Quite a variety of investment options are available in the market, from which a majority of the population resides to fixed deposits. Now fixed deposits to Indian fathers are like Colgate for Indian mothers ten years back, a symbol of long build trust and satisfaction.
A better amount of financial certainty is something fixed deposits offer which can help you when there are constant ups and downs in the market. The deposits are offered by banks as well as non banking finance companies (NBFCs). The tenure can be from 7 days to 10 years.
FDs are not market linked, so the amount of risk involved is much lesser than the stock market or parking your money in mutual funds whether equity or debt.
Fixed deposit is also called as a term deposit or time deposit. It entitles the investor to predetermined interest payments and return of the sum deposited on maturity.
Types of Fixed Deposits
>> Cumulative FDs – The interest earned on the deposit is compounded in the amount of the deposit itself and paid once on the date of the maturity. So no periodic income is not generated. It is suitable for investors looking to grow and increase there corpus.
>> Non Cumulative FDs – The interest is paid on periodic intervals like monthly, quarterly, half yearly or annual based on the option opted by the investor. So periodic income is generated. It is suitable for investors who want a regular source of income to fund day to day expenses without affecting the principal amount.
Benefits of Fixed deposits
HDFC Fixed Deposits and BAJAJ Fixed Deposits
|HDFC Fixed Deposits||BAJAJ Fixed Deposits|
|With a AAA rating from both CRISIL and ICRA for the last 25 consecutive years, HDFC deposits has delivered a consistent performance by gaining a trust of more than 6 lac depositors.||Bajaj Fixed Deposit is among the safest investment options for investors since it has a international rating of ‘BBB’ by S&P Global.|
|A resident of India can choose from a vast variety of deposit products having different maturity options from 12-84 months at competitive rates of interest supported by different features for catering the investment needs of individuals.||In some select locations investment in the deposit program can also be done through debit cards with an auto renewal facility further saving the hassle of filling renewal form again on maturity.|
|Minimum Investment amount = Rs 25000||Minimum investment amount = Rs 25000|
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