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Is it a good idea to invest in fixed deposit?

CHAITHANYA VR (6 Points)

06 July 2017

I want to start saving so it is good resourse to invesing money in fixed deposit

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4 Replies

Aman Khanna (Finance Advisior) (196 Points)
Replied 06 July 2017

There are some reasons which prove that FD is a better investment option. Watch this online video that will explain about the all reasons why FD is popular in Investment scheme.

Safe Investment

Return on investment is fixed in comparison of other high-risk investments like stocks, mutual funds, and debt funds.

Flexible Interest Rate Payouts

Modern FD plans provide a flexible interest payment option.You can choose monthly, annually or at-maturity interest payment. Some NBFCs like Bajaj Finserv offer an additional interest rate on FD for senior citizens.

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 06 July 2017

Investment in Fixed Deposit with Banks is highly liquid and safe but the same is not so in case if you open Fixed Deposit with Companies where you have to look for credit rating int on Fd ranges from 6 to 7% .the other option would be to invest in liqud funds in a good asset managment companies like quantam or templeton where your interest would be higher than that of fixed deposit

If you prefer a longer locking period I would suggest you to Open a PPF account and start investing your monies in PPF

Sagar Devani (Corporate and International Taxation) (1174 Points)
Replied 06 July 2017

It depends on various factors like your age, income, liquidity needs.

If your are young and not in immediate need of funds than its not worth investing.

Considering Inflation, Time Value of Money, etc. FDs dont give you proper returns.

CA Neha Agrawal (CA) (830 Points)
Replied 07 July 2017

You have mentioned you are starting saving, so its a good option. Amount is always safe. After sometime when you have some amount saved in secured funds, you divert further funds to other savings like mutual funds. To start with do not put lumpsum amount in single FD, put small portions in separate FDs, this will help in case you need fund to withdraw for some purpose.