Thanks to their ease of use and lucrative returns, IndusInd Bank’s fixed deposits are a popular investment tool for countless investors.
You can open a fixed deposit with IndusInd Bank online from the comfort of your home, start with a small amount, and allow it to grow with compound interest.
Now, if you are an experienced investor, you might be wondering why you should put your savings in a fixed deposit. Because they can protect your money during times of economic crisis.
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Read this article to learn how.
#1 Guaranteed Returns
Once you create an online fixed deposit with IndusInd Bank, you can rest easy as you will gain guaranteed interest. This is because fixed deposits are independent of market fluctuations, unlike other investment avenues such as bonds, stocks, real estate, or mutual funds. Therefore, opening an FD is a sure-shot way to protect your wealth and watch it grow with time.
#2 Fixed Interest Rates
Unlike other investment vehicles, when the markets fluctuate, the interest rates on fixed deposits remain the same. Thus, if you have booked an online FD at a specific interest rate for a given tenure, you will continue to earn the same rate of interest until maturity.
In this way, you will not lose out on interest earnings during an economic crisis and calculate your returns in advance to plan your financial goals.
#3 High Liquidity
In times of a financial shortage, you may require funds to cover your expenses. During such circumstances, an online FD can come to your rescue! You can access the money invested in the fixed deposit because of their liquidity.
And when you create an online FD with IndusInd bank, you can choose an FD that does not have a lock-in period. Hence, during a financial crisis, you can close your FD online with just one click and transfer all the money to your savings account instantly. Then, you can make payments or withdraw cash as per your needs.
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#4 Insurance of Up to Rs. 5 Lakh
IndusInd Bank’s online fixed deposits are insured for up to Rs. 5 lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a wholly-owned subsidiary of the RBI.
This insurance covers the principal amount as well as the interest you have earned over the years. Thus, you will not lose your money even if the bank faces a crisis. Besides, both online and offline fixed deposits are insured, so both are equally secure.
#5 Loans Against FDs
If you need to arrange quick cash during times of economic crisis but do not want to break your FDs, you have the option of taking a loan against them.
You can get a loan up to 85–90% of the total fixed deposit value. You can renew your loan along with your fixed deposit. The rate of interest on a loan against a fixed deposit is around 2% higher than the interest rate on your fixed deposit. Moreover, you will not have to pay any processing fee or bear any prepayment charge on this loan.
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Fixed deposits are the most reliable investment instruments during unprecedented times and are an excellent tool to secure your future. So, if you have surplus funds lying in your savings account, putting them in a term deposit is a smart move.
What’s more, you can also use a fixed deposit as an emergency fund or security if you need to take a loan. Thus, it is prudent to have a fixed deposit in your investment portfolio