Investing in Fixed Deposits (FD) is considered one of the best investment options for people who are looking for good stable returns without exposing themselves to volatile market risk. FDs are offer better return than any saving accounts but this benefits of keeping your money in FD goes beyond the good return rate.FD investments come with many benefits that include insurance and healthcare, and in the case of FDs for at least 5 years, the investor is also entitled to exemption in income tax.
As per experts, FD investments are a smart choice especially during volatile times like this.Here are 5 benefits of FD that make it a good investment option beyond just the good return on money.
Overdraft Facility: Bank customers are eligible for overdraft facility against their FD. The facility can be used by customers to meet their sudden cash demands in case of any emergency.
Tax Exemption: Investment in FDs also come with tax exemption benefits. For investment made in FDs under tax saving schemes, customers are allowed to claim tax exemption under Section 80C of the Income Tax Act, 1961.
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Assured Return: FDs come with potentially no risk to your investment and the returns do not fluctuate unlike the other investment tools in the market. For beginners, investment in FDs can help to develop an investment habit as they can invest in bank FD with even smaller amounts for a short duration like 15 days to 3 months.
Insurance and Healthcare: To attract customers to invest in FDs, many banks are also offering free insurance policies and other health care benefits along with their investment schemes
Ease of Managing FD investment: With the arrival of the internet, managing your banking became easier for customers. Now, they can manage their money through a phone, or a laptop connected to the internet. Unlike earlier, opening an FD account and investing money does not require a lengthy formal process and bank customers can use net banking to make investments in GD within few minutes.
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Source: News18