invested in Fixed deposit (FD) is considered to be one of the best investment options for those who are looking for good stable returns without the volatile market risk themselves. FD Better returns are offered than any savings account but this advantage of keeping your money in FD goes well beyond the good rate of return. FD investment comes with several benefits which include insurance and healthcare, and in case of FDs for at least 5 years, the investor is also entitled to income tax exemption.
According to experts, FD investments are a smart choice especially during such volatile times. Here are 5 benefits of FD that make it a good investment option beyond just good return on money.
Withdrawal facility: Bank customers are eligible for overdraft facility against their FDs. This facility can be used by the customers to meet their sudden cash demand in case of any emergency.
Tax Exemption: Investment in FD also gets the benefit of tax exemption. For investments made in FDs under tax saving schemes, customers are allowed to claim tax exemption under section 80C of the Income Tax Act, 1961.
Assured Returns: FDs do not potentially bring any risk to your investment and unlike other investment instruments in the market, the returns do not fluctuate. For beginners, investing in FDs can help in developing the habit of investing as they can invest in bank FDs with even smaller amounts for shorter tenures ranging from 15 days to 3 months.
Insurance and Healthcare: To attract customers to invest in FDs, many banks are offering free insurance policies and other health care benefits along with their investment plans.
Ease of managing FD investments: With the advent of internet, it has become easier for the customers to manage their banking. Now, they can manage their money through phone or internet connected laptop. Unlike earlier, opening an FD account and investing money does not require a lengthy formal process and bank customers can use net banking to invest in GD in a matter of minutes.
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