A Fixed Deposit is a stable financial instrument that yields guaranteed results over a fixed tenure. The USP of a Fixed Deposit account is that it involves a high rate of interest unlike most other savings and recurring deposit accounts. Once you have decided on your principle amount and tenure for your Fixed Deposit account, you can sit back and relax as your money will grow. Fixed Deposits are investment schemes offered by both banking and non-banking financing companies. A fixed tenure is essentially why this financial product gets its name.
What Are The Benefits Of a Fixed Deposit?
The first and foremost benefit of having a Fixed Deposit account is that it encourages savings. With such an account, you will inadvertently save money with the principle amount that you put in at the very beginning. Although you may be charged a penalty on premature closure, but you can rest assured that liquidation of your funds can be done in the event of any emergency. Fixed Deposit accounts attract tax benefits under section 80C of the Income Tax Act, 1961.
A Fixed Deposit account with a bank or a non-banking financial institution is one of the safest methods of saving money. The money that you put in at the very beginning remains unaffected by market trends and fluctuations. This in itself is incentive enough for most people to save with this financial instrument.
The flexibility offered by most banks when it comes to tenure of a Fixed Deposit account is also quite lucrative. Ranging from 7 days to 10 years in most cases, Fixed Deposit accounts should surely form a chunk of your retirement plan.
Who Can Open a Fixed Deposit Account?
There is no particular cap on who can open such an account with a bank, but to name a few, any Indian resident, Nonresident Indian, senior citizen, minors, Sole proprietorship, Partnership Firms, Companies, Societies, Clubs, etcetera can open a Fixed Deposit Account. As long as you have your KYC details which are your identity and address proof, you are eligible to open such an account with most finance organizations.
How to Open a Fixed Deposit Account?
Once you have made up your mind about the amount and tenure of your Fixed Deposit, you can easily open your account with any financial institution. The advent of technology has made it very easy for people to invest their moneys through the right channel at any given time and place. IndusInd Bank, for instance, gives you the ease of pulling in your funds from your other accounts. With the click of a finger you can easily be on your way to a secure future with guaranteed high returns for your money. A healthy savings plan is very important in uncertain times like the ones we live in. Your retirement fund can easily be your emergency fund when you have a Fixed Deposit account. This flexibility guarantees a good night’s sleep as you know your money is safe. Visit your bank or its website today to open your Fixed Deposit account.
