Pune, Maharashtra, India: It’s again that time of the year when many salaried employees must have received a pay hike and performance bonus as part of their annual appraisal process. Many of you may splurge on consumption and lifestyle with the surplus money; however, the smartest move is to use the additional income in a productive manner. As a healthy financial practice, you should channelize this money into avenues that can give you better returns and help you create wealth and secure your finances while safeguarding your long term financial goals. One such avenue is bank fixed deposits that guarantees fixed returns with minimum risk.

Fixed Deposits work on a simple principal - high liquidity and lower risk along with fixed returns. One of the primary advantages of FD is that it protects your capital in the long run and also gives you assured returns. Flexibility is one more element that makes this asset class an attractive one. Bajaj Finance Limited offers an interest rate up to 9.10% on their Fixed Deposit options. These rates are offered on an annual basis, applicable under the cumulative and non-cumulative payout schemes on a 36-60 months tenor.

In most cases, the tenure of a Fixed Deposit can range from 7 days to 10 years, giving you ample flexibility. Longer term FDs yield higher interest rates than short term ones. Besides just earning interest you can get a tax benefit if it is kept for 5 years or more. Hence, if you are salaried employees and looking at opting a tax saving investment plan, Fixed Deposit looks like an attractive option.

Here are some of the features of FD that you should know before you decide to put in your money in a bank fixed deposit –
 

• Fixed deposit enables you to earn a higher rate of interest on your surplus money with guaranteed returns
• You can deposit your amount only once in a fixed deposit. For more deposits, you need to open separate fixed deposit accounts
• The period of FD ranges from 15 days to 10 years
• Withdrawal before the maturity date is not allowed. However, in case you need to withdraw your money for any emergency, the bank would charge a penalty
• With fixed deposits, you can develop a healthy habit of saving your surplus money for a longer period and on maturity, the amount can be used to make purchase of assets
• Market fluctuations have no effect on your fixed deposits which ensures greater safety of your investment capital
• FDs indirectly boost the economic development of the country

So, don’t let your money sit idle in your bank account, instead multiply your extra income by investing in a fixed deposit and see your money grow at zero risk in the long run. This would ensure stability in your financial growth and save you from the risk of financial uncertainty.