People get their money in Fixed Deposit (FD) for a safe investment. The biggest feature of fixed deposit is that not only does your money remain safe in it as well as get fixed returns, but there are many other benefits of investing in FD. Which most people do not know about. Today we are telling you about 7 such benefits of FD that you need to know.
You also get income tax exemption by investing in a tax saving FD i.e. 5 year FD. You do not have to pay any tax on the interest as well as the principal amount deposited in it.
If you need money, you can take a loan against FD. You can pay as per your convenience. You can take a loan up to 90% of the FD value. Suppose the value of your FD is 1.5 lakh rupees, then you can get a loan of 1 lakh 35 thousand rupees. If you take a loan against fixed deposit, then you will have to pay 1-2% more interest than the interest on FD. For example, suppose you are getting 4% interest on your FD, then you can get a loan at 6% interest rate.
The biggest advantage of fixed deposit is that you are told at the very beginning of the investment that how much profit you will get on maturity. There is no risk in this. In any case, neither does he get more money nor less.
Apart from the safety of capital and fixed rate of interest, FD also comes with liquidity. They can be broken at any time when needed. If you wish, you can continue with the fixed deposit till maturity. It can be redeemed even before the maturity period. However, for doing so, the bank charges you some charge which is very less.
HDFC Bank, DCB Bank and ICICI Bank are offering Fixed Deposit with Insurance to their customers. In such a situation, if you make an fixed deposit in these banks, then you can also get health insurance for free.
Most banks offer credit cards against fixed deposits. One can get a credit card with a credit limit of 80-85% of the FD amount in the bank. Such an offer is good for those who do not have any credit score or those with low credit score. By taking a credit card against FD, banks take your deposit as security for the credit card expenses.
Your money will be safe in FD. Here the insurance facility up to Rs 5 lakh is available on the deposit amount. This means that if the bank defaults in any condition, then there will be a government guarantee on your 5 lakh rupees. That is, you will get 5 lakh rupees even in the default case.
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