Generally in February-March months, the question often arises in people's minds that where should invest to save tax? Some people make investment in some risky place for gaining more profit hence, as a result the investment saves your tax but causes a lot of loss. The solution to cover the losses is to wisely open a fixed deposit account and deposit your money & get interest on that amount.


What is FD?

Fixed Deposit is a type of saving investment plan that gives you a fixed rate of interest until maturity period. This is a one-time investment plan. It is just a medium to save your money and gaining interest on that amount.

Have a look on the advantages of having a fixed deposit account:

  1. Guaranteed Return on Investment:- There is a guarantee of return on Investment for FD is fixed and over a specific time period.

  2. No Hidden Charges- There is no hidden charges while investing your money in FD account.

  3. Risk- There is no risk in FD because the investor is surely confirmed about the fixed returns.

  4. Option for making Nominee: Investor chooses their own nominee. In the case of any mishappening with the investor's the nominee is able to repay the deposit of the amount and all other activities.

  5. Flexible Tenure Facility- The flexible tenure facility of fd make it different from other investments. The investors can choose the investment option according to their choice. It can be monthly, quarterly or annually.

  6. Loan is available on FD: If you are in urgent need of money, then you can take a loan on FD. According to the convenience, you can pay it. You will have to pay interest but FD will be saved.

Before opening the account you must have to keep ready the document requirement for fixed deposit. Apart from that there are much more preferable advantages of investment in FD. Hence, it is more popular than any other saving plan.