Tuesday 18th June 2019,
Centre County Business

Will 2018 be a good time to invest in FD?

Will 2018 be a good time to invest in FD?

We are almost half way through 2018 and have an idea of where of our investments are leading. However, the market volatility increases day by day which increases the risks associated with our investments. As a result, many individuals are considering transferring their investment into safer schemes.

Talk about safe investment options and fixed deposits are the first that cross our mind. Upcoming low-risk investment schemes like Fixed Maturity Plans and various mutual funds also appear to be as good as fixed deposits. Fixed Deposits are still a lucrative investment option, since they guarantee fixed returns on the investment. With the increasing risks in the market, there are numerous reasons why 2018 is a perfect time to invest your hard-earned money in fixed deposits.

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Fixed deposits are All Time Safe Investments

First of all, no amount of market fluctuations can affect the money you have invested in Fixed Deposits. The rate of interest provided on mutual funds varies with the market fluctuations. Along with that, FMPs also have variable rate of interest along with which they are closed end investments. You can only invest in FMPs during specific periods when they are open for subscription and they have a fixed maturity period of minimum 3 years. Fixed deposits on the other hand, can be opened with any bank or NBFC at any time and the minimum maturity period for FDs is just 12 months.

Guaranteed returns and Loan Options

As fixed deposits are not affected by market fluctuations, the rate of return is fixed. Moreover, with the recent government regulations, financial institutions are bound to provide an option of early withdrawal without any additional charges. Moreover, banks and NBFCs also allow you to pledge your fixed deposit amount to take a loan. Hence, you can meet your urgent liquidity requirements without causing a dent on your investment plan. Bajaj Finance provides loans against fixed deposits with an ROI of 2% above the existing fixed deposit rate. This is in addition to no prepayment and foreclosure charges. Hence, fixed deposits not only become a return generating investment, but also serve as a vehicle to increase liquidity in times of need.

Flexible Tenor & High Interest Rates with NBFCs

One of the problems that investors expecting quick returns have with fixed deposit is its rather longer term of investment. But, now the tenors have been reduced for fixed deposit investments. Nowadays the tenures of FD investments are much flexible beginning with six months. When you invest in FD through a bank you get a fixed return of 4% to 6% on your investment amount. However, with NBFCs, this value can be as high as 7%.  While the investment in FMPs yields a return up to 8%, NBFCs like Bajaj Finance provide FD interest rates that reach as high as 8.20% under special pre-approved schemes for senior citizens. Thus, the dilemma of fixed deposits generating lower returns is entirely eliminated. With other exciting offers on FDs like low deposit amounts, flexible tenors, special benefits for senior citizens and high stability & credibility offered by NBFCs like Bajaj Finance, investing in fixed deposits is without a doubt, a favourable option in 2018.

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