Investing in a mix of assets is healthy for your portfolio and so you should invest in both equity and debt instruments for a well-balanced portfolio. When it comes to debt instruments, fixed deposits rule the roost. It enjoys tremendous popularity among investors because it offers fixed returns and allows long term investments. Some of the features of fixed deposits, which make them attractive, are as follows –
They offer you flexible investment tenure. You can invest for a period ranging from 7 days to up to 10 years
The interest rate on fixed deposits is fixed during the tenure of the investment. Even if the market is volatile and providing negative returns, fixed deposits remain unaffected
Senior citizens can enjoy a higher interest rate on their deposits
If you choose 5-year fixed deposit schemes, you can get tax deduction on the amount invested. This deduction is allowed under Section 80C up to Rs.1.5 lakhs
Interest earned on fixed deposits is allowed as tax-free incomes for senior citizens up to a maximum of Rs.50,000 under Section 80TTB of the Income Tax Act, 1961.
To invest in a fixed deposit scheme, you have various options. These include the following –
Through the branch of a bank
1: You can visit the branch of the bank where you want to open the deposit account. Use the application form, make the deposit and submit your KYC documents and the fixed deposit account would be opened.
2: Online through the bank’s website
Many banks are, nowadays, allowing the facility of online applications for fixed deposits. You can log into your online account if you have an account with the bank with which you want to open the deposit account and apply for the fixed deposit. Alternatively, you can visit the website of the bank with which you want to open the deposit and apply online.
3: Through aggregator websites
There are many financial aggregator websites which allow you to invest in fixed deposits online. You can visit the website of a reputed aggregator and then choose a fixed deposit of your choice.
4: Through the ETMONEY App
Modern day technology has made everything simple and there are many mobile applications which you can download and use them for your needs. The ETMONEY App is a specialized personal finance platform which helps you buy fixed deposits online in some simple clicks of your fingers. You can download the ETMONEY App on your Smartphone and start your investment journey. Create your personalised profile on the application and then invest in fixed deposits online.
The benefits of using the ETMONEY App to invest in fixed deposits are as follows –
1: The investment process of ETMONEY FD is easy and can be done from your own home or office without having to step out and visit the bank’s branch
2: The KYC formalities for investing in ETMONEY FDs are online. You can upload your KYC documents to complete the KYC formalities and open an FD account in an instant
3: The ETMONEY App offers both bank FDs and company FDs which offer a higher rate of interest. You can, therefore, choose from a range of FD options as per your needs
4: Once invested, you can also track your ETMONEY FD’s growth through the application at different times
5: The application is encrypted and secured so that you can easily do financial transactions without having the worry of cyber frauds
The recent Coronavirus pandemic has caused restrictions on movement as people practice social distancing. As a result, the online mode of transacting is gaining prominence and investing in fixed deposits is no different. So, avoid stepping out for your investments as the ETMONEY App allows you the facility of investing right from your home. Use the app and invest in the best fixed deposits to get guaranteed returns.