Fixed Deposits (FDs), also known as Term Deposits, are a popular and stable investment option provided by banks and financial institutions, ideal for conservative investors seeking capital preservation and steady returns. Here are the key features of our Fixed Deposit services:
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Guaranteed Returns: FDs offer a fixed interest rate over a predetermined period, providing predictability in your investment returns.
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Safety: Considered low-risk investments, FDs are often protected by deposit insurance, ensuring the safety of your principal amount.
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Flexibility: Investors can choose from a range of tenures, typically from 7 days to 10 years, allowing for customized investment periods.
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Liquidity: Although premature withdrawals may incur penalties, FDs are generally easy to liquidate when needed.
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Regular Income Options: Interest can be paid out at regular intervals or reinvested to enhance returns over time.
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Loan Facility: Many banks allow loans against Fixed Deposits, providing access to funds without breaking the deposit.
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Tax Implications: While the interest earned is taxable, Tax Deduction at Source (TDS) rules apply, which may provide some tax relief.
FDs serve as a stable component in a diversified investment portfolio, balancing higher-risk investments. However, it’s important to note that returns from FDs may not always keep pace with inflation, potentially leading to erosion of purchasing power over time. Additionally, interest rates can fluctuate based on economic factors.
At S K Wealth Wisdom, we guide you in selecting the right Fixed Deposit options to align with your financial goals, ensuring a secure and reliable investment strategy.