Top 5 Reasons Why a Fixed Deposit is Better than any Other Investment
- 1 Months ago
Written by - Shriram
Do you know why champion cricketer MS Dhoni is called Captain Cool?
Because MS Dhoni stays calm and stable under pressure and leads the team to victory. In addition, you can trust Dhoni when he is on the field to deliver positive results. He did not do this once or twice; he was doing this consistently and winning matches for India.
Similarly, when looking for a stable investment option, a Fixed Deposit (FD) is the most reliable option in today’s investment market. As the interest rates do not fluctuate based on market and economic conditions, an FD is better than mutual funds, stocks and other investments. Shriram Fixed Deposit offers one of India's highest FD interest rates of up to 8.75% and flexible tenures. It assures returns with a high safety rating of “IND AA+/Stable” by India Ratings & Research and “[ICRA]AA+ (Stable)” by ICRA.
Since COVID-19, the economy worldwide has been inconsistent and shows constant fluctuations, which is not favourable for market-dependent investment options like stocks and Mutual Funds (MFs). However, a fixed deposit is a stable investment that delivers good returns to investors, which makes a fixed deposit better than any other investment option. Besides, a fixed deposit promises fixed returns while opening an account, stays stable throughout the tenure, even during market fluctuations and delivers higher & fixed returns at maturity.
How Does a Fixed Deposit Work?Saving a part of your income is essential to accumulate and utilise during financial emergencies and plan for a bright financial future. Normally, investors choose a safe investment option that helps them multiply their money.
Likewise, a fixed deposit is a good investment option that helps you to save a considerable amount for a fixed tenure at reasonable interest rates and earn assured returns at maturity. In an FD, you can invest your funds with banks and NBFCs (Non-Banking Financial Companies) for a flexible tenure between 7 days – 10 years. Investors cannot withdraw money from their FD during the tenure, but certain banks and NBFCs allow premature withdrawal with a small penalty amount in financial emergencies. At maturity, banks and NBFCs will credit the maturity amount (principal + accrued interest amount) to the investor's bank account.
With NBFCs like Shriram, you can multiply your savings quickly as they offer higher interest rates than most banks and NBFCs. Although banks have aggressively reduced the FD interest rates, Shriram has increased the FD interest rates to make an FD better than other investments and help investors build a safe and profitable investment portfolio. If you want to know the exact interest rate and the total amount you would receive at maturity for a Shriram FD, use the Shriram FD calculator.
Top 5 Reasons that a Fixed Deposit is Better than Any Other InvestmentA fixed deposit is a good investment option compared to other market-based investment options. Below are five top reasons you must know why a fixed deposit is better than any other investment.
Unlike market-dependent investment options like a mutual fund, SIP and stock, a fixed deposit is safe. An FD is not dependent on market growth; hence the interest rates do not fluctuate and remain stable throughout the fixed deposit tenure.
Another reason why an FD is better than any other investment is the safety it offers to the principal amount. Banks and NBFCs promise to return the principal amount and accrued interest at maturity in a fixed deposit. Fixed deposit accounts from reputed NBFCs like Shriram are rated “IND AA+/Stable” by India Ratings & Research and “[ICRA]AA+ (Stable) by ICRA”, making them credible and safe.
Booking a fixed deposit will yield you assured returns. As NBFCs like Shriram are increasing the FD interest rates to help investors diversify their investments, you are guaranteed to receive higher returns. This benefit helps you to set financial goals as you know the amount of money you will receive at maturity.
Loan Against an FD
A loan against an FD is the best feature that makes a fixed deposit better than any other investment. As an investor, you must know that you can avail of a loan of up to 90% against your fixed deposit. As loans are a lending tool that helps you during financial emergencies, an FD can be utilised to obtain loans according to your convenience.
To open a fixed deposit account, you can choose your preferred fixed deposit scheme between - cumulative and non-cumulative fixed deposit schemes. You will be able to withdraw or receive the maturity amount at the end of your investment tenure in a cumulative fixed deposit. In a non-cumulative fixed deposit, you can receive monthly, quarterly, half-yearly and yearly payouts.
Another reason an FD is better than any other investment is that you can choose the tenure and FD amount according to your convenience and financial goals.
No other investment option is better than a fixed deposit in terms of liquidation, as you can withdraw/break your FD anytime in case of emergencies. However, there is a penalty for premature withdrawal which would differ based on different banks and NBFCs. The premature withdrawal process is simple in a fixed deposit. As premature withdrawal incurs some costs, you can always take a loan against your FD.
Book Shriram Fixed Deposit – an FD that is Better than any Other InvestmentNow that you know a fixed deposit is better than any other investment book an FD with Shriram to multiply your savings safely. While other investment options offer high-interest rates at high-risk, Shriram provides an attractive and reasonable interest rate of up to 8.75% per annum at zero risk. Besides, as Shriram is rated safe by India Ratings and Research and ICRA, your FD investment is safe and guaranteed higher and assured returns. Don’t wait! Book an FD with Shriram now.
FAQsWhich investment is better than FD?
There are many market-dependant investment options. However, Shriram Fixed Deposit offers almost all the benefits of other investment options like Mutual Funds, SIPs and Stocks. Here are a few benefits of FD;
- Loan Against FD
- Principal Safety
- Assured Growth
- Higher Returns
- Renewal at Extra Interest Rate
A fixed deposit is the best investment choice considering the current market and economic conditions, as you get reasonable interest rates and assured returns. Also, when you book an FD with NBFCs like Shriram, you can match the interest rates of a few market-dependant investment options and earn considerable returns.
Which investment is best and safe?
Shriram Fixed Deposit is one of India's best and safest investment options. As Shriram offers one of the highest interest rates of up to 8.75% per annum and has been rated “IND AA+/Stable” by India Ratings & Research and “[ICRA]AA+ (Stable)” by ICRA, an FD with Shriram is the best and safe investment option.
- A Fixed Deposit (FD) is the most stable investment option in today’s investment market.
- As the interest rates do not fluctuate based on market and economic conditions, an FD is better than mutual funds, stocks and other investments.
- While other investment options offer the highest interest rate at high-risk, Shriram offers attractive and reasonable interest rates at zero risk.
- Shriram Fixed Deposit offers one of India's highest FD interest rates of up to 8.75%, flexible tenures, and it assures returns with a high safety rating of “IND AA+/Stable” by India Ratings & Research and “[ICRA]AA+ (Stable)” by ICRA.