days. Considering this, one of the major ways in which one can facilitate the growth of this corpus is by investing this money in a safe and profitable investment instrument. Fixed Deposits can be very useful here as an option for maximizing your wealth as well as for safeguarding it for your future.

Why Fixed Deposits?

Fixed Deposits encourage depositors to set aside extra cash for a specific tenure as it doesn't enable you to pull back your cash before the tenure or lock-in period ends. With FD, you can get a higher rate of interest than a normal bank account with the assurance of guaranteed returns. As an investor, you can also avail loan against Fixed Deposit account up to 70 % - 90% measure of your principal amount. The depositor can choose to get FD returns on a maturity, monthly, quarterly or yearly basis. Against your fixed deposits account, you can likewise get a credit card from the bank as several banks and monetary foundations give credit against 70-90% of the FD amount. While most banks impose a penalty in case of premature withdrawal, it is beneficial for investors to retain your Fixed Deposit account till it matures.

Salient Features and Benefits

The features and benefits of Fixed Deposits include the following:

One can close FDs before maturity: Fixed Deposits empowers investors to acquire a higher rate of interest than a standard bank account. On the off chance that the investor needs to withdraw the deposited amount before the concurred mature time frame, banks will charge a penalty on the fixed deposit account. In case of an emergency, wherein an investor might need emergency funds, he/she can choose to close your fixed deposit account before maturity or settle the expenses with the help of a loan against the Fixed Deposit. In case of a loan, the investor would be able to avail the loan easily as the bank has Fixed Deposit as collateral for your loan.

Tax Saving Fixed Deposits: According to the Income Tax Act, 1961 interests acquiring on the fixed deposits is exempted up to Rs 10,000. However, in case an investor feels that they would still have a lot of tax liabilities, tax saving FDs can be a great boon. In a tax saver FD, the principal amount invested by the investor is exempted from taxes. Under these fixed deposits, the invested amount is locked in for a time of 5 years. Apart from this, senior citizens who are investing in Fixed Deposits can also get greater benefits in terms of their tax payments.

Higher Interest Rates for Senior Citizens: Banks and various organizations offer special Fixed Deposits schemes with higher interest rates for senior citizens. As a rule, banks and money related establishments give 0.50% more than the bank FD rates for others. In addition to that, Senior citizens can also get additional benefits in terms of the interest rates when they choose for an NBFC like Bajaj Finance. The company has a specific Fixed Deposit for Senior Citizen which offers a plethora of benefits including higher interest rates, flexible tenors and online account management adding to their convenience.

FD Laddering: One of the best ways to manage your short term as well as long-term financial goals through Fixed Deposits, is through laddering. This concept describes creating multiple FD accounts of different tenures, according to your financial need. Based on that, you can meet your major expenses periodically when every Fixed Deposit that you create matures. Prominent NBFC, Bajaj Finance with a CRISIL rating of FAAA is one of the top choices for creating multiple FDs with high interest rates while guaranteeing the security of your savings.

Considering the various benefits and features of Fixed Deposits that investors can avail, it is clear that investing in FDs could be very fruitful for investors in the long term as well as short term. With the safety and security that is guaranteed through Fixed Deposits, it would be beneficial for individuals with all age groups to add Fixed Deposits to their investment portfolio. NBFCs like Bajaj Finance even offer additional benefits such as flexible tenors and online account management which adds convenience and ease to Fixed Deposits. Moreover, if you are a senior citizen or if you want to create FD for your parents or grandparents, FD for Senior Citizens by Bajaj Finance is a great option to ensure financial security in the longer period.