These 5 benefits are available on fixed deposits in the bank, know why you should invest in FD

New Delhi. Even after other options for savings and investment, Fixed Deposit is the most preferred among people. There are many reasons behind the most preferred option for savings apart from the interest earned on it. Apart from better interest, the benefit of insurance and income tax exemption is also available on FD. Some banks are even offering healthcare benefits to FD account holders. In such a situation, if you are taking the decision of investing only by looking at the interest received on FD, then it is not enough. Bank depositors should also keep several things in mind before opening an FD account.

Experts say that there is no dearth of options for investment in today’s time. Even after this, now the biggest challenge is which one is the right option for investment. Fixed deposit is not a new tool for investment. Looking at the volatility in the market, FD is the smart choice. The biggest advantage of fixed deposits is that the FD account can be opened with a very small amount and at a young age. Along with safety, it also gives better returns.

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Let us know what are the benefits available on bank fixed deposit investment.

>> Fixed Returns: Investing in FD inculcates the habit of saving from an early age. It offers safe and assured returns and is not volatile like any other asset.

>> Facility to open FD account sitting at home: Now fixed deposit account can be opened sitting at home. Facility to open FD account is available through internet banking and mobile banking. Thus it is no longer a long and elaborate process. This FD account can be opened in just a few minutes.

>> Insurance/Healthcare Benefits on FD: FDs are considered to be the most traditional and reliable savings option. To make it popular in today’s time, banks even provide free life insurance. For example, DCB Suraksha Fixed Deposit offers free life insurance cover equal to FD amount up to Rs 50 lakh. Healthcare benefits are also available on FD.

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>> Benefits of income tax exemption: Banks also offer tax saving FDs. It also gets the benefit of tax exemption under section 80C of the Income Tax Act, 1961.

>> Overdraft facility on bank FD: Some banks also provide overdraft facility on FDs. With this, in case of an emergency, funds can be obtained without breaking the FD.