Here are the benefits of opting for an FD investment

As an investor, your priorities could range from generating high returns in the short term to growing your wealth in the long term. An FD investment or a Fixed Deposit investment is often the first stepping stone in any Indian investor’s investment journey. Let us understand fixed deposit accounts better in this article by learning how they help investors, how they are structured, and the kind of returns they offer.

What kind of investment is offered by a fixed deposit account?
 

Fixed deposit accounts or FDs are investment instruments offered by scheduled banks, financial institutions, and NBFCs (Non-Banking Financial Companies) to their customers in order to help them grow their wealth in the short-to-medium term. Every fixed deposit account has an interest rate and a term associated with it. The interest rate is fixed and remains unchanged throughout the tenure of the fixed deposit account. A fixed deposit account, therefore, offers an investor an opportunity to grow their income over a short-to-medium term at a fixed, pre-determined rate. 

How to open a fixed deposit account?
 

In this section, we shall take an example of IDFC FIRST Bank’s fixed deposit accounts to understand how you can open a fixed deposit account online in India. Kindly bear in mind that these points are applicable to any savings or current account holder with IDFC FIRST Bank:

· Download the IDFC FIRST Bank mobile banking app
 

Our app does more than help you invest your money. Download and start using it to experience the benefits of the most convenient mobile banking app in the market!

· Log in to the app

Once you have logged in, click on ‘Open FD’. Even if you are logging in for the first time, it will take the app a few minutes to sync your information. 

· Enter an investment amount

IDFC FIRST Bank allows its customers to open a fixed deposit account with a minimum of ₹10,000 if they are opening one at a bank branch. The minimum amount for an online FD account opening, however, is ₹1000.

· Click on “best plan” to get the most suitable plan

 It is now time to select a plan for your fixed deposit investment. By opting for the “best plan” option, the site will suggest an FD plan to you, and you could proceed with it if you like it.

· Select “all plans” to choose a plan of your liking 
 

If you wish to select a plan according to your own calculation or inkling, you are always free to opt for the “all plans” option. This option presents you with all of IDFC FIRST Bank’s FD account plans. You could choose any one of these.

· Give the required approvals 
 

By clicking on “OK”, your fixed deposit account will be created. You shall also receive an email and SMS notification from IDFC FIRST Bank informing you about the same.

What are the returns like?
 

In one word - “guaranteed”. Now, that counts for a lot. If you are a seasoned investor, you probably could do without this basic lesson in fixed deposit accounts and their functioning; but for the first-time investors reading this article, a fixed deposit investment is one of the most reliable instruments of investment that comes with lesser risk as compared to other investment instruments. When an FD account matures on the day its tenure is completed, the fixed interest will be added to the investment amount and paid to the investor.

Features and benefits of opening a fixed deposit account  
 

Finally, let us look at the features and benefits of opening an FD account in India:

1. Solid returns
 

Just as we discussed towards the end of the previous section, a fixed deposit investment offers reliable, guaranteed returns to the investor over a fixed investment period.

2. Flexibility

You can open an FD for 7 days or keep it going for 10 years with IDFC FIRST Bank.

3. No limits to the number of accounts you can open
 

You can open as many fixed deposit accounts as you like.

4. Tax benefits

Fixed deposit investments also offer attractive tax benefits such as a tax exemption under Section 80C of the Income Tax Act for a sum of up to ₹50,000.

If you are a first-time investor reading this article, we are glad to have reached you! Start your investment journey on a high by opting for IDFC FIRST Bank’s fixed deposit accounts. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.