Investing for your future means swimming through the sea of multiple options and coming out only with the best, especially if you are a beginner.
Yes, you may be confused by the sheer number of investment options available such as fixed deposits, mutual funds, stocks, equities, bonds and more.
However, since the market conditions regulate the returns of most of these options, it becomes a must to go for an option that gives you nothing but good ROI.
In the same context, fixed deposit is one of the safest investment options when it comes to the Returns on Investment or the ROI. Why? Their ROI is sure-shot and gives you a definite benefit because they are not affected by fluctuating market conditions.
Let’s provide you some reasons that will justify that fixed deposits are the ideal investment option for beginners.
- Fabulous starting point
A FD (Fixed Deposit) scheme is a great starting point for new investors. This investment mode has existed for long, and people have reaped amazing dividends. The ROI is assured, and you don’t face the threat of losing your money.
- Best for idle capital
Have some spare cash in your savings account? It’s best to take out from there and invest in an FD scheme and earn more interest than a savings account. Yes, the interest gains on an FD account are higher, and that’s what makes it a profitable option.
- Comes with flexible tenor
You are free to invest your money in a fixed deposit plan for tenor as per your wish. Leading non-banking finance companies (NBFCs) offer a tenor ranging between 1 year and 5 years. The longer your tenor, the higher your investment profit.
- Sure-shot ROI
As discussed earlier that the ROI on the FD account is sure-shot or guaranteed, your invested money will surely bring you interest incomes. Hence, compared to other investment plans, you can invest in an FD scheme, set the tenor, sit back relax and see your investment grow over a period.
- Auto-renewal facility
The fixed deposit accounts also come with the facility of auto-renewals. It means that once you opt for auto-renewal of your account, you don’t have to do it manually. It will be done automatically without your external efforts. It means that your money won’t stay idle and keep earning interests. You should contact your lender for the facility.
- You can use FDs as collateral
Did you know that you can avail a loan against your fixed deposit amount? Yes, lenders consider the invested money in your FD account as collateral and provide you a loan against it. Like this, you can skip closing your FD account prematurely in the event of an emergency need and do away with your interest profits.
The Bottom Line
Now that you are well aware of the reasons that make FD as an ideal investment choice for beginners, you can go ahead and apply it online. All the best!