Fixed deposit (FD) is a popular investment option that offers many benefits to customers. Here are some benefits of fixed deposit for customers:
Guaranteed Returns: One of the key benefits of fixed deposit is that it offers guaranteed returns. The rate of interest offered on FDs remains fixed for the entire tenure of the deposit, so customers can be sure of the returns they will earn on their investment
Low Risk: Fixed deposits are a low-risk investment option as they are not affected by market fluctuations or changes in interest rates. This makes them a safer option for customers who are risk-averse or looking for a secure investment.
Flexible Tenure: Fixed deposit tenure can range from a few days to several years, providing customers with flexibility in choosing the duration of their investment. This enables them to match their investment goals with their financial needs.
High Liquidity: Fixed deposits offer high liquidity as customers can withdraw their funds at any time, subject to some conditions. They can also take a loan against their FDs, which can be useful in case of emergencies.
Tax Benefits: Customers can also avail tax benefits on their FD investments under Section 80C of the Income Tax Act, 1961. This makes fixed deposits an attractive investment option for those looking to save on taxes.
Regular Income: Fixed deposits can be used as a source of regular income, especially for senior citizens, who can opt for monthly, quarterly, or annual interest payouts on their FDs.
Overall, fixed deposits are a low-risk, high-liquidity investment option that offer guaranteed returns and tax benefits, making them a popular choice for customers looking for a safe and secure investment option.