One of the most burdensome aspects of creating a financial strategy is understanding which investment instruments best meet your monetary purposes. If you go ask people for financial advice, everyone has their own version. This will confuse you for sure. However, this is where this guide can come in handy. Read this blog post till the end to understand why investing in an FD could be the safest investment decision you will ever make.
Is Your Money Safe in Fixed Deposit Scheme?
Your bank investment is protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC) plan. So, even if the bank with an FD gets into any unlikely trouble, your money will be safe.
Why is Fixed Deposit a Good Option
FDs are among the most secure investing options compared to stocks or other market-linked instruments. With minimal volatility, the fund amount set aside in FDs is an excellent strategy to safeguard the safety of your wealth.
This is because fixed deposit accounts aren’t affected by market fluctuations. So, once you invest, you can expect guaranteed and stable returns.
Fixed Deposits Provide Security
Aside from the risk aversion discussed above, the fund safety can also be evaluated using ratings offered by bodies such as CRISIL. Moreover, the FAAA rating is the highest for investment schemes, indicating high interest and fund security.
Prioritising FD products with ‘FAAA’ CRISIL ratings and those that offer great FD interest rates is an ideal method to balance your money without limiting your earnings.
With the power of compounding, one can begin at a young age and grow their wealth. Compounding allows a small asset to develop into an enormous amount when the compounded interest is invested again with the principal sum over a few months to many years. Many banks offer great growth opportunities with high-interest rates. All this is possible only because of compounding.
Leverage Cumulative Fixed Deposits
These FDs are ideal for people who do not want monthly interest payments because the interest is paid and the principal is at maturity.
As a result, these are also called money multiplier schemes. In contrast, a non-cumulative FD system pays interest at predetermined intervals.
You can start a fixed deposit account today with a reputed bank like IndusInd Bank. The entire process is easy and requires basic documents like Aadhar and PAN cards. The best part is, you don’t have to visit the physical branch and stand in long queues. You can open an FD account online through video KYC, thanks to the internet. The process is seamless. We say, why wait? Get one opened today!
Simply put, fixed deposit accounts are fantastic investment instruments for investors who do not wish to take any risks. If you want to keep your money for a long time and are interested in growing your wealth at a steady rate, consider opening an FD account.
Still got any questions? Ask us in the comments!