Every investment option in the current market offers reasonable interest rates. But, if you are searching for an investment option with attractive interest rates, you are in the right place. A fixed deposit is the safest way to kick start your investment journey. They are simple and help individuals save money at low risk. It holds your investment for a fixed time and releases it at the end of tenure with maturity and accrued interest.
The interest rates in an FD (fixed deposit) are higher than in a savings account. Besides, it helps you gain returns at a steady pace. As they do not have any market involvement, the interest rates do not fluctuate, and the risk factor is very low. Moreover, as the risk factor is very low, an FD is the most popular investment option for first-time investors.
Fixed Deposit
A fixed deposit is one of India's most traditional investment options offered by banks, Non-Banking Financial Companies (NBFCs), and Housing Finance Companies (HFCs).
Under an FD, a depositor can select a tenure and deposit considerable money for a fixed time. In turn, the banks or NBFCs offer a fixed interest rate for the investment. Depositors can withdraw their investment along with accrued interest once the tenure ends. Besides, the depositor has an option to reinvest their money for another term or close the FD according to their preference.
Importance of Interest Rates
Interest rates are the most critical aspects of an economy. They have a more significant impact on the return on investment and cost of borrowing. And they are a substantial component of the total return of many investments.
Fixed deposit interest rates determine the return on investment made by depositors. Higher the interest rates, the maturity amount of deposits will be higher. In addition to tenure, interest rates also play a vital role in ROI (Return on Investment), and they do not change based on market fluctuation or economic crises.
Advantages of Investing in an FD
The investment options available in the market are many. However, an FD tops the chart despite the competition, offering high returns with minimum risks.
Check out the most rewarding advantages of an FD.
- Fixed Returns
Investing in an FD gives you guaranteed returns throughout the tenure. Even if the economy crashes and the market fluctuates, your FD remains the same until it matures. For this reason, a fixed deposit is the safest investment for all investors. If you also want to know about USA News and Entertainment then this is the place for you.
- Effortless Investment
One of the most effortless and hassle-free investment options is a fixed deposit. Nowadays, you can open an FD in just a few clicks. Besides, you can open an FD and stay worry-free until it matures. Also, you can set maturity instructions to credit your account with the maturity amount or renew the FD automatically.
- Regular Income
FD gives you an option to earn regularly by making you choose monthly or quarterly interest pay-outs. However, these pay-outs will not be added to the maturity amount at the end of tenure.
- Power of Compounding
Choosing an FD as a reinvestment option will facilitate you to benefit from compound interest calculation. This calculation is simple yet beneficial for depositors to earn an extra amount on their maturity amount.
- Flexible Solutions
Many depositors think the fixed deposit is rigid. The truth is that FD offers flexibility during investment. Here is how you can leverage the flexibility;
· You can get a loan against your FD (90% of the investment amount).
· Choose flexible tenures based on your needs.
Features of an FD Scheme with Shriram
The fixed deposit scheme at Shriram acts as a valuable investment for individuals. Here are a few features that differentiate Shriram from its competitors.
Higher Returns
Shriram is the only NBFC in the country that offers the highest interest rates, i.e. 8.40% inclusive of 0.50% for senior citizens. Besides, Shriram has been accredited with the highest credit rating with stable outlook. It is easy for you to grow financially and secure your future with a lucrative interest rate.
Flexible Tenure
Shriram FD scheme offers flexible tenure starting from 12 months to 60 months. You can fix the investment tenure based on your financial and personal needs. However, it is advisable to always go for a longer term to accumulate the highest interest rate.
Flexible Pay-outs
Shriram is well-known for offering both cumulative and non-cumulative term deposits. If you choose a non-cumulative deposit, you will yield interest monthly, quarterly, half-yearly or annually. However, if you decide on cumulative deposits, your interest will be compounded monthly in addition to your principal amount.
Shriram – Attractive Interest Rates
Shriram is India’s largest and most trusted NBFC. It offers the highest security with attractive interest rates. Besides, Shriram is awarded the highest safety rating of “[ICRA]AA+ (Stable)” by ICRA.
Investment Tenure for an FD with Shriram
Shriram offers different investment tenure based on your financial goals and personal needs. However, there is a slight difference in the tenure provided in the offline and online schemes. Below is an image that will help you choose the term for your investment.
Invest Now with Shriram!
Looking at the above paragraphs, you would know that Shriram offers the most flexible FD at the highest interest rate. Besides, it has revised the FD interest rates from 7.90 to 8.40% (including 0.50% for senior citizens). So now is the right time to invest your FD with Shriram and secure your future.
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