How does the FD option in the ICICI savings account help maximize savings?

May 28, 2020

How does the FD option in the ICICI savings account help maximize savings

Fixed Deposit is a secure financial investment instrument offered by banks which allows you to deposit your money and maximise your savings with a high rate of interest. Fixed Deposits (FDs) are a good conservative avenue. Besides being safe and one of the oldest investment instruments, they offer a guaranteed return on your invested capital. FDs are easy to comprehend and a great option to start your investment portfolio as the market involvement and risk factor is extremely low.

With Insta Save FD, you can open an FD instantly online with ICICI Bank even if you do not have any existing Savings Account. The best part is that, you also get a Zero Balance Savings Account when you open an FD of Rs 10,000 for a duration of 12 months.Open Insta Save FD now.

You should look for ways to diversify your investment portfolio into various types of fixed income and variable income investment sources.

Here are the benefits that FDs offer:

Encourages savings

To reap the benefits of a Fixed Deposit, the holder must invest a lump sum amount for a fixed period of time to receive the desired interest. This encourages an individual to save a larger amount without making a conscious effort. FDs hold your money for a fixed tenure, accruing interest till maturity which helps in the efficient management by avoiding the temptation of withdrawing your funds under the predetermined period.

Guaranteed returns

Investing in FDs gives you guaranteed returns as it does not depend on fluctuating market rates. It saves you from the uncertainties of investing in stock market or the commodity market. You can grow your savings at a low risk and get a guaranteed return at the end of the tenure. This makes it an attractive investment for risk-averse investors.

Provides flexibility

It provides you with the flexibility of investing in an FD for a tenure that fits your business or personal needs. It enables you to let your savings grow for 7 days or a decade. Suppose you intend to travel in 5 years or get your child married in 8 years, you can keep your FD for a desired amount of years to meet your financial requirement.

Quick cash withdrawal

FDs are liquid in nature and can be cashed out anytime as per your requirement. This gives you a sum within reach for when you are in dire need. You can even take a loan against your FD, so that your savings are intact.

Higher return on investment

The rate of interest offered on FDs is higher than that on saving deposits. For senior citizens, an FD is the best investment to maximise savings as they can deposit their hard earned money with no fear and receive a high rate of interest.

Regular earning potential

You can safeguard your money and earn a fixed interest rate for a defined period. It is an ideal option if you are on the lookout for a conventional way of earning more money. An FD can provide a profitable stream of income throughout the life of the investment.

Loss on inflation is covered

The interest rates highly depend on the bank you are applying from. Banks offer competitive interest rates for Fixed Deposits compared to a regular Savings Account which could help compensate the annual inflation rate. ICICI Bank decides the interest rates of FD in a manner that it is higher than the existing inflation rates. Inflation has a positive effect on the interest rate as the FD rates are higher in a period of rising inflation.

Easy loan against FD

If you are in dire need of money, taking a loan against your FD is a smarter decision than breaking your FD and incurring a penalty. Loan facilities are available up to 90% of principal and accrued interest. Multiple offers and a simple process make availing of loans extremely easy, which is why you do not need to choose between saving your money for a rainy day or maximising your savings.

When you don’t work, your savings will work for you. Make a smart financial decision by opening an Insta Save FD Account. With the different kinds of FDs offered by banks operating the market, ensure you conduct comprehensive research before you apply for one. It can be done conveniently through a number of channels like Internet Banking or Customer Care or simply by visiting the nearest ICICI Bank branch.

Open your savings account, now.

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