Have you been thinking about investing in a Fixed Deposit (FD) lately and are clueless about the minimum investment amount? Either way, investing in a fixed deposit or knowing the minimum investment amount is an easy task. You can finalise on the bank or NBFC that offers reasonable interest rates, find the minimum investment amount for the respective bank and open an FD with the deposit amount of your choice. Leading NBFCs like Shriram allows investors to open a fixed deposit with a minimum investment of Rs. 5000 and even offer one of the highest interest rates in India for all fixed deposit investments.
A fixed deposit is an investment scheme offered by banks and NBFCs wherein risk-averse investors deposit a considerable amount of money in exchange for attractive fixed returns at maturity. The fixed deposit tenure ranges between 7 days – 10 years, depending on banks and NBFCs, and the interest rates are usually higher than a savings account. Besides, you should know that fixed deposit accounts from banks yield lower interest rates than those of fixed deposit accounts from NBFCs like Shriram.
How Does a Fixed Deposit Work?
In a fixed deposit, you lock your fund, i.e. the principal amount for a fixed tenure, at an interest rate determined by the bank or an NBFC. Over time, your principal amount will earn interest rates, and you can either choose to receive regular payouts (Non-cumulative Fixed Deposit) or at maturity (Cumulative Fixed Deposit). However, if you want to make a premature withdrawal, you may be required to pay the penalty.
The interest rates play a vital role in a fixed deposit investment. As NBFCs like Shriram currently offer attractive interest rates for a fixed deposit investment, many investors are leaning towards FD investment with NBFCs. In addition, to attract senior citizens to make fixed deposit investments, banks and NBFCs offer special interest rates on top of the standard interest rates for investors above 60 years.
You can easily open an FD account with a bank if you have a savings account. And with an NBFC, you can easily submit proof of identity and address for KYC verification and open a fixed deposit account. As internet usage has increased, many NBFCs and banks have made account opening easier by offering online facilities to open a fixed deposit account.
Minimum Investment Amount for a Fixed Deposit
The investment amount in a fixed deposit determines the total value of an FD at maturity. It is better to deposit a large amount of money into a fixed deposit account. However, you can also open an FD with a small minimum investment amount. Usually, the minimum investment amount is Rs. 5,000, but it differs from banks to NBFCs.
A leading NBFC like Shriram accepts fixed deposits with a minimum investment amount of Rs. 5000.
Top 5 Reasons to Open an FD with a Minimum Amount
The biggest challenge about saving money is “how to get started”. Many investors lose the opportunity to open an FD, thinking they do not have enough funds. However, they have an investment amount that meets the criteria to open a fixed deposit account.
Here are a few benefits of opening a fixed deposit account with a minimum amount:
Opening a fixed deposit account with any minimum amount is better and more beneficial than not opening a fixed deposit account at all.
Opening a fixed deposit with a minimum amount will yield the same attractive interest as the fixed deposit with the maximum amount.
Investors can redeem the FD amount at maturity or make a premature withdrawal at their convenience.
Once you have opened an FD, you can take a loan against your FD for up to 90% of the total investment amount.
You can still save money on taxes despite investing a minimum amount in a fixed deposit account.
Benefits of a Fixed Deposit
A fixed deposit offers several benefits to investors. Below are a few;
Easy and Quick Liquidity – In emergencies, a fixed deposit can be easily liquidated, and the funds can be used to address the situation.
Regular Income – With a non-cumulative fixed deposit, you can have your interest credited to your bank account monthly, quarterly, half-yearly or yearly.
Senior Citizen Benefits – Senior citizens can enjoy higher interest rates on a fixed deposit account.
Tax Benefits – You can get tax exemptions of up to Rs. 1.5 lakhs if you invest in a tax-saving fixed deposit.
Loans Against an FD – You can take up to 90% of a loan against an FD.
Stable Interest Rate – The interest rates in a fixed deposit does not fluctuate based on market conditions.
Open an FD with Shriram
With the prevailing economic and financial crisis, an FD with as low as Rs. 5000 with Shriram is a good choice. As Shriram offers one of the highest interest rates in India, you are assured of getting stable and good returns. Besides, Shriram is rated “IND AA+/Stable” by India Ratings & Research and “[ICRA]AA+ (Stable)” by ICRA. Hence, your fixed deposit with a minimum amount is safe with Shriram. Take a quick decision today and start an FD with Shriram now.
Key Highlights
Have you been thinking about investing in a Fixed Deposit (FD) lately and are clueless about the minimum investment amount?
You can finalise on the bank or NBFC that offers reasonable interest rates, find the minimum investment amount for the respective bank and open an FD with the minimum amount you have.
Leading NBFCs like Shriram allows investors to open a fixed deposit with a minimum investment of Rs. 5000 and even offer one of the highest interest rates in India for all fixed deposit investments.
Shriram is rated “IND AA+/Stable” by India Ratings & Research and “[ICRA]AA+ (Stable)” by ICRA, so your fixed deposit with a minimum amount is safe with Shriram.