Last Updated on April 15, 2024 by Jawad Ali
Everyone looks for ways to invest their savings into a financial instrument that can keep their funds safe and give reasonable returns. These days, there are a number of options where you can invest your money and watch it grow. However, not all instruments are safe and most do not come with guaranteed returns.
A Fixed Deposit (FD) is one such investment option that gives the investor reasonable and fixed returns and also keeps the investor’s fund free from market risks. Additionally, you can park your funds in a flexible FD and decide if you want to receive the interest payouts at regular intervals during the FD tenure or at its maturity.
If you have accumulated some funds over the time or have received additional funds in the form of incentives and bonuses, you can invest them in a fixed deposit with a reliable and reputed bank like RBL Bank Ltd. This way, you can ensure that you do not indulge in impulsive spending and develop a habit of saving. Here are the top five reasons why you should invest your incentives and bonuses in RBL Bank Ltd.
5 Reasons To Invest in an RBL Bank Fixed Deposit
- Keep your funds safe from market fluctuations: Other investment options like equity and mutual funds come with a certain amount of risk. These are market-dependent tools and their growth depends on the growth of the market. On the other hand, fixed deposits are free from the effect of market conditions. Moreover, the economic environment of the country or the political stability does not affect the interest returns on an FD. Once you open a fixed deposit account, the bank decides the interest you will receive on your investment. The interest returns do not change for any reason after this point. Therefore, your money is safe even if there is an economic downfall or political unrest in the environment.
- Invest your money for a flexible tenure: It is crucial to have periodic financial goals. Contrary to popular belief, a fixed deposit is a flexible investment option. You can choose to invest in a fixed deposit for a duration of your comfort. If you need the invested money after a short duration, you can invest for the short term. If you want to keep your money invested for a long duration, you can invest your bonus for a longer time and get higher returns. With a fixed deposit with RBL Bank Ltd., you can invest your funds for a duration of your choice between seven days and 20 years. It gives you ample flexibility to chalk out your financial goals and decide when you would need the money.
- Save on your taxes in addition to returns: You need to pay taxes on all your earnings. However, you can save on your income tax payment by investing in a Tax Savings fixed deposit. The maximum aggregate amount of investment you can make in a tax-saving fixed deposit on a single Permanent Account Number (PAN) is Rs.1,50,000. You cannot close this fixed deposit prematurely before a period of five years. It is a great feature for people who do not have a habit of saving money on their own since their money gets locked for five years and they cannot spend it unnecessarily for the duration of the fixed deposit.
- Earn reasonable and assured returns on your funds: The fixed deposit interest rates offered by RBL Bank Ltd. are one of the best in the industry. Fixed deposit interest rates are much more than a bank’s savings account. Senior citizen Fixed Deposit is for individuals aged 60 to 80 years and super senior citizen FD is for individuals aged 80 years and above. Senior investors can earn 0.50% more on their FDs, and super senior citizens can earn 0.75% more.
- Use your fixed deposit to avail credit: It is a common perception that your money gets blocked in an FD and you cannot use it for any other purpose. You can use your fixed deposit to avail of overdraft or credit card against it. The loan amount against FD can be up to 90% of the FD amount and you can avail of it for a maximum period of five years.
Investing your money in a flexible FD with RBL Bank Ltd. gives you the benefit of saving money safely and earning good returns on your extra earnings.
Apart from this, if you want to know about 4 Benefits of using Bajaj Finance FD calculator then please visit our Finance category
