Is Fixed Deposit a Good Investment Option for Women?

First things first, whether we are considering a woman investor or any other investor, a fixed deposit is a feasible and lucrative investment vehicle for all! Yes, a fixed deposit for women is a profitable investment option as not only does it provide a higher rate of interest on the invested money, but it also offers assured returns on investment. It is also known as one of the safest options of investment.

Compared to the other sought-after good investment options such as mutual funds, equities, and stocks where ROI is not fixed, FDs offer a guaranteed ROI.

How is it possible in case of FDs?

It is possible because returns of an FD are unaffected by market fluctuations. This means that whether the market goes from bullish to bearish or vice versa, returns from a fixed deposit will remain constant. The investor will earn the interest income as per the rate decided by the financial institution and receive the same at the end of the maturity period. The same cannot be said for mutual funds and other related market securities that promise greater returns but involve higher risk.

You can always rely on a fixed deposit investment to see your money multiply over a specified tenor, without any hassles or market-related risks. FDs are provided by financial institutions like banks and Non-Banking Financial Companies (NBFCs). Both of them offer the same provisions and benefits, and here we are discussing some of them. :

  • You can expect to earn a higher rate of interest

A fixed deposit for women can offer you a relatively higher rate of interest when compared to keeping the same amount of money in a savings account of a bank. A savings account lets you only earn interest of the range of 4% whereas you can expect to gain around 7.85% on your FD investment with an NBFC. You can leverage the interest income as per your decided frequency. A woman investor can choose when to receive the interest- it could be on a monthly, quarterly, bi-annual or annual basis.

  • Your investments are always safe

There are no looming threats on your locked-in money in an FD scheme with a financial institution. Banks offer insurance of up to Rs.1 lakh if you do not get the interest payouts assured to you. However, like any other investment option, research before investing in a fixed deposit for women offered by NBFCs. Look at safety or stability ratings provided by credit rating agencies such as CRISIL and ICRA. The investor should look out for ratings like FAAA or MAAA that are indicative of an institution’s financial stability.

  • You will get assured returns after the maturity period

As mentioned earlier, your investment will fetch the promised interest income as per the specified rate, after the completion of the tenor. Compared to mutual funds, equities, and similar options, you can rest assured about reaping the returns from your FD investment once the tenor ends.

  • Dedicated senior citizen FD schemes offering a higher rate of interest

If you are a senior citizen (In India, you have to be 60+ to be a senior citizen) nothing could be as lucrative as an FD for women. Lenders offer the highest rates of interest of the range of 8.20% to the seniors. This income is tax-free. Hence, this can be a practical substitute of the monthly salary received when the interest is paid every month.

  • Minimum investment amount to begin with

Leading banks can let you open an FD account by investing an amount as low as Rs.10,000. This means that you do not need a large corpus to open your account with an NBFC.

  • Flexible tenor options for every need

Though banks offer an FD for as short a tenor as 7 days, it is good to keep the money invested for a longer period in order to gain more ROI and to beat inflation. NBFCs offer tenor options that range between 1 year and 5 years to help suit your needs and affordability.

  • A user-friendly online application system

You need not worry about bearing the hassles of traveling all the way to a branch of an NBFC to open an account for an FD. As of now, most leading institutions provide the convenience of applying for the same online, from the comfort of your home, at any time of the day or night for that matter. The forms are simple, easy to navigate and fill. This saves both your valuable time and effort.

  • Online account management

Online account access to your fixed deposit account can help you manage and keep track of your investment via the digital customer portal of the company anytime. You can log in anytime to find out the interest accrued at any point in time.

  • Use of Fixed Deposit Calculators

FD investors can use FD calculators to determine their interest earnings and maturity amount at the end of the tenor. They will only have to provide basic details related to the amount to be invested, interest payout frequency, investor type and the tenor.

The Bottom Line

As you just discovered from this post that, a feasible fixed deposit scheme is fit for women of all ages as it allows you to grow your invested sum in a safe manner! You also stand to benefit from the unique features offered by Non-Banking Financial Companies for their investors.

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