How can Fixed Deposits be helpful to save and enjoy simultaneously?

Fixed Deposits

Last Updated on December 31, 2022 by Tabraiz

When you search for different options to invest your money securely, you can opt for a fixed deposit investment. It is the best as it is less time consuming and quick process. As you are paying tax more than you can afford from your hard-earned money and it can be difficult. But with the help of a tax-saving fixed deposit, you can easily ensure to avoid tax upto your eligibility limit. 

However, a tax saving fixed deposit comes with a lock-in period of 5 years. Before that, you will not be able to withdraw your deposit. The equity shares and any other investment options are always available but might contain risks as well. But in the case of a fixed deposit, no risk is involved. With a fixed deposit, you will receive the interest you gain from the investment when tenure end.

What does a fixed deposit mean?

When it comes to fixed deposits, it is an investment option that will allow you to deposit your savings for a fixed tenure. It will help you to earn a fixed rate of interest for the tenure you choose. Once the deposit tenure ends, you can make the withdrawal of the amount along with the interest rate. However, with the help of fixed deposit investment, it is always available with the NBFCs or any other financial institutions. 

How does a fixed deposit function?

When you invest in a fixed deposit, your funds will be locked in a tenure that you select. And the amount that you deposit will earn interest on a cumulative basis. Once a specific period is over,  the interest that you make will be added to the principal amount. However, it will give you a humongous growth as well as the benefit you deserve. 

How can you open a fixed deposit account?

To open a fixed deposit account is very easy as it requires only minimal documentation. You can either do it through online modes or by any offline modes. However, if you opt online manner, you will be able to apply for the fixed deposit investment without any need to visit any financial lender manually. 

Benefits acquired in a Fixed Deposit Account:

There are various benefits when you opt for a fixed deposit investment. They are as follows:

  • It will offer you a higher interest rate when compared to any other savings investment.
  • It is considered as a safe investment with utmost certainty, stable interest rates and guaranteed returns.
  • It does not involve any risk of loss of principal amount.
  • You will acquire complete freedom to select for periodic interest payouts.
  • The returns from the fixed deposits will not be affected by market fluctuations.


Easy ways to Invest efficiently in fixed deposits:

Given below are the few ways you must follow to maximise your returns. 

Compare and select the best rate possible:

You must never limit your choice to a particular financial institution with which you previously have a savings account, as the other lenders might just give you more attractive offers.

Always plan:

Let it be a more particular purchase or even a small home renovation. It is necessary to plan it if you want to achieve your savings goal efficiently. When it comes to a fixed deposit, the longer the tenure, the higher will the returns be. You must always select the tenure carefully by utilising a fixed deposit calculator to plan your investment meticulously. 

Reinvest in an interest income:

When it comes to fixed deposit investments, there are two options. You can either withdraw the interest earned or plan on reinvesting it. If you plan to reinvest your earnings, it will maximise your savings. However, you will always reap the benefit of compound interest and will receive the best returns. 

You must split your Fixed Deposits:

It may seem like a strange idea to split your fixed deposit investment, it will give you an added benefit.  The TDS is always charged 10 percent on your fixed deposit if the interest exceeds to ten thousand rupees. You can always avoid TDS by splitting your fixed deposit. However, it will be beneficial to you to avoid any breaking of your fixed deposit and lose out on any interests during any financial emergency. 

How secure is Shriram Transport Finance fixed deposit investment:

Shriram Transport Finance Company (STFC) is one of the greatest NBFCs that provide you financial assistance for any individuals and businesses that are in need. STFC offers fixed deposits with the best interest rates, which are relatively higher than any other financial institution in the market. STFC offers any financial aid for fulfilling all of your financial requirements. It provides extensive choices of financial products such as loans, deposits and insurance options for all. STFC also offers two fixed deposit options such as cumulative and non-cumulative deposits. 

You can easily avail of any loans or for your business that desires and accomplish your requirements. If you want to save your money for the future you can by investing in a fixed deposit option from STFC. You can also protect yourself and your loved ones with a stable life cover choices with STFC. You will receive an extensive customer support and clear guidance to ensure that your financial requirements are accomplished. 

Apart from this if you are interested to know more about Become a Loan Investor then visit our Wealth category