Do you know that, on average, Indians save ₹4.25 lakhs in Fixed Deposits (FDs)? Millions of Indians trust this investment avenue for their hard-earned money, with more than ₹103 trillion currently saved in these accounts across the country. This trust comes from the important role they play in enhancing financial wellbeing.
Recognised for their multiple qualities, fixed deposits are a valuable component of personal financial planning for countless individuals. Let’s understand those qualities of FDs and how they boost your financial wellbeing.
A safe haven for your savings
Unlike market-linked investments that come with the risk of volatility, your fixed deposit account is protected from market fluctuations. The interest rate you get offered remains the same throughout the tenure.
This predictability makes FDs an ideal choice for risk-averse investors or those focusing on capital preservation in their later financial years.
Attractive term deposit interest rates
When you choose IndusInd Bank Fixed Deposits, you get to enjoy an incredible interest rate of up to 7.75% p.a. These higher rates directly amplify your financial wellbeing by maximising the returns on your investments. Make sure to check the bank’s website for updated interest rates to make an informed decision. Besides high rates, you enjoy additional benefits like:
A 100% digital booking process
Book your FD online in just three easy steps using only your PAN and Aadhaar details.
Multiple interest payouts
Select from monthly, quarterly, half-yearly, yearly, or at-maturity options for interest payments.
Flexible booking amount
Instantly book an FD of any amount with video KYC.
Tax Saver FD
Invest in a five-year FD and enjoy tax savings.
FD return calculator availability
Use the FD calculator to plan and assess your potential earnings.
Book your IndusInd Bank Fixed Deposit today to secure your money and watch it grow!
Income tax benefits
Tax-saving FDs offer benefits under section 80C of the Income Tax Act, 1961. Under this section, you are eligible to claim deductions of up to ₹1.5 lakh per year, which can lower your taxable income and tax liability. Note that tax-saver FDs have a strict five-year lock-in period from the date of account creation.
Moreover, if your total interest income from all FDs is under ₹40,000 (₹50,000 for senior citizens aged 60 and above), no TDS is deducted.
Borrow against your FD
Most banks let you borrow up to 90% of your FD’s value at lower interest rates than personal loans. The best part is that you will continue to earn interest on the deposit even as it serves as collateral for the loan. This way, you get a balance of liquidity and uninterrupted investment growth for your savings goals.
A ladder to financial discipline
FD laddering is a strategy in which you invest your funds into multiple deposits of different maturities. This way, you create a cycle of accessibility. As one FD matures, you can reinvest the proceeds for another tenure at higher returns or use it as needed.
For instance, if you invest ₹10 lakh in 5 deposits of ₹2 lakh each with maturity periods ranging from one to five years, you get annual liquidity. This method gives you a regular income flow, helps you handle finances more predictably, and protects you against emergency monetary needs.
Enjoy multiple payout options
Many fixed deposits offer flexible payout options, such as monthly, quarterly, or annual interest disbursements. Just choose the payout schedule that is most suitable for your liquidity needs and enjoy regular income without touching your principal amount.
This consistent cash flow enhances your financial wellbeing by giving you predictable monetary support. It is more beneficial during retirement or any phase of life where a regular income is needed.
To sum up
Fixed deposit schemes offer safety, predictability, and convenience. Together they form the backbone of your financial strategy. Moreover, with Deposit Insurance and Credit Guarantee Corporation (DICGC) backed insurance, customisable tenures, tax benefits, and the ability to use them as collateral for loans, FDs help build financial discipline and offer a safety net during emergencies.
So, book your fixed deposit today and leverage these benefits to enhance your financial wellbeing in the long term.
