Saving money is considered quite a skill. It can pave your path towards creating a better future for you as well as your loved ones. Even saving a small portion of your monthly income can go a long way, and that is what makes it so important. However, not everyone can be that good at managing their money. And that is totally fine. Thankfully, there are a ton of money-saving mechanisms available out there which ensure you do end up saving something always. The fixed deposit scheme is one of them. Thinking what is fixed deposit and whether you can invest in it? Read on below to find out more on this!
So, what do you mean by fixed deposit?
A fixed deposit, or FD, as it is commonly known, is a popular financial instrument. It is famous because it is one of the safest and most assured ways of investment. FD guarantees an assured return on your investment, after a fixed period of time that is pre-determined.
Offered by both banks and NBFCs (Non-Banking Finance Corporations), it is quite a helpful way to save your finances for the long term. If you have any money that is lying around and will not be used for a while, you should certainly go for the FD.
How does fixed deposit work?
To make a fixed deposit, you have to start off by creating an FD account. Opening one is quite easy, so you will not really face much of a challenge there. Now, first of all, you have to invest a certain sum of money in the bank. The larger the amount is, the better, as you get a higher interest rate of return on your investment.
The tenure for the fixed deposit is also fixed while you are submitting your amount. Your FD’s tenure can vary from a period of 7-14 days to even 10 years. When you choose the interest rate, it doesn’t change regardless of any market anomalies or fluctuations.
Only when the FD matures, you will be able to withdraw your funds from the bank, paid as a lumpsum amount. The whole concept of the FD is to ensure that you are unable to withdraw your funds before the tenure ends. However, you still have a way out. If you do need the amount that you have invested, you can withdraw it by paying the penalty.
What are some features of the fixed deposit?
Now that we have answered your queries on ‘what is the meaning of fixed deposit’ and ‘how does fixed deposit work’, let us look at some of the features that make it so popular.
The returns from a fixed deposit are guaranteed by the bank and the NBFCs, therefore it enjoys a high confidence from the customers. Also, the interest rates determined at the time of your investments stay unchanged. When there are extreme movements in the markets, your interest rates may fall. As a result, fixed deposits are quite safe and trustworthy.
Flexible choices are available
The tenure that you get on your FD varies from one place to another. However, they are quite flexible, and you have lots of options on your hands. You also get to increase or decrease the interest rates offered to you, by changing the other variables involved.
Loan against Fixed Deposit
When you are in an urgent need of funds, you can also manage to get a loan against your fixed deposits. By using this method, you get instant access to funds and are able to keep the FD ongoing as well.
Get Fixed Deposit from the Airtel Thanks app
If you are looking to open an FD, the Airtel Thanks app can come in and help you. You can now book funds as FD on the Airtel Thanks app, starting from ₹500 and going up to ₹1,90,000. Therefore, opening an FD and taking benefits of this incredible financial instrument has never been easier.
However, that is not all that the Airtel Thanks app can do. It is an incredible mobile recharge app, and you can use it to pay prepaid/postpaid bills, DTH connections, broadband and more. Utility bills, such as electricity, water bills, booking gas cylinders – all this is also possible via Airtel Thanks.
Furthermore, you can also use Airtel Thanks to recharge mobile numbers for others, and get attractive offers at the same time. Start using the Airtel Thanks app as your daily app, take part in the cashless economy and see the magic unfold. Download the app today!