When it comes to keeping your hard-earned money safe while ensuring that it yields a good return, there can’t be a better option than a fixed deposit. Fixed Deposits are secured investment options that have higher interest rates for a fixed period of time. FDs are ideal for people who look for safe investment options. Opening a fixed deposit has nowadays become easier because anybody can open them online. But, is online FD a safe option? Let’s read more about the benefits of FD, how to open it and if you can go for the online fixed deposit.
Why Invest in a Fixed Deposit?
Let’s look at the main reasons that make fixed deposit a lucrative investment option:
Secure Investment
Though mutual funds and stocks yield a high return, these are volatile in nature, which makes them an unsecured option. Any kind of negative impact on the market will directly affect your return. A fixed deposit on the other hand is a secure investment, not affected by market volatility.
Better Interest Rate
The interest rate offered on principal amount is higher in a fixed deposit than a savings account. If you are a senior citizen, the rate of interest will be even higher than a regular fixed deposit. It could be a great way to save for your future.
Tax Saving
Some of the long-tenure fixed deposits come with a tax saving option. If your interest amount exceeds a fixed slab, you can submit relevant documents to claim tax benefits on the amount.
Making a Choice Between Offline and Online Fixed Deposit
Opening a fixed deposit is simple and easy. You can choose the conventional way of visiting a bank branch, submitting documents and making a cheque payment.
Many individuals are, however, preferring the online FD option because of the flexibility it offers. IndusInd Bank offers you the option to open an FD online from the comfort of your home. You can visit the bank’s website, check out the FD plans available, fill out the form, and open a fixed deposit within a couple of minutes. Another advantage of online fixed deposit is it keeps you safe, especially in times of uncertain situations such as COVID-19. You don’t have to visit different banks, interact with people, which itself lowers the risk of getting infected by the virus.
Is Online Fixed Deposit Safe?
Yes, online fixed deposits are as safe as the FDs opened by visiting a bank branch. The process is, however, more simpleand time saving.
How to Open an Online Fixed Deposit?
The process of opening an online FD is very straightforward. Banks like IndusInd Bank give their customers the option to open the FD online. All they need to do is fill out the form, choose their preferred FD plan after doing a comparison, submit the relevant documents, and it’s done.
Parting Thoughts
An online fixed deposit gives you the convenience to invest from the comfort of your home. It is completely safe, so you can go ahead with executing your savings plan for a better future.
