How Fixed Deposits Help To Keep The Indian Economy Stable During Volatility
Fixed deposits have always been a reliable source of investment and savings. Generations of people chose to put their trust and money in fixed deposit accounts because it promises a definite interest and security. However, that is not all a fixed deposit savings is good for. In times of economic crisis in India, fixed deposits restore stability in the economy. It ensures a fixed return, interest rate and security to every investor, even when the economy suffers.
Fixed deposits are investment tools
If you are looking for places to invest, you must consider opening a fixed deposit account. Every investor has their own sets of priorities. However, they all prioritise one thing above all else, that is to protect their investment against the fluctuating market trends. Fixed deposit accounts give you this assurance your interest rate does not bear the effect of a volatile economy.
As an investor, it is always wise to have a certain portion of your money in a fixed deposit account.
Fixed deposits are flexible
If you are an amateur at investment and do not know where to start with your investment planning, fixed deposit accounts should be a good place. Not everyone is well versed in the procedures and strategies of investment. Sometimes, people do not have enough liquid assets to put in an investment. This is where fixed deposit savings accounts come in with a wide range of flexibilities. You can invest as little as you want in your fixed deposit account. The tenure they offer is also largely flexible. You can have a short term or a long term savings plan, from Seven days to 10 years.
You can also exercise a great deal of flexibility in terms of the amount you decide to put into a fixed deposit savings account. There is no limited amount. When it comes to investing, fixed deposits provide you with a sense of absolute certainty and security in a fluctuating economy. The wide range of flexibilities makes it an ideal investment option for amateurs.
Fixed deposits give you a number of benefits
It is true that you can enjoy a number of benefits from your fixed deposit savings account. The FD interest rate is 5 to 6% per anum and this interest rate is guaranteed to you no matter how much the economy suffers.
Moreover, in case of an emergency, you can have access to the principal amount that you put in your fixed deposit account. Therefore, you do not have to worry about inaccessibility to your funds in times of need. Banks also offer an overdraft of 90% of your principal amount, which lets you have the money you need without interrupting your savings plan.
No other investment options offer you this much security and accessibility to your funds in times of need as these fixed deposit accounts do.
The fixed deposit accounts are also well suited to senior citizens. Banks usually offer extra benefits to them by adding special interest on the general rates of the savings account.
What we witnessed last year
As an investor, the safest way to handle your money is by following the recent trends in your country’s economy. From the past decade, India has witnessed that savings accounts are the safest and most secured bet when it comes to protecting investors’ money. Generations of Indians have benefitted from the savings account and have protected their money from the volatile state of our economy. Reports show that fixed deposit accounts have proven to be a more secure option than other investment options like mutual funds and equity trading. The interest rates of fixed deposit savings accounts do not bear the brunt of a falling economy as much as other investment options do. Therefore, learning from the last few years, one would do well to trust fixed deposit savings accounts more than any other investing options.
Fixed deposits are your best option for investment because of its reliable interest rates. It also provides a wide variety of benefits and their policies are usually well suited to the investors. It keeps your money safe and secure and continues to make the economy strong in times of crisis.