Fixed Deposit (FD) serves as a significant method of conventional investing. It provides assured returns. To enhance returns, banks and other financial entities provide appealing interest rates. Often, individuals also invest in FDs at small finance banks for enhanced returns. Clearly, you will receive guaranteed returns on a set amount. However, have you ever considered how secure the fixed deposit you created in a small finance bank is compared to a regular bank or post office?
Indeed, grasping this is essential. Small finance banks frequently provide elevated interest rates to draw in additional customers. Certain small finance banks are providing interest rates as high as 9.5% on fixed deposits for senior citizens, significantly exceeding the rates given by larger banks. Let us examine a few such aspects that you need to be aware of before creating a fixed deposit in a small finance bank, ensuring you decide to invest only after considering these factors. Fixed deposit is a popular savings plan among Indians.
FD has preserved its distinct position despite the increasing popularity of mutual funds and the stock market. Even now, the majority of ordinary citizens in the country view fixed deposits as the most secure form of investment.
You receive a guaranteed fixed yield on your investment in a fixed deposit. Elderly individuals receive 0.5 percent additional interest on FDs compared to regular customers. Ordinary individuals can select the duration of FD from 7 days to 10 years based on their preference.
Post Office RD
Recurring Deposit (RD) is a structured method of saving money consistently over time. In a recurring deposit (RD), investors contribute a set sum of money at consistent intervals, typically each month, to a bank or financial institution. These deposits grow over time and generate interest akin to fixed deposits. RDs also have a set duration, and the interest rates provided are typically manner.