Check out Top 6 Benefits of Adding Fixed Deposits to Your Portfolio

  • Deposit
  • 1 Months ago

Written by - Shriram

Did you know a Fixed Deposit (FD) can benefit and add value to your investment portfolio? Yes, an FD is one of the safest investment options that offer higher interest rates and fixed returns to help you get a regular income. It also allows you to avail of loans against an FD in times of financial emergencies. With the evolution of Non-Banking Financial Companies (NBFCs) like Shriram, you can leverage all the benefits of a fixed deposit and build a profitable portfolio on your own.

Building an investment portfolio is the most crucial part of financial planning. Investors can diversify their investments to build a profitable and risk-free portfolio. A Fixed Deposit (FD) is an investment that offers several benefits and helps you build a strong investment portfolio. The benefits of fixed deposit accounts help investors decide on an FD amidst many market-dependent investment options.

What is a Fixed Deposit?

A fixed deposit is one of the oldest investment options banks and NBFCs offer investors to grow their savings safely. In a fixed deposit, investors deposit a considerable amount of money for a fixed tenure. At maturity, they receive fixed returns at the interest predetermined by the respective banks or NBFCs.
Although an FD offers comparatively lower interest rates than market dependant investment options like Mutual Funds (MFs), SIPs (Systematic Investment Plans) and Stocks, investors prefer a fixed deposit for its safety. Besides, you must know that when you book an FD with Shriram, you get fixed income, guaranteed assured returns, security of principal deposit amount and interest rates of up to 8.75% per annum.

Top 6 Benefits of a Fixed Deposit

A fixed deposit benefits investors in many ways and allows them to multiply their wealth seamlessly. Below are the top six benefits you must know before you book an FD.
 
1.Flexibility – The most significant benefit of a fixed deposit account is its flexibility in terms of tenure, investment amount and withdrawals. Investors can take advantage of this FD benefit to tackle their financial difficulties by withdrawing money from their FD according to their needs and convenience.

In addition, you can choose between a cumulative and a non-cumulative fixed deposit to benefit from payout frequency. In a cumulative fixed deposit, you get a fixed return at the end of maturity. Whereas, in a non-cumulative fixed deposit, you can get a regular income at monthly, quarterly, half-yearly and yearly intervals.
 
2. Low-Risk – A fixed deposit is an investment that carries minimal to zero risk. This is one of the best benefits of a fixed deposit. Thereby, risk-averse investors and beginners choose an FD to receive guaranteed returns without any risk involvement.
DICGC (Deposit Insurance and Credit Guarantee Corporation) has increased the insurance on an FD to Rs. 5,00,000 and made a fixed deposit even safer for investors.
 
3.Guaranteed Returns – Unlike other market-dependant investments, a fixed deposit benefits investors by offering guaranteed returns as determined while opening the fixed deposit account.

When you open an FD account, you will be informed about the maturity amount you will receive at the end of your tenure. Besides, you will receive guaranteed and assured returns at a fixed interest rate irrespective of the market conditions and fluctuating economy.
 
4.Easy Loans – Benefits of a loan against an FD have helped several investors during financial crises. Recently during the COVID-19 outbreak, loan against FD was a critical benefit that helped investors stay afloat despite the economic crisis.

Whenever you need funds, you can get a loan against your FD for up to 90% of the accrued FD amount. However, the percentage varies from bank to bank.
 
5.Tax Benefits – You get a tax exemption of up to Rs. 10,000 from your fixed deposit interest when you book a fixed deposit. This FD benefit allows investors to safeguard their hard-earned money from going away in the form of taxes. However, you can book a tax-saver fixed deposit if you want to save more tax.
 
6.Compounding Interest – Compounding interest calculation is one of the most excellent benefits of a fixed deposit because you can earn interest on your accumulated interest. Shriram offers compounding interest to investors to help them multiply their FD savings and build a profitable investment portfolio.

Benefits of Adding Shriram Fixed Deposit to Your Portfolio

Shriram Fixed Deposit is a reputed and safe investment scheme trusted by millions of Indians since 1974. Shriram offers an attractive interest rate of up to 8.75%, including a special interest rate of 0.50% for senior citizens, which is also one of the highest interest rates in India. As Shriram Fixed Deposit is safe and guarantees higher returns, you can achieve a balance in your portfolio.
Shriram offers multiple benefits to investors who want to make safe investment decisions. Below are a few exclusive features you must know before you book an FD with Shriram.
  • Higher Returns – Shriram currently offers a higher interest rate than most of the banks and NBFCs in the country. Hence you are assured of receiving higher and fixed returns that do not fluctuate based on market conditions.
  • Convenient Investment Tenure and Amount – The Shriram Fixed Deposit accepts any deposit amount as low as Rs. 5000. You can also calculate the interest amount using a Shriram FD calculator and choose your fixed deposit tenure based on your convenience.
  • Special Interest Rates for Senior Citizens – Shriram helps senior citizens to multiply their wealth and earn big using their retirement benefits by offering a special interest rate of 0.50%.
Add Shriram to Your Portfolio Now!
Shriram Fixed Deposit is the best investment choice you can ever make as it offers multiple FD benefits. You can surely add it to your portfolio without any second thoughts. So book an FD with Shriram and build a profitable portfolio now.

FAQs

What are the benefits of a fixed deposit?

A fixed deposit offers several benefits that allow investors to save and grow safely financially. It benefits investors with higher and fixed returns, loans against FD, and tax benefits. NBFCs like Shriram help investors with the higher interest rate to help them build a profitable investment portfolio.

What are the advantages of fixed deposits?

  • A fixed deposit is flexible and helps you choose your FD tenure and amount at your convenience.
  • Unlike other investments, an FD is safe, and the interest rates do not fluctuate based on market conditions.
  • With the current economic situation, Shriram Fixed Deposit offers many advantages that boost investors to make an investment and quickly achieve long-term financial goals.

What are the benefits of fixed deposit with Shriram?

The benefits Shriram Fixed Deposit offers are matchless compared to competitors' fixed deposit schemes for two reasons. One is the fixed interest rate, and the other is safety. Shriram is one of the most reputed NBFCs that is rated “IND AA+/Stable by India Ratings and Research and [ICRA] AA+(Stable) by ICRA” and offers one of the highest interest rates of 8.75% per annum.

Key Highlights

  • Did you know a Fixed Deposit (FD) can benefit and add value to your investment portfolio?
  • An FD is one of the safest investment options that offer higher interest rates and fixed returns to help you get a regular income.
  • A fixed deposit allows you to avail of loans against an FD during financial emergencies.
  • With NBFCs like Shriram, you can leverage all the benefits of a fixed deposit and build a profitable portfolio on your own.