Opening a fixed deposit account is the preferred mode of investment for most Indian investors. This secure and stable medium of saving helps you keep your wealth safe while fetching a fixed amount of interest on it. Hence, FDs are not only a safe option but also a smart way to invest the money you don’t need in the immediate future.
What Makes FDs a Good Investment Avenue?
Before investing money through any financial instrument, an investor’s first thought is the risk factor. Most investment methods have some monetary risk involved, which you must consider and prepare before choosing it. However, a fixed deposit ensures you a fixed amount of money at the time of investment. Thus, you are aware of the profit you will make during the tenure even before investing.
Fixed deposit accounts are not influenced by the market, which means the rate of interest remains the same throughout your tenure. This can enable the investor to plan their finances better for the future. Also, opening an FD with a reputed financial institution such as IndusInd Bank can provide you with extra benefits and security.
Things to Keep in Mind Before Opening a High-Interest FD:
While fixed deposits are one of the safest investment options, there are some factors that you must consider before opening a high-interest FD account. Read on to know more.
- Eligibility Criteria
Before opening an FD, the first step is to check the eligibility criteria of multiple lenders. While the essential requirement will be the same across various financial institutions, there might be slight differences that you must be aware of before applying. Also, check the documents required to open the account beforehand. IndusInd Bank has simple eligibility criteria and a convenient application process for its online fixed deposit accounts.
- Choose Your Lender Wisely
If you have a large amount you wish to invest in an FD, it is suitable to opt for a high-interest FD. Hence, it is crucial to choose the right lender to provide highest FD interest rates for your amount. Compare different lenders and their FD rates along with added facilities. IndusInd Bank FD rates are generally higher than its competitors, and investors can enjoy mobile and net banking benefits.
- Flexible Tenure and Withdrawal Penalty
Most lenders offer a lock-in period that ranges from 7 days to 10 years. However, you must ensure that the lender provides a flexible tenure that allows premature withdrawals in an emergency. Another thing to consider is how much penalty the lender charges on withdrawing prematurely. IndusInd Bank offers a flexible tenure for the convenience of customers.
- Split Your Funds
A smart strategy for investing in a high-interest FD is to split up your money into multiple accounts. This hack will prove extremely beneficial if you ever need to withdraw money from your account as you would not have to withdraw the entire amount from the FD. Thus, the other FDs can continue to gain interest for a long time.
- Reinvestment of Interest
You can reinvest your earned interest and increase the principal amount of your FD. This allows you to make more profits by reinvesting both the interest and principal amount in the fixed deposit. This is an excellent strategy if your prime financial goal is to earn maximum profits from the FD and not a steady income every month or quarter.
- Online FD Facility
Lastly, another important factor that you need to check is whether you can open the FD account online. Considering the current pandemic, a lot of people are not very comfortable to visit the bank. In such a scenario, online FD account can be of great help. The facility will enable you to open an FD account from the comfort of your home. IndusInd Bank enables you to open an FD online in three simple steps. All you need to do is fill the online application form, check the desired FD type and authenticate yourself. Lastly, complete the application and transfer fund online.
Looking for the Best Fixed Deposit Plan?
IndusInd Bank offers FD schemes with exciting features and convenient application process. You can apply online through the online fixed deposit facility and reap added features including flexibility of tenure, partial withdrawals, tax saver deposits and more. What’s more, IndusInd bank FD rates are competitive with special interest rates for senior citizens. Hence, opening a high-interest FD is a credible way to make your hard-earned money work for you.
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