Fixed deposit is the most secured kind of investment option. It is the most preferred and safe choice, which lets you park your savings securely. It allows the depositor to invest an aggregate amount in the preferred bank or financial institution and choose a convenient tenure. The interest on the amount starts compounding annually until the tenure ends. Once the amount is fixed, it does not get affected by changes in the interest rate and thus, the estimated return on the deposited amount is guaranteed. On maturity, the depositor gets a lump sum amount along with the interest component, which results in a much higher amount. Besides, the FD interest rate is quite high, which makes it a more viable option for those who want to expand their savings.

Before investing in a fixed deposit account, you must be well aware of its features. Given below is a list of FD features.

Assured returns

A fixed deposit comes with assured returns. The returns are usually high and you can even calculate the estimated return. Most financial institutions provide an FD calculator which makes the task of calculating the returns easier.

Higher returns for senior citizens

As a senior citizen, investing in a fixed deposit is the most beneficial option. This is because the FD interest rate for senior citizens is higher than the standard interest rate. It is usually 0.25% to 0.50% more than the actual rate. This attractive feature helps senior citizens to park their savings and have a monthly income. 

Flexible tenor

The tenure for a fixed deposit is highly flexible and ranges from 1 week to 7 years. This allows the depositor to select a tenure as per his requirement. Moreover, the depositor can also expand the tenure of the account when the tenure ends for the same period or as he wishes. 

High liquidation

A fixed deposit comes with the facility of easy liquidation. This means you can withdraw your FD ahead of the maturity by paying a negligible penalty fee. 

Tax saving investment

Fixed deposits help in tax deductions. In a tax saving FD, a depositor can invest anywhere between Rs. 100 to Rs. 1.5 lakhs. A tax-saving fixed deposit usually comes with a 5 years lock-in period. Thus, premature withdrawal is not allowed in this kind of FD. But, in case of the death of the depositor, the nominee can opt for a premature withdrawal. Also, there is no option of loan against FD for this kind of account. 

Loan facility

Another attractive feature of FD is procuring a loan against the FD account. This means that depositors can avail of loans from their FD if there is an emergency. These loans are more feasible than a personal loan which comes with higher interest rates. You can avail of a loan of 90% on the amount of FD. For instance, if you have an FD of Rs. 5 lakhs, you can avail of a loan amount of Rs. 4.5 lakhs against the loan. 

Credit card facility

People investing in fixed deposits are eligible for credit card facilities too. But the availability is totally dependent on the NBFC or the bank where you have the account. The limit of the credit card usage is fixed based on your account, thereby ensuring its security. 

Partial or premature FD Withdrawal

A fixed deposit comes with the facility of premature withdrawal. The depositor can withdraw his FD amount before the term expires. This usually comes with a penalty fee. 

Affordable investment

Fixed deposit is the most affordable and feasible investment. The depositor can open an FD account with just Rs.100. However, the leading financial institutions start with Rs.1000. 

Benefits of Fixed deposit

Investing in a fixed deposit comes with several benefits, such as the ones given below. 

  • It is a risk-free investment. 
  • It is a highly stable investment. 
  • Assures guaranteed returns without any loss on the principal amount. 
  • Free of market fluctuations. 

There are many banking institutions in India that offer the fixed deposit scheme and one of them is PNB Housing Finance Fixed Deposit. It offers the highest standard of safety and timely payout of interest and principal. Not only that, the interest rates are high as well for various tenure and allows for premature withdrawal right after three months of the lock-in period. Thus, if you are thinking to invest in an FD to get maximum returns, you should definitely go for PNB Housing Finance Fixed Deposit. 



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