Fixed Deposit (FD) of banks is a reliable investment option. You get the facility of investing in FD for a period of 7 days to 10 years. Along with relying on deposits in banks, you get a certain interest on it on time. Whatever be the market conditions at that time, you will get fixed interest on the deposit. Not only this is the specialty of FD, but there are many such benefits, which we should know. Let us know about 5 such benefits.
Can withdraw money in emergency
After doing FD, you have the chance that you can withdraw money even before maturity. However, you have to pay some charges for pre-mature withdrawal. It varies in different banks. Usually it can be up to one percent. Due to this feature of FD, it is also called liquid investment. If suddenly there is an emergency then you can withdraw money from FD immediately.
loan will also be available
Another feature of FD is that you can take a loan against it. If you suddenly need money, you can take a loan against it without breaking the FD. Usually, up to 90 percent of the amount of FD is easily available in the form of loan. Generally, the interest on the loan against FD is one percent more than the FD.
get fixed interest
Changes in interest rates on FDs are not affected. Once you have invested in the interest rate FD, you will get guaranteed. During this, even if the interest rate is low, the fixed interest will be available. If the bank increases its interest rate during this period, then the investor does not get the benefit. At the same time, even if you reduce it, then the investor will suffer some loss.
Multiple FD options
There are many investment options available in FD. In this, you can get FD according to your amount and time. Generally, FDs can be made for a period ranging from 7 days to 10 years. SBI offers a minimum FD of up to Rs 1000. At the same time, there is no limit on the maximum amount of FD in SBI.
Risk free on FD
FD is considered to be the most risk free investment option in the country. Banks are monitored by RBI. FD is a safer option than any other deposit option.
