How many of you have heard your parents or other elders encouraging bank fixed deposits?
In fact, many of you must have seen your parents advising you to do a fixed deposit as you start making your own money!
Am I right?
Well, Indians find fixed deposit a preferable, safe and low-risk path to gain financial security. Although the mindset has been here for a long time, it definitely has not lost its importance as well as charm in the long run! Therefore, if you also wish to gain decent returns with low risk, you must put in your savings in a fixed deposit account.
In this blog, I will explain how to open a fixed deposit account online with the country’s largest lender, the State Bank of India.
A fixed deposit is one of those financial investment instruments where you get a higher interest rate as compared to a savings account. As a result, your gains are pretty decent and there is no involvement of risk.
Apart from this, there are other benefits of having a fixed deposit account and those are -
In the words of Warren Buffett - “ Do not save what is left after spending but spend what is left after saving.” Well, these lines perfectly tell the importance of savings. Having a fixed deposit keeps you on your toes to save money regularly as with FDs you might have to invest a lump sum amount for a time period that is fixed.
One of the most striking features of fixed deposits is that they are free from any kind of market risk or volatility. You will get a set amount (according to the rate of interest) after the maturity period ends. Therefore, investors with a low-risk appetite can go ahead with fixed deposits.
Any asset is liquid when you can easily get cash in place of it and fixed deposits are liquid. Although you need to keep in mind that if you choose to withdraw the amount before the set maturity period you will have to pay a small portion of the penalty for withdrawing your money.
The range of time period for which you can invest your money in fixed deposit varies from 7 days to 10 years. This flexibility in tenure serves the purpose of almost every individual who is allocating his/her money towards a fixed deposit. For instance, you plan to buy your dream car in 2 years. Well, you can go with a tax-saving fixed deposit and keep the lock-in period of 2 years, it would serve your purpose.
Since the time of inception, State Bank Of India, the country’s largest lender has been helping the citizens with needed banking as well as financial services.
With its vast network of branches present in every nook and corner of India, SBI has gained a level of trust among the general public. Either you wish to walk down to any of its branches or save your energy by using its online services, SBI provides you with every possible banking facility.
As the fixed deposit is a popular choice for Indians and it also enables a convenient option to open it online. All you require is a decent internet connection!
So, let us see how you can open an online fixed deposit account, sitting comfortably inside the four walls of your home!
Did you see how hassle-free was it to open a fixed deposit with SBI?
A few clicks are all you need to begin the journey to secure the financial needs.
So, do not let your savings lie in your lockers, but try to invest it as much as possible. Let the money flow into the economy so that it can prosper in the long run.