Women need to examine their financial requirements and devise the right investment plan that helps them build a corpus of substantial funds to cater to all your future goals. With the right amount of finances, you can fund the purchase of your new vehicle, pay for your child’s overseas education, take care of your parent’s medical requirements, and contribute to the household income with ease. So, whether you earn a salary or receive monetary gifts, make your money grow by investing it right.
Consider varied short-term and long-term investment Plans for Women’s offered by various, like a fixed deposit, recurring deposit, PPF, shares and more for your portfolio. However, in order to earn high-interest returns and reduce your exposure to risk, choose FDs as a vital part of your portfolio.
Take a look at how FDs can help you have a financially stress-free future.
- You have a limited access to spend on unnecessary expenses
When you invest in a cumulative FD, you lock in your invested amount for a tenor of your choice. While your investment earns interest, you lose access to both your investment and earnings until maturity. This keeps your funds undisturbed for a longer duration. Moreover, choosing to invest in a number of FDs will help you put in all your surplus funds to good use, which in turn will leave you with only the amount you need to finance your necessities. This way you can curb unnecessary expenditures and can meet your financial goals with ease.
- You can earn more than in a savings bank account
It is a widely known fact that a savings bank account offers an only negligible interest rate of around 3% to 4% as compared to fixed deposits. These returns don’t beat inflation or give your money a chance to thrive, so investing in higher yielding investment options is prudent. For instance, when you invest in a Fixed Deposit from reputable issuers like Bajaj finance, you can earn a significant interest rate of up to 8.75% when you invest in a cumulative FD for at least 36 months. Moreover, on the same FD, you can earn up to 9.10% as a senior citizen.
You can also start an FD with a minimum deposit amount instead of letting it sit idle.
- You can plan your finances beforehand and achieve your goals
Investing in an FD also helps you fund emergencies and future goals with ease. When you invest in an FD for over 3-5 years, you not only earn inflation-adjusted returns but are also armed to honor your financial goals and obligations. The best way to enjoy liquidity is to ladder your FDs. With your investments maturing at different points in time, you will always have funds in hands to meet your responsibilities.
- You will be better armed to address emergencies
Though fixed deposits are locked in throughout your chosen tenor, they can also come in handy when it comes to meeting emergency needs. There are two ways that an FD proves to be of worth in emergencies. One, you can request for a premature withdrawal, but have to be prepared to bear the penalties. Second, pledge the FD as collateral and avail a low-interest loan against it. This way you can meet your emergencies while your FD keeps earning interest. Generally, you will be charged only around 2% more than your Fixed Deposit(FD) interest rate for a Loan against an FD.
- You can enjoy tax benefits on investments and returns
Finally, an FD also confers attractive tax benefits upon you. For instance, you can claim an exemption of up to Rs.1.5 lakh every year for your FD investments under Section 80 C of the Income Tax Act. Added to this, you can also claim a tax exemption of up to Rs.10,000 on your yearly bank FD interest earnings, which has a maximum cap of Rs.50,000 if you are a senior citizen. On company FDs, you can claim up to Rs.5,000 basis your yearly FD interest earnings.
You are now just one step away from a healthy financial life. So, put off any delays and start investing! If you wish to earn good returns by assuming low risks, choosing the mix of good investment options alongside FDs will do the trick for you. So, include assured high-interest return investments like recurring deposits, government bonds and PPFs on one hand.
On the other hand, invest in SIPs, shares, and mutual funds to yield higher interest directly from the market. So, according to your risk appetite, pick your investment options to build a financially secure future for yourself and your loved ones.