People are fearful of their finances, especially due to the market volatility and financial uncertainty. We understand that you are stressed thinking about where you should invest your money in the current changing financial setting.
Fixed deposits (FD) are a great and safe option that has been the most preferred choice of investment for decades. This is due to the low-risk factor that provides a predictable and stable return on investment.
However, many people still have the question why investing in fixed deposit is worth it. We are here to decipher this question and offer you valid arguments as to why fixed deposits are worth your investment.
Remember, for long-term investments without any risk, fixed deposits are the perfect option. However, the benefits of FD do not end here. They also offer great flexibility, tax advantages, and guaranteed returns. Here, we will explore the many benefits of FD and why it is the best investment option for you.
1. Guaranteed and Predictable Returns:
When looking for investment options, the most important aspect we prioritize is the guaranteed and predictable returns. You don’t have to stress over the unpredictability of your returns like investing in stocks or mutual funds.
Here, you will have full transparency, and you will know exactly the return you will receive at the end of the tenure. This is because FDs offer a fixed rate of interest throughout your investment time.
Moreover, this offers guaranteed security and is perfect for conservative investors who do not trust high-risk and high-reward mutual funds. Furthermore, FDs also provide you with a steady income. This makes your investment safe and highly beneficial for retirees.
2. Capital Protection and Low Risk:
Your fixed deposit is almost synonymous with protecting your capital in a low-risk investment. Hence, FD is the safest investment option out there. Moreover, when you invest in an FD, you directly secure your principal amount.
The best part is that FD is mostly offered by reputable institutions like banks that offer maximum security over your finances.
Additionally, this kind of security is beneficial for you during times of market volatility or economic downturns. Hence, this is the ideal option for people with a low tolerance for risk and who cannot afford to risk their savings.
3. Flexible Tenure Options:
Another great benefit of fixed deposits is the flexible nature that they offer throughout the period of your investment. You will find many tenure choices that can be for a few months to even a decade or more.
This kind of flexibility is significant to help you plan and manage your savings and finances. Hence, whether you are looking to invest for a short period or planning for your retirement, the flexibility options allow you to choose any option.
Moreover, you can also reinvest after maturity. This will continue to multiply your finances over time.
4. Tax Benefits Under Specific Conditions:
If the above points do not convince you, you will be interested to know that you will also receive tax benefits when you invest in fixed deposits.
Many nations offer certain kinds of FD that are tax-saving and are applicable for different tax deductions. Under the section of the Income Tax Act, these tax-saving FDs mostly come with a locked-in period.
However, the interest you earn from it is exempted from taxes. However, you should know that these tax benefits vary from country to country.
5. Liquidity and Easy Access to Funds:
Fixed deposits are a long-term investment plan that offers easy access to funds and liquidity. This is a great advantage for investors, as many financial institutions will allow premature withdrawal of finances (with a small penalty).
Moreover, this is especially beneficial when you meet with an emergency situation that requires immediate withdrawal. This is a great feature when you realize that your funds are secure and you can access them when you want.
Wrapping Up:
Fixed deposits have always been the most secure and flexible investment option, especially in an age of financial uncertainty and market volatility. You should invest your finances in an FD if you want predictable returns and capital protection.
Moreover, FDs offer the best stable investment strategy that is perfect for your long-term financial goals. Additionally, you can access your money any time you want without stressing over the locked-in factor offered by other investment options.
Lastly, unlike uncertain investment options like mutual funds or stocks, your money will be safe, and you will be at peace while you prepare for emergency situations or plan for your retirement.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.
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