Discover the Advantages of Investing in Fixed Deposits
Securing your financial future is a personal responsibility, and selecting the right investment option is crucial for achieving high returns. While many investment options are subject to market risks, fixed deposits remain unaffected by market volatility.
They offer high returns and are simple to understand. Invest in Shriram Fixed Deposit to grow your wealth and ensure financial stability.
Key Highlights:Fixed deposit is one of the safest and simplest investment ventures in India.Shriram Fixed Deposit is rated " [ICRA] AA+ (Stable)" by ICRA and "IND AA+/Stable" by India Ratings and Research, making it one of the most stable. It also provides interest rates as high as 9.40%* p.a., including an additional 0.50%* p.a. for senior citizens and 0.10%* p.a.. for women depositors. It offers great flexibility with its tenure, starting from 12 to 60 months. |
Benefits of Fixed Deposits
Several financial avenues are available today that help individuals secure their future and aid their money to grow steadily. You will need more than just saving your money to beat the rising cost of living or inflation.
Therefore, selecting a safe and steady investment avenue is pivotal for every investor. Before choosing any option, we need to understand its advantages. Fixed deposit offers several benefits, some of which are:
Simplicity:
The first and foremost advantage of an FD is simplicity. Opening an FD account anywhere is one of the easiest tasks, and understanding how it works is even simpler. Suppose you invest ₹1 lakh at 7.80%* p.a. for 1 year. At the end of your tenure, you will get ₹7,800 as the total profit, irrespective of the market status.
As the investment amount and interest rate are fixed, you will know exactly how much money you will get at the end of your tenure. You can also use the FD calculator to calculate your returns at the end of your tenure. Moreover, unlike other investments, there is no need to track the investment continuously in an FD.
Funds for an Emergency:
Your FD can also act as an emergency fund for any unexpected incidents that might happen in the future. You can break your FD and withdraw the money, which might incur bank penalties and loss of possible interest amount. But rather than breaking, you can take a loan against your fixed deposits.
Moreover, it can also be used to meet any planned future expenses. The total earnings for the tenure are fixed, and you can plan accordingly to cover those expenses.
Special Additions:
The interest rate of FD is great because of the safety and security it provides. There are special additional benefits for senior citizens and women as well. The usual interest in Shriram Fixed Deposit can go up to 9.40%* p.a.. on your investment. This is inclusive of 0.50%* p.a.. for senior citizens and 0.10%* p.a.. for women. The increase in interest gives them extra support.
Benefit of Compounding:
Fixed deposit is generally divided into two types: cumulative deposit and non-cumulative deposit. In the cumulative deposit option, interest is added to the principal amount repeatedly, increasing the total amount upon which interest is generated.
The total interest is paid along with the principal after the maturity of the investment. However, in non-cumulative deposits, the interest is paid to the investors at regular intervals on a monthly, quarterly, half-yearly or yearly basis, as the investor selects.
It is for people who want a regular income from their investments. The deposit amount starts from ₹5000 and can go up to ₹10 crore per transaction.
Security and Stability:
People select fixed deposits primarily because they are one of the most stable and safest forms of investment with a high return. The market trends do not influence the FD. It is also unaffected by external events, which makes it the stable form of investment. Shriram Fixed Deposit is rated " [ICRA] AA+ (Stable)" by ICRA and "IND AA+/Stable" by India Ratings and Research, making it the perfect choice for anyone looking to earn stable income from their investment.
Risk Factors:
Investment options such as trading, mutual funds, and equities generate higher returns compared to fixed deposits. However, it is important to remember that these alternatives also come with significantly higher risks.
Having a low risk on your investment is one of the advantages of an FD. As it does not fluctuate with the market, FD decreases the chance of capital loss and uneven growth.
Conclusion
Everybody plans to increase their wealth over time, and multiple avenues are available to achieve that. Fixed deposit is one path everyone should consider when looking for safe and steady investment options.
It is a really simple and effective investment option that provides benefits like assured high returns, risk-free investment, compounding, and easy liquidity, making it an ideal choice for an investment to include in your portfolio.
In the long run, these benefits will help you create considerable wealth, manage the rising cost of living and upgrade your overall quality of life.
