Personal Blog | Financetopia

An FD is an ideal means of investment to enable one’s financial security. However, people often fail to understand its importance and its correct use, especially at the time of financial distress. In times of the credit crunch, many people will tend to break their FDs to generate funds, though this is not a wise decision to manage one’s financial crisis.  Many people are not aware of the fact that an FD can be used to take a loan. This is a convenient and feasible option that provides a variety of benefits. These are listed below: Amount of loan: The loan sanctioned against an FD is granted on 70%-95% of the Fixed deposit’s value. Thus, the loan can be quickly paid off.  Interest rate and processing fees: The interest rate and processing fees charged against a loan on FD are comparatively less because the borrower is already a customer of the Bank.  Tenure: Unlike other loans, there is no fixed tenure imposed...

Fixed Deposits or FD is one of the most loved avenues of investment among the depositors these days. The reasons are many why people like to invest their hard-earned money in FD  is because of the attractive returns they offer, which is not guaranteed in other forms of deposits like a savings account or current account. The rate of returns on fixed deposits is higher as compared to savings or current account. Unlike mutual funds, you do not face any risk while investing your money. Below are some of the reasons which make FD an attractive investment option: 1) It is flexible, you can invest your money till you want and select the tenure as well based on your requirement. 2) It is risk-free as you don't have to face risks like other deposits, including ETFs or mutual funds where there is no guarantee of your money. 3) You can take a loan against your FD and meet your urgent require...

Investing in any scheme or deposit is not an easy task. You need to take into account their pros and cons as well. You should choose an investment option that offers high returns if you are confused between investment options like Fixed Deposits, Investment bonds, or gold bonds. You can have a look at the benefits they are offering to you and whether your investment will give you high returns or not. Among all the above-listed options choosing a fixed deposit scheme would be beneficial for you. The reason is that it offers you secured and guaranteed returns, unlike other deposit schemes which depend mainly on market fluctuations like mutual funds. The benefits of opening an FD: A fixed deposit is a scheme in which you need to invest for a specific period at a fixed rate of interest, and you earn interest on your invested amount. Senior citizens are offered a high rate of interest as compared to normal citizens. Another ...

Fixed deposit account  Investing is not easy, especially when there is a risk factor involved. Thus, it is important to invest as per your risk appetite. And for those whose risk appetite is low fixed deposit is one of the best options. There are many reasons for considering a fixed deposit account: 1. Higher Interest than Savings : When you just save your money, and it’s lying idle in your savings bank account, all that money could muster, is the interest of 4% or below. Whereas in the case of fixed deposit your interest can go up to 8%, even 9%. 2. Benefits for Senior citizens : In the case of a fixed deposit, senior citizens get more benefits in terms of the higher rate of interest. Also, for senior citizens interest income is tax-free up to Rs. 50,000. 3. Regular Income : You can even receive interest earned on your fixed deposit regularly if you choose to. 4. Guaranteed returns : It is one of the popular features ...