Bank FD: Bank Fixed Deposit is considered to be the safest and best return investment option. This is the reason why FD is the most preferred investment option amongst most of the people. At present, apart from the return on FD, there are many other facilities available.
New Delhi. Even after other options for savings and investment, most people prefer Bank Fixed Deposit. Apart from good interest rates, many advantages make it the most preferred option for savings among people. Insurance and Income Tax Exemption are available on FD. Some banks are also offering healthcare benefits to FD account holders. In such a situation, if you are taking the decision of investing only by looking at the interest rate available on FD, then it is not enough. There are several things that bank depositors should keep in mind while opening an FD account.
FD account can be opened at an early age
There is no dearth of investment options at present. Even after this, the biggest challenge is which option is right for investment. Fixed deposits are not a new tool for investment, but FDs are a smart choice considering the volatility in the market. The biggest advantage of fixed deposits is that FD account can be opened in very small amount and at a young age. With safety on this, better returns are also available. Let us know what are the benefits available on bank fixed deposit investment?
Saving habit and assured returns
Investing in fixed deposits inculcates the habit of saving from an early age. It gives safe and assured returns. It does not see volatility like any other asset.
Facility to open FD account sitting at home
Now fixed deposit account can be opened sitting at home. Facility to open FD account is available through internet banking and mobile banking. Thus it is no longer a long and elaborate process. FD account can be opened in few minutes.
Insurance/Healthcare Benefits on FD
FDs are considered to be the most traditional and reliable savings option. In today’s time, banks even offer free life insurance to make it the preferred option. Some fixed deposits offer free life insurance cover equivalent to FD amount up to Rs 50 lakh. At the same time, healthcare benefits are also available.
You will also get the benefit of income tax exemption
Banks also offer tax saving FDs. On this, the benefit of tax exemption is also available under section 80C of the Income Tax Act 1961.
Overdraft facility on bank FD
Some banks also provide overdraft facility on FDs. With this, in case of an emergency, funds can be obtained without breaking the FD.
