Sri Ram
Financial Solution

Why is Fixed Deposit Still a Popular Choice for Investors?

Fixed deposit is one of the most popular investment options in India. It is a type of investment where an individual can invest a fixed sum of money for a fixed period and earn a fixed rate of interest. Despite the availability of many other investment options, fixed deposit has remained a popular choice for investors. In this blog, we will discuss why fixed deposit is still a popular choice for investors.


Low Risk:

One of the biggest advantages of fixed deposit is its low-risk factor. Fixed deposits are considered to be one of the safest investment options as they are not affected by market fluctuations. This makes it a preferred choice for risk-averse investors who do not want to take any risks with their investments.


Guaranteed Returns:

Fixed deposit offers a guaranteed rate of return, which means that the investor knows exactly how much they will earn on their investment. This is beneficial for individuals who are looking for a steady source of income and want to avoid the uncertainties of the stock market.



Fixed deposits also offer high liquidity, which means that the investor can withdraw their funds at any time. However, premature withdrawal may attract a penalty or a lower interest rate.


Tax Benefits:

Fixed deposits also offer tax benefits under Section 80C of the Income Tax Act, 1961. An individual can claim a deduction of up to Rs 1.5 lakh by investing in tax-saving fixed deposits.


Easy to Manage:

Fixed deposits are easy to manage as they do not require any expertise or knowledge of the stock market. Individuals can open a fixed deposit account with their bank or financial institution and manage it easily.

Share the Post:

Related Posts