7 Reasons to Include FD in your Investment Plan During the Pandemic

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As the pandemic stretches, it has taken a toll on people’s economic well-being across the globe. Apart from other significant lessons, this pandemic has certainly taught us to stay prepared for the worst with a fixed income source to sustain such challenging times. Investing in a safe investment vehicle, like a fixed deposit, is an ideal option. Even as the market brawls with the aftermath of the slowdown, FD holders can expect a promised amount of return.


FD is an instrument in which you invest a lump sum amount of money at an agreed rate of interest for a fixed tenure. It helps you in earning interest regularly, which is unaffected by market fluctuations. FD is still a popular and preferred choice, especially for risk-averse investors and for people having short term financial goals.


FD is highly suitable for people  in lower income tax brackets; however, people in  higher income tax brackets can also invest in FD for liquidity and diversification purposes. Few reasons for which fixed deposits can prove to be gainful, especially during strenuous times, are:

  • Flexible Instrument

FD is considered a lucrative investment option for investors due to its flexible nature. The amount can be deposited for a tenure of 7 days to 10 years, as per your requirement. You can choose the amount as well as the tenure as per your convenience.

  • Unaffected by Market Uncertainties

Another advantage of FD, which attracts the investors, is its non-volatility to the market uncertainties. Your deposited amount will always yield returns for pre-decided tenure and interest rate, unlike market-linked instruments. Due to this reason, it is a safer option, no matter what the economic situation is.

  • Easy Access to Credits

During uncertain times, liabilities might arise. You can have easy access to the credit you want to avail on the basis of your FD. Mostly, loans amounting to 80-90% of your FD amount can be availed easily against a fixed deposit, which is not possible against your savings account.

  • Easy Withdrawal

In times of emergency, you can easily withdraw your FD amount whenever required. Just a small amount of fees is levied on the same. You’ll also have to compromise on the interest amount, but your urgent needs can be met immediately.

  • Retirement Planning

To plan for your retirement, you need a passive and stable income source, and what could be a better option than a fixed deposit? Depending on your requirement, you can choose the frequency, i.e., whether you require returns monthly, quarterly, or at the end of the tenure. This can become a regular income source for you.

  • Inculcates a Habit of Dedicated Savings

Right since childhood, we are taught to save money, irrespective of the amount. But human nature is to spend money whenever we can. However, once you start investing in FD, you’ll inculcate a habit of saving money as you earn interest on the same along with the saved amount. As we all know, a practice to save money is no more an option, rather a necessity due to rising uncertainties.

  • Magic of Compounding

With the FD reinvestment option, you get the benefit of earning interest on your principal amount and your interest amount as well. It is a good option for investors who do not need regular income currently. If you choose the cumulative returns option, you get a handsome amount of money when your tenure ends. 



                             Save and Create a Passive Source of Income Today


With the growing uncertainties, who would not prefer to save and earn money from a source that is unaffected by market volatilities? You should always invest in a measured way and create a good source of passive income and cope with difficult times. Reputable banks like Axis Bank provide good investment options like fixed deposits and mutual funds schemes through SIP (Systematic Investment Plan). You can keep depositing a small amount at regular intervals, rather than a lump sum amount in one go. You can reap a fair amount of interest and other benefits by investing in SIPs too.


Shield your future with a stable source of income today!


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