Why Investors Love Bank Fixed Deposits in India?

While there are numerous investment options in India, investors generally love bank fixed deposits. In India there are numerous banks that are foreign, public sector, private and scheduled banks that offer FD schemes. These FD schemes carry high interest rate and it also would vary from one bank as well as other based on their status. Basically we glance to get the best returns, we have to be little careful while choosing the FD schemes. There are numerous primary explanations why investors favor bank fixed deposits in comparison to stocks, mutual fund schemes, bond, corporate fixed deposits, guaranteed NCD’s etc., Inside the following sentences, I’d give a few in the significant reasons why investors love purchasing such FD schemes.

3 good reasons why investors love bank fixed deposits in India

1) Fixed regular earnings: Bank FD’s provide regular fixed returns across the deposits. Banks in India are providing fixed deposit rates between 7% to 10% every year. You are able to invest money and may expect good monthly, quarterly or annual earnings. This investment choice is helpful for investors who search for regular fixed earnings. This method can also be broadly utilized by outdated individuals who want to invest their retirement corpus in safe and get regular earnings.

How to Invest in Bitcoin Safely for Beginners 2022 - The Economic Times

2) Safe investment option: Bank FD’s carry safe as these are controlled by Reserve Bank asia. Other investment options like stocks, mutual funds, corporate FD’s and bonds carry high-risk. Since the returns are high, there’s however risk within your capital. However, such FD’s carry safe and provide good return. Presently there’s no investment option where it offers regular earnings like bank fixed deposit which carries safe. Hence they are becoming favorites for almost all the investors.

3) Easy liquidity: When choosing stocks, mutual funds or corporate FD’s, they can’t be liquidated easily. Even if you wish to redeem them or sell them, sometimes, you might like to incur loss or compromise on returns. Bank FDs however may be withdrawn with eventually notice and money may be within your money. Some bank charge pre-closure penalty charges which ranges between .5% to twoPercent less rates compared to they should pay. That way, bank fixed deposit schemes are liquid anyway