Want to invest, but have an aversion to risk? Would you love to save money, but can’t seem to motivate yourself to do so? If so, an offer like Open FD Online might be right for you. In this instance “FD” stands for “fixed deposit”. A fixed deposit account is both an investment and a savings account, where you receive a certain amount of interest once the fixed time period is up. Here are five advantages to opening one today.
As stated, FD Interest Rates are a big draw for those looking to save while passively earning a little extra. But the biggest attraction is how trustworthy fixed deposits are. No more eyeing the news ticker to ensure your investment hasn’t gone down the drain; the money you’re investing isn’t subject to market fluctuations.
- It trains you to save.
The interest rates you get from regular savings accounts aren’t always enough to keep you from spending. The favorable rates offered by FD are a true incentive to save. But in order to reap that benefit, you have to deposit without withdrawing. For many who struggle with managing money, fixed deposits give them the extra push they need to save responsibly.
- It’s still there in an emergency.
Of course, the goal is to save, and come out with more than you came in with. However, we can never say for sure where life is going to take us. When the unexpected happens, you are allowed to take out a loan against what you’ve deposited. While the penalty may not be ideal, the very fact that you proactively saved money for such an emergency is a huge relief.
- It’s flexible.
Despite carrying the word “fixed”, you do have choices when applying for a fixed deposit account. If the idea of putting money into a bank for 10 years without making withdrawals seems like a stretch to you, choose a shorter term. Some banks will allow you to make fixed deposits for as little as seven days, while other terms last for a whole decade.
- You can compartmentalize savings.
Let’s say you have a fixed deposit account, and an emergency arises you have to borrow against. You might feel disappointed at the prospect of this, but you’ll feel less so if you have two accounts: one for just such an emergency, and a solid one you won’t need to touch in an emergency.
The same goes if you have various goals for the future. Let’s say you want to save for a new car to be purchased in three years, and also want to pay for your child’s education in seven years. Two fixed deposit accounts can help you save for both events without letting these funds mingle.
Do you have big plans for the future? Then don’t play fast and loose with your cash. Instead, look into a banking solution that fosters fiscal conservatism while still offering you a return on your investment. Fixed deposit accounts fit the bill perfectly, as you will be paid a great rate for saving your own money – no risk required.