5 Important Tips to Consider Before Investing in a High-Interest Fixed Deposit (FD)

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  • 1 Months ago

Written by - Shriram

Did you know that a high-interest Fixed Deposit (FD) is one of India's most rewarding and trending investment options right now?

We know you are here to double-check if booking a high-interest fixed deposit in India is a good choice. Rest assured, you are in the right place. This article will guide you through the factors to consider when choosing high-interest fixed deposit investment in India. Renowned Non-Banking Financial Companies (NBFCs) like Shriram have made high-interest fixed deposits safe and highly beneficial for investors in India. If you want to build a profitable investment portfolio, do not hesitate to book a fixed deposit with Shriram because it offers one of the highest rates of interest fixed deposit schemes in India.

Investors prefer investment to grow their wealth. Lately, several investment options provide high interest rates, but they are all market-dependent and prone to risks. However, with the evolution of NBFCs, the fixed deposit interest rates have drastically changed. For instance, Shriram – one of the leading NBFCs in India, offers a fixed deposit to investors at attractive interest rates of up to 8.75% per annum. Besides, Shriram assures safety on the fixed deposit investment and higher returns at maturity.

Why Choose a Fixed Deposit?

A fixed deposit is the most trusted and safest investment option worldwide. Investors choose a fixed deposit because it offers assured returns and growth at zero risk. Besides, an FD promises safety to your principal deposit amount and provides higher interest rates for your deposit to grow throughout the FD tenure.

COVID-19 disrupted the world’s economic stability. Since then, there has been a dip in the investment market as investors have understood how market-dependent investments like Mutual Funds (MFs), Systematic Investment Plans (SIPs), and Stocks work during a crisis. However, a fixed deposit is one of the few investment options that were not affected by the market fluctuations due to COVID-19. This is the most significant benefit you should consider before investing in a high-interest fixed deposit. Hence, an FD assures a maturity amount in a Fixed Deposit Receipt (FDR) while opening an account and delivers it at the end of FD tenure.

A fixed deposit also grants extra interest rates for senior citizens to help them earn big by utilising their retirement benefits. Shriram is popular among senior citizens because it offers an additional interest rate of up to 0.50% on top of standard fixed deposit interest rates.

High-Interest Fixed Deposit might sound like an investment option for the future, but it is here now and delivering promising results to the investors.

5 Important Tips to Consider Before Investing in High-Interest Fixed Deposit

As an Indian citizen, you might feel that your fixed deposit interest rates are lower. Banks and financial institutions from other countries offer fixed deposit interest rates of up to 2%. Is it a surprise? Hence, when you choose a high-interest fixed deposit in India, below are a few factors you can consider;

Safety Comparison

When making an FD investment, your number one priority must be safety. Especially when you choose a high-interest fixed deposit, you should be very cautious. Hence, do your research and compare the safety standards of a bank fixed deposit and corporate fixed deposit.

In recent years, NBFCs have improved their safety ratings to help traditional, and new-age investors invest confidently. Shriram was recently rated “IND AA+/Stable” by India Ratings & Research and “[ICRA]AA+ (Stable) “for safety.

Bank vs Corporate Fixed Deposit Schemes

There are many types of fixed deposits based on institutions. Bank and corporate fixed deposits are the two types of an FD utilised commonly by investors. When choosing a high-interest fixed deposit, you have to compare and consider the different features and FD interest rates offered by banks and NBFCs.

It is a well-known fact that NBFCs offer higher interest rates than banks. Also, as NBFCs like Shriram provide excellent customer service and one of the highest fixed deposit interest rates, you can book an FD without reconsideration.

Fixed Deposit Amount

Banks and NBFCs have a minimum and maximum deposit limit. The deposit amount determines the maturity amount you receive and you have the freedom to invest any amount of money according to your convenience. However, you must know that the higher the FD investment amount higher will be your maturity returns.

Shriram accepts FD with a minimum amount as low as Rs. 5000, and you can increase the amount to the multiples of Rs. 1000 to help investors start a habit of saving. In general, a fixed deposit account does not have a maximum limit. Hence, when you book a high interest fixed deposit Shriram, you can make reasonable gains with a small amount of money.

Flexibility in FD Tenure

Most financial institutions have a fixed tenure when you book a fixed deposit. Lately, banks and NBFCs have revised the rules and allowed investors to choose tenure according to their comfort and financial goals.
When you book an FD with Shriram, you can choose the tenure as per your requirement. Here is a table that showcases the term period when you book a Shriram FD.
 
Months 12 15 24 30 36 45 48 60
Online Yes Yes Yes Yes Yes Yes Yes Yes
Offline Yes
  •  
Yes - Yes
  •  
Yes Yes
 

Diversify Your FD Investment

“Don’t depend for your success on a single plan”. As this quote says, you should never depend on good returns with a single fixed deposit account. It would be best if you knew the art of diversifying your FD investment to earn better and high returns.

Shriram offers cumulative and non-cumulative fixed deposit schemes. You can diversify your funds, make a deposit in both cumulative and non-cumulative fixed deposits for different FD tenures and earn payout regularly and at maturity. Diversifying your FD will benefit you to multiply your investment quickly and safely.

Also Read: Everything you need to know about a Long-term Fixed Deposit

Invest with Shriram Fixed Deposit

The best investment choice for a high-interest fixed deposit is Shriram Fixed Deposit. It offers all the essential benefits that facilitate you to earn good returns and grow at zero risk. Also, as they provide one of the highest interest rates for an FD and higher safety, you can simply book an FD with Shriram without any reconsideration.

FAQs

What is the best way to invest money in an FD?

Diversifying your investment money into a few or at least two fixed deposit accounts is the best way to invest money in an FD. Shriram offers cumulative and non-cumulative fixed deposit accounts to help you earn at maturity and regular intervals.

Which is currently the highest fixed deposit interest rate in India?

Many financial institutions offer fixed deposits at reasonable interest rates. However, Shriram provides a lucrative interest rate of up to 8.75% per annum, including a special interest rate of 0.50% for senior citizens.

Which type of FD is best?

A cumulative fixed deposit from Shriram is the best investment choice for 5 years. If you are a senior citizen and want a regular payout, you can book a non-cumulative fixed deposit with Shriram.

Which interest rate is safest for an FD?

Any interest rate is safe and best for a fixed deposit if you choose the right NBFC like Shriram. Because Shriram offers flexibility to choose your investment tenure according to which your interest rate will be determined. Hence, when you select Shriram Fixed Deposit, you have an opportunity to invest a small amount and get reasonable returns at maturity.

Key Highlights

  • Investors prefer investment to grow their wealth.
  • Renowned Non-Banking Financial Companies (NBFCs) like Shriram have made high-interest fixed deposit that are safe and highly beneficial for investors in India.
  • High-Interest Fixed Deposit might sound like an investment option for the future, but it is here and delivering promising results to investors.
  • If you want to build a profitable investment portfolio, book a fixed deposit with Shriram because it offers one of India's highest rate of interest fixed deposit schemes.