Markets across the world have nose-dived in reaction to the raging Russia-Ukraine crisis. Indian stock investors lost over Rs 10 lakh crore of value – all in a single day as Russia announced its armed offensive.
To make things worse, this stock market crash comes at a time when the economy had just started recovering from the devastating impact of COVID-19 pandemic.
When portfolios turn red, this is the question on every retail investor’s mind:
How do I keep my investments secure?
We know market investments are risky. That’s why, we need a different basket for a different egg. As a thumb rule, you should allocate between 20% to 25% of your investment on safe, fixed-return instruments. The most popular fixed-income instrument is Fixed Deposit, or FD. FD gives you secure and guaranteed returns on your investments that are not dependent on market movements.
In addition to being low-risk, fixed deposits are also low-involvement and hassle-free. Select your fixed deposit after comparing FD interest rates and tenure, invest, and then let time work for you. You don’t have to monitor it regularly.
Other than my bank, what are the other FD options?
Most people open a fixed deposit, also called a term deposit, through their primary bank account. But guess what, you don’t have to just stick to your bank! Why lose out on others that may offer even better FD interest rates? There are many other options for FDs, like other banks where you may not have a savings or a salary account, or several NBFCs.
The smarter move would be to compare FDs across the range for minimum investment amount required, tenure of deposit, and fixed deposit interest rates before selecting the one that works best for you.
Do I have to open another bank account to invest in its FD?
Drumrolls ladies and gentlemen! This is where Kuvera simplifies your investment decisions. Kuvera offers a wide range of fixed deposit options from banks and highly-rated NBFCs. What’s even better is that you can open an FD online, without having to to open any new account or go through any hassle of paperwork.
Online FDs on Kuvera
Through just your primary bank account linked to Kuvera, you can select an FD of your choice. Explore the options, select based on a convenient tenure, investment amount and best FD interest rate. That’s it, you are done in a jiffy. Kuvera has the best online FDs, and we will keep adding more options to this.
FAQs
Can I make a premature withdrawal from my fixed deposit?
Yes, you can withdraw your fixed deposit before maturity. Some banks and NBFCs don’t have any lock-in period for FD, while others do – usually 3 months. However it is important to know that you may lose out on the FD interest that you may have earned.
What is the minimum deposit amount required to open an FD account through Kuvera?
FDs on Kuvera start from as low as ₹5000.
What is the maximum amount that can be invested in a FD account on Kuvera?
You can invest upto ₹5 crore in FD on Kuvera.
What is the maximum and minimum tenure of investment in FD?
FD tenures start from as low as 7 days and can go upto 10 years. On Kuvera, you’ll find FDs starting from 3 months tenure to 5 years. New products are added and updated regularly, so do check out online FDs on Kuvera to know exact tenures, minimum investment amounts and FD interest rates.
What are senior citizen fixed deposit interest rates on Kuvera?
Senior citizens (individuals who are 60 years or above) get the benefit of higher FD rates, anywhere from 0.25% – 0.75% extra rate of interest.
What is a cumulative fixed deposit?
Cumulative fixed deposits are FDs where the interest earned over each cycle is reinvested by adding to the principal till maturity. This increases the principal amount and helps you get higher returns, because of interest rates being applied over increasing principal amounts over successive cycles.
What is a non-cumulative fixed deposit?
With non-cumulative fixed deposit, the depositor gets periodic payouts of the interest accrued on the deposit. The investor gets the advantage of a regular income, which could be quarterly, half-yearly or annual. The principal amount remains the same throughout the tenure.
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Vidya Sagar
March 4, 2022 AT 21:45
I am interested to invest money as fixed deposits but when I tried to open it through KUVERA I get msg that it is not for NRIs. What are the other way for NRIs? The Banks are offering very less interest rates, less than the rate of inflation.