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Fixed Deposits: A step Towards secured Future.
Money can seldom be earned by shortcuts or comfort, as a matter of fact earning money requires a lot of hard work. Money in this present world is a basic necessity, it is used to get our needs as well as luxuries. Earning money and then saving it for future or when one gets old has become a crucial thing. There are many ways in which this hard earned money can be invested and secured. If you're thinking about investing in a fixed deposit, then you're already on your way to securing your financial future. This step will give you a lot in return.
Investing through a fixed deposit scheme have become widely popular, since they are one of the most stable methods of investing, and you're assured of getting a return. Once you start looking into FDs, check the interest rate that your bank is offering you and see how much you stand to gain at the end of the tenure period.
Here are some facts and reasons why Fixed Deposits are one of the best methods of investment.
They are One of The Safest Methods of Investing
If you're thinking of investing in something like the stock market, then you know that there's a considerable level of risk that you have to take into factor. You don't have any surety whether your money is gonna double or can get sunk. But that's not the case with fixed deposits. They're known to be one of the safest methods of investing. You can choose FD investment schemes that will always expect a return. Plus now a days you can withdraw money from your FD any time you want.
Flexibility to Your Needs
These fixed deposits are essentially designed to have maturity periods that are suited to your convenience. You can choose to lock in a sum of money for as little or as long as you want. Keep in mind though, that you won't be able to access the money during that period, since it is in the maturation period. Keep this in mind when you're thinking of opening a FD account.
Save taxes for you .
You Can Save on Taxes, While in other methods of investments, you can and will be regularly taxed, fixed deposits are only taxable once they break the exemption limit. This means, if you can plan your deposits properly, tax saving methods can be all the more beneficial for you, keeping money in your hands without having to pay taxes unnecessarily.
They can become a source of income.
Depending upon the interest rate that your bank is providing, having a number of fixed deposits add up to your income. In a way, the principle amount is safe and the interest that comes because of this is your income. If you have a number of fixed deposits in a number of banks, they can also be a sizable source of income for you, meaning that you can put your other money into other investments, keeping your finances secure.