Financial standing indicates the strength of an individual’s or a company’s position. Your financial standing dictates your present and future. In the present, you and your family can lead a comfortable life. You can meet various goals, fulfil desires, and secure your loved one’s future. Evidently, you should work towards having a solid financial standing. Investing provides a strong ground to build your financial standing.
Fixed Deposits, oran FD, have been a popular investment option. It is simple, secure, and profitable. You need to make a Lumpsum Investment for a specific tenure. You earn decent interest returns until the investment’s maturity. FD is an excellent investment option, so you can opt for it anytime to make decent returns. However, following are the favourable situations you should strongly consider before investing:
Lumpsum amount in hand
FD is a one-time investment option. You need to have a reasonable amount handy to invest. The minimum and maximum investment amount varies between banks. You should reach out to your preferred bank for specific details. You should also invest in FD with a significant lumpsum amount handy.
Earn reasonable interest returns
Fixed Deposit is an ideal option to explore and earn reasonable interest returns. FD investments work on an interest rate offering. You keep earning decent interest returns through your investment’s maturity. You can choose between aCumulative or Non-Cumulative FD. In a Cumulative FD, your interest earnings are clubbed with your principal investment. In Non-Cumulative FD, you receive your interest earnings periodically.
Aim for capital protection
Let us consider you have retired from your profession. You receive a handsome employer PF amount. You know that this is the only lumpsum amount you hold. Hence, you can afford to lose it. Opening a Fixed Deposit Account is a viable option here. FD is nowhere linked to markets, so it protects your capital investment and earns you good returns.
As an individual recently retired, you are categorised as a senior citizen. This makes you eligible to get a higher interest rate.
No upcoming financial requirements
FD is a long-term commitment. You should invest when you have no upcoming financial requirements. This way, you can stay invested reasonably and earn good returns. If a financial requirement arises, you can avail a Loan against your FD. You need not break your FD prematurely.
Competitive interest rates
When a competitive interest rate is offered, you should strongly consider investing. Every bank offers a different FD rates. You should scout for the best by exploring the market extensively. You can learn about a bank interest rate offering by downloading their Banking app. If the interest rate is decent, you can invest via the app.