Investment

5Reasons

5 Reasons to Invest in Fixed Deposits

The best way to build your wealth is to invest wisely. As a part of this financial exercise, you can keep some portion of your savings in Fixed Deposits (FDs). These secure investment instruments offer assured returns at an attractive rate of interest.

Moreover, they offer multiple benefits such as flexible tenure, easy online application and a high safety rating. Depending on your risk appetite and goals, you can also leverage a fixed deposit by taking a loan against it.

Here below are five sturdy reasons as to why you should invest in an FD:

Safe and Secure

Most market-linked instruments are volatile, and are easily affected by the current economic scenario. However, such is not the case with FDs. When you invest in an FD, your principal amount and accumulated interest, are both secure despite fluctuating market conditions.

Guaranteed Returns

When you put money in an FD, you know exactly how much you are going to earn through the term, or at maturity. With the assured principal and accumulated interest on hand, you can better plan for your longer-term financial goals.

Easy Liquidity

In case of an emergency, you can easily withdraw the money from your FD before maturity. In such cases, a penalty may be levied for breaking the deposit, but all in all, the process is quite simple. Most importantly, this facility helps dispense funds during a financial crisis or time of difficulty.

Flexible Tenure & Payouts

FDs offer full flexibility with regard to the term of investment. It could range from 7 days to 10 years. An investor can select any time-period that suits his needs. Further, FDs let you choose between cumulative and non-cumulative interest rates.


While non-cumulative FDs offer periodic payments on a monthly, quarterly, semi-annual or annual basis, cumulative FDs give you compounded interest at maturity.

Loan Against FD

If you hold an FD, you can also use it to leverage a loan when you need one. Usually, you can avail a loan up to 70% of the FD amount, that too at a competitive rate of interest.


In this day and age, a fixed deposit scheme is a safe and secure avenue to invest your savings. With assured returns and zero volatility, you can continue to build your wealth and create a sizeable corpus for your family.

If you’re searching for the best FD rates in the market, be sure to check out the Mahindra Finance fixed deposit. It offers the most competitive rates along with a bucket of future benefits.

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Principal: 75 %
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