What are the Advantages of Investing in FDs Online?
A fixed deposit is an important component of a well-balanced investment portfolio. It protects your hard-earned money from the unpredictability of market fluctuations and offers the promise of guaranteed returns. Enhancing your convenience further, today, most banks allow you to book an FD digitally with just a few clicks, anywhere, anytime.
Here are the advantages of investing in FDs online and how they offer you a customised investment experience.
1. Open a standalone FD. No savings account needed
Usually, opening an FD requires you to have a savings account with the bank, but with the rise of digital banking, this is no longer a necessity. Today, you can start an FD online with just your Aadhaar and PAN card details. This democratisation means that more people can start investing their savings efficiently, even if they prefer to keep their day-to-day banking elsewhere.
2. High interest on fixed deposit plans
The operational efficiencies and reduced overheads of online banking allow banks to pass on the benefits to customers in the form of better returns. Hence, when you open a fixed deposit online, your money grows at a faster rate compared to traditional methods.
Better fixed deposit interest rates mean more substantial returns over the investment period and a larger maturity amount. This benefit acts as a strong incentive by drawing more individuals towards online banking.
3. Choose multiple types of FDs at your fingertips
Digital platforms let you invest in numerous types of FD online, such as:
| Types of FDs | Purpose and benefits |
|---|---|
| Cumulative FDs | Interest is compounded annually and paid at maturity. It is ideal for those looking to grow their savings substantially over time. |
| Non-Cumulative FDs | The interest on fixed deposit is paid out at regular intervals (monthly, quarterly, etc.), suitable for those needing periodic income. |
| Senior Citizen FDs | Offers higher interest rates to senior citizens, providing them with a more secure and profitable savings option. |
| Tax-Saving FDs | Allows you to claim deductions under Section 80C of the Income Tax Act, 1961 and comes with a five-year lock-in-period. Thus, you enjoy fixed deposit interest rates and benefit from tax savings. |
| Auto-Sweep FDs | A hybrid of savings accounts and fixed deposits, where excess funds in your savings account are automatically converted into an FD and earn higher returns. |
INDIE Fixed Deposits offer you an opportunity to book different types of FD with a 100% digital process. A cutting-edge digital banking app by IndusInd Bank, INDIE lets you earn an interest rate of up to 7.75% per annum on FDs. Enjoy an auto-sweep facility, various payout choices, and the ability to make payments directly from your FD.
Book your INDIE Fixed Deposit today and enjoy a truly digital investing experience.
4. Real-time monitoring and management
A digital or online fixed deposit offers you the convenience of real-time monitoring and management. No longer bound by time constraints or location, you can check the status of your investment, accrued interest, and maturity date anytime, anywhere. This helps you make more informed decisions about reinvestment or withdrawal for maximum benefits.
The ease of management through digital platforms means you don’t have to wait for quarterly statements to get clarity and control over your fixed deposits.
5. Ease of tax documentation
Investing in FDs online simplifies the process of gathering necessary documents for tax purposes. Many online platforms provide easy access to interest certificates and Tax Deducted at Source (TDS) certificates, which can be beneficial during the tax filing season.
To sum up
The advantages of investing in FDs online are many. You get the convenience of easy account opening, higher interest rates, real-time management, flexible payout options, and 24/7 accessibility. This high level of convenience and control explains why more and more investors are choosing online FDs.
So, embrace the digital route for your fixed deposits today. Enjoy a more streamlined, efficient, and profitable path to growing your savings.
