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Investments Tips on How to Invest in Fixed Deposits Online

Author: Arwind Sharma
by Arwind Sharma
Posted: Dec 28, 2016

Fixed Deposits have long been known as the safest option for surplus cash.

It is one of the best investment methods in the market owing to the low risk and high returns that comes with a stable Fixed Deposit (FD) account. If you have surplus cash, and are looking for an investment option that gives you stable returns, then it’s about time you have a look at what a FD has to offer.

Why Fixed Deposits?

Fixed Deposits although preferred, are also highly criticized due to their tax deductions. Fixed Deposit taxation is one of the many features that make investments difficult for investors. However, it proves to only be a slight inconvenience to others. Simply put, Fixed Deposit can be the best investment should you be careful with your choice of bank/NBFC.

Moreover, FDs in general have gotten much easier to invest in when compared to other forms of investment. There are many ways in which you can invest in a FD; online. If you’re wondering how to invest in Fixed Deposit online, then there are simple online portals that make the process simple and quick.

Best Investments For Fixed Deposits

A business investment is the preferred choice of investment most investors would make in a Fixed Deposit. If you’re a novice in the Fixed Deposits world, then it’s ideal to choose your business investment in Fixed Deposit. Another great benefit of an FD is that it encourages you to save money, and avoids endless expenses.

Other investments you can make in Fixed Deposits include your savings. It’s almost always beneficial to opt for a Fixed Deposit account than a savings account as the returns are much more impressive and beneficial in the long term.

Fixed Deposit Account, and its Benefits

Besides the beneficial returns, there are other benefits that come with an FD account. These benefits include;

  • Flexibility in terms of repayments. You can choose from yearly, quarterly, or even monthly returns. This property of an FD makes it a preferred form of investment for those looking to retire, as it ensures monthly income in the form of interest returns.

  • Making business investments insures that your money is in the right place and is kept safe. It’s also a great way to make your money work for you,

  • You can also open multiple FDs with different dates of maturity, depending upon your long term and short term goals. This ensures that you have a reliable amount of money kept aside for if and when you face a financial emergency or crisis.

  • A flexible tenure makes it a dependable option for everyone. You can choose a date of maturity starting from as little as a month to as long as ten years, depending upon whatever your financial goal is.

There are however, many other concerns that come with an FD. For example, if you are deciding between an FD in a bank and an FD in a corporate, there are many logistical differences, that could well prove to be inconsistent with your financial aim and risk tolerance.

Fixed Deposit taxation can prove to be a financial burden that many cannot overcome should it escape their notice at the time of opening an FD.

About the Author

Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India.

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Author: Arwind Sharma

Arwind Sharma

Member since: Oct 18, 2015
Published articles: 25

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