Investing in Fixed Deposits is considered to be one of the best investment options for those who are looking for good stable returns without exposing themselves to volatile market risk. . FD gives better returns than any savings account. This advantage of keeping your money in FD goes beyond the good rate of return. FD investment comes with many benefits. In which insurance and healthcare are included and in case of FD the investor is also entitled to income tax exemption for at least 5 years.
According to experts, FD investment is a smart option especially during such uncertain times. Here are 5 benefits of FD that make it a good investment option beyond just good return on money.
overdraft facility: Bank customers can be eligible for overdraft facility against their FDs. This facility can be used by the customers to meet their sudden cash demand in case of any emergency.
tax exemption: The benefit of tax exemption is also available on investment in FD. Investments made in FDs under tax saving schemes also allow customers to claim tax exemption under Section 80C of the Income Tax Act, 1961.
assured return: FDs do not bring risk to your investment, rather, the returns do not fluctuate unlike other investments in the market. Can help in developing the habit of investing in FDs for beginners, as they can invest in bank FDs with even smaller amounts for shorter tenures ranging from 15 days to 3 months.
Insurance & HealthcareMany banks are also offering free insurance policies and other health care benefits along with their investment plans to attract customers to invest in FDs.
Ease of managing FD investmentsWith the advent of the Internet, it has become easier for the customers to manage their banking. Now they can manage their money through phone or internet connected laptop. Now opening an FD account and investing money does not require lengthy formalities and bank customers can use net banking to invest in GD in a matter of minutes.
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