Here are the Top-5 Benefits of Fixed Deposits For Working Women
Fixed deposits are an oasis of hope amidst a sea of despair. Possessing an FD certificate is considered the best way to beat all financial odds.
As a working lady, fixed deposits can be your perfect partner for achieving financial freedom.
Read on to discover the top benefits of fixed deposits for working women.
The Top Five Benefits of Fixed Deposits For Working Women
Affordable Minimum Amount For FD
The minimum amount required for opening an FD account is generally INR 10,000.
Moreover, unlike government savings schemes like PPF, MIS, or SCSS, there is no upper limit to fixed deposit investments.
Hence, you may start from INR 10,000 and go as high as you want. A fixed deposit can create an alternative revenue source besides your salary or business income.
High Interest Rates
Fixed deposit interest rates may be as high as 6.95%. Also, the interest you get from an FD is free from TDS deductions of up to INR 5,000 every financial year.
However, fixed deposit interest rates depend on the financial institution's type. Banks generally provide the lowest rates, and housing finance companies, such as PNB Housing Finance, offer the highest rates.
Hence, if you want your capital to grow faster, you may explore housing finance fixed deposits.
Optimal Security
If you consider investing in housing finance fixed deposits, you may need to evaluate the financial institution's safety rating.
Housing finance fixed deposits are rated by credit rating agencies like CRISIL and CARE, which evaluate multiple parameters while rating housing finance FDs. Generally, FAA+ rating by CRISIL and AA rating by CARE is considered the best.
Hence, a CRISIL FAA+ and CARE AA rated fixed deposit provides you with optimal security and high interest rates. You may invest in such fixed deposits to enable faster capital growth.
Multiple Payout Options
Since the minimum amount for FD starts from a lowly INR 10,000, you may invest in a cumulative fixed deposit to grow your capital.
When you invest in a cumulative FD, your money remains locked until maturity. You can withdraw the principal and the interest on maturity.
However, if you need a fixed income every month, investing in a non-cumulative FD will be a better decision. A non-cumulative fixed deposit pays you the interest every month, quarterly, half-yearly, or annually.
Value-Added Features
Housing finance companies, such as PNB Housing, offers various value-added benefits to their fixed deposit customers. Every investor depositing the minimum amount for FD becomes eligible to receive the following services:
• Doorstep Service - You can avail of the doorstep service facility to open an FD account. The representative visits your location and helps you apply for the FD.
• Auto-Renewal - You may instruct the financial institution to renew the FD on maturity automatically.
• Loan Against FD Facility - You may also avail of a loan by submitting the FD certificate whenever you need money urgently. The interest rate is usually 1% to 2% higher than the prevailing fixed deposit interest rates.
Conclusion
Fixed deposits can help you reach your financial goals faster. As a working lady, your financial liabilities are often more than your earnings. The minimum amount for FD you invest now can return a much more significant amount after a few years. Invest in an FD now to stay ahead in life.
