Ditch the hassle: Invest in fixed deposits without a savings account

Fixed deposits (FDs) are a popular investment choice for individuals looking for secure investment options for saving and budgeting. However, often, the question is, which bank is best for fixed deposits in India? Should you open an FD in the same bank as your savings account or consider other better bank options to park your funds?

Traditionally, banks require customers to have a savings account to open an FD. Thanks to evolving banking options, you can now open a fixed deposit even without a savings account. One such innovative solution is the Digital Fixed Deposit from IDFC FIRST Bank.

Best secure investment option in India

Bank FDs are considered one of the best investment options for a variety of reasons. Here's a detailed look at why bank FDs are a popular and wise choice for many investors -

1. Safety and security with capital protection

FDs offer guaranteed returns, ensuring the principal amount is safe. Unlike stocks and mutual funds, market fluctuations do not affect returns. This makes bank FD the best-secured investment option in India.

The interest rate on FDs is fixed at the time of investment and does not change, providing predictable returns, which also helps with budgeting. If you opt for FDs without taking the interest credit, you earn interest on your interest due to compounding, and your returns grow rapidly.

2. Flexibility and liquidity

Bank FDs come with flexible tenure options ranging from a few days to several years, allowing investors to choose a term that aligns with their financial goals.

Usually, bank FDs come with a premature withdrawal facility. These FDs offer the option to withdraw funds before maturity, providing liquidity in times of need.

3. Liquidity

With banks offering premature withdrawal facilities for FDs, they can be easily liquidated, offering quick access to funds in case of emergencies.

4. Higher interest rates compared to savings accounts

Bank FDs typically offer higher interest rates compared to regular savings accounts, making them a more lucrative option for parking funds for the medium to long term.

5. Encourages savings discipline

The fixed tenure of FDs helps inculcate a savings habit by locking in funds for a specific period, discouraging impulsive withdrawals, and thus fostering budgeting.

6. Special schemes and benefits

Many bank's FDs offer higher interest rates for senior citizens, providing them with an attractive investment option for steady income.

Banks frequently offer special FD schemes with attractive rates or features, catering to different investors' specific needs and goals.

7. Online convenience

With the advent of Digital FDs, like those offered by IDFC FIRST Bank, opening and managing FDs has become incredibly convenient. They can be opened entirely online without needing to visit a branch.

Myths and realities surrounding opening an FD without a savings account

Despite being a popular and secure investment avenue there are common myths surrounding FD. Let's address them -

1. You must have a savings account to open an FD

Reality - While this was true in the past, some banks, like IDFC FIRST Bank, now allow customers to open a Digital Fixed Deposit without needing a savings account.

2. It's complicated to open a Digital FD

Reality - Opening a Digital FD is straightforward and user-friendly. IDFC FIRST Bank has streamlined the process, making it as simple as filling out an online form.

3. Digital FDs are less secure

Reality - Security is a top priority for banks offering Digital FDs. IDFC FIRST Bank, for example, uses advanced security measures to ensure your investment is safe and protected.

Thus, fixed deposits opened without a savings bank account are equally safe, secure, and accessible.

Features and benefits of IDFC FIRST Bank Digital FD

Here are some noteworthy features offered by IDFC FIRST Bank for both types of clients: those wanting to open FDs with or without savings accounts -

1. No requirement for a savings account -

Digital FD does not require you to open or maintain a savings account, making it an accessible option for many investors.

2. High interest rates -

IDFC FIRST Bank offers competitive interest rates on their Digital FDs, ensuring you get the most out of your investment.

3. Convenient online process -

From opening the FD to managing it, the entire process is digital. You can open your FD from anywhere, at any time, without visiting a bank branch.

4. Flexible tenure options -

IDFC FIRST Bank provides flexible tenure options for their Digital FDs, allowing you to choose a term that suits your financial goals.

5. Auto-renewal and easy withdrawal

You can easily opt for auto-renewal of your FD, and if you need to withdraw your funds, the process is straightforward and hassle-free.

6. Secure investment

Investing in IDFC FIRST Bank Digital FD is secure, with advanced security measures in place to protect your funds.

Thus, it is safe and wise to invest in IDFC FIRST Bank fixed deposit without a savings account.

Secure your investments today!

Investing in a Digital Fixed Deposit with IDFC FIRST Bank is a smart choice for those looking for the best secure investment options in India. Lock high-interest rates, a seamless online process, and the flexibility to suit your needs with IDFC FIRST Bank Digital Fixed Deposit today!