Why are FD investments important?

You need money to fulfil all your needs, including luxuries and essentials. It is necessary to keep track of your expenses and savings to eliminate financial problems in future. Every person should earn and save money to lead an independent life and cater to their needs without dependency.

Therefore, banks have introduced a Fixed Deposit, providing a fixed interest rate during the entire investment tenure. Remember, it is higher than a Savings Account. You get the fixed interest till the account matures. Your money gets locked in for a fixed period, which you can decide according to your investment goals.


Over the years, Fixed Deposits have evolved into a highly flexible and versatile product with many benefits. They promote savings and hold the invested amount for a fixed time, inadvertently saving money as premature withdrawals lead to penalties, encouraging savings. 

Otherwise, you can also open a Recurring Deposit Account for six months to 10 years, where you invest a fixed monthly amount and maximise savings by earning interest on it. You can choose to receive the interest at regular intervals until it matures. There is no specific amount to invest in this deposit.

Assured returns

Fixed Deposits give assured returns on investment. They are pre-decided and fixed for a specific tenure. Thus equity market fluctuations and other factors do not impact expected returns, making them one of the safest investment options.

Tenure flexibility

These investment products offer the flexibility of choosing investment tenure. Therefore, an investor can select a term as per the requirements. The liquidation of FD is easy. You can opt for it online to save time, travel, and effort. Premature withdrawals attract penalty charges. Therefore, assess your tenure and investment amount wisely.

Changes in the banking system have relieved customers from standing in long queues for hours altogether for minor tasks like checking account balances or fund withdrawals. Nowadays, you can use the Banking app to meet all your financial needs, whether addressing a query, checking your passbook, transferring funds, or tracking bill payments.

Who is it best for?

An RD is ideal for individuals investing small amounts of money. The deposit frequency is monthly, quarterly, half-yearly, and yearly, with a tenure of over six months to 10 years. You can invest an amount as low as Rs. 100. The interest payouts occur only on maturity. The FD Account has benefits like high-interest rates, assured returns, flexible tenure, and more. You can also use the Deposit calculator to evaluate the interest you can get for the chosen tenure.


Although both deposits are similar, each has features that can benefit you depending on your goals. RD is an easy investment option as you deposit small amounts over time. On the other hand, the Term Deposit is more flexible concerning interest payouts. You can also save taxes with a five-year deposit. Wait no longer to invest and achieve your financial goals.

Adrianna Tori

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