How the Fixed Deposits of the Indian Middle-Class Help Boost Our Economy?

Are you looking to invest your surplus money? 

But you might be worried about the market risks. 

What is the way out? Well, fixed deposits can be your go-to option. It is the most preferred investment option among the Indian middle classes. 

Guess why? You can get a predetermined return without the fear of losing your hard-earned money.

These days, you can open a fixed deposit account from the comforts of your home. 

Moreover, you can also check your FD status online. There is no need to visit your bank. 

Isn’t that great?

Quick Statistics Related To Fixed Deposits

According to a survey conducted by the SEBI in 2019, about 90% of Indian families prefer fixed deposits over mutual funds. It shows the popularity of FDs among the people. 

Moreover, the statistics of the RBI show that Fixed Deposits formed 63.5% of the total deposits with the banks. It shows that the middle classes invest a huge proportion of their savings in FDs.

FDs Secure Your Uncertain Future

FDs are an excellent way to make your idle money work for you. It will earn you interests as it sits in the bank. It can help sustain yourself post retirement. 

Moreover, you can either take the interest payments periodically or on maturity. If you go for the former option, the interest will get compounded quarterly. 

This amount will help you sustain your regular expenses. While if you withdraw the money on maturity, you can use it for some fruitful purpose.

Fixed Deposits Lead To Financial Inclusion

If you are risk-conscious, you would never invest until you have guaranteed security from market risks. 

FDs give you that assurance. The money Indian middle classes invest in Fixed Deposits gets injected into 5he banking cycle. The banks would then lend out money from these deposits, thereby leading to financial inclusion. 

Loans will help people to build houses, get a higher education, and fulfil their other financial requirements. Thus, FDs help generate financial mobility.

Fixed Deposits Help Boost Businesses

When you invest in fixed deposits, you inject your surplus money into the banking economy. 

That means businesses will be able to borrow to meet all their financial requirements. 

When firms borrow more, they will be able to expand their operations. It will generate more employment and income opportunities. 

Thus, your fixed deposits will give a much-needed boost to the corporate sector.

It is always advised to compare the interest rates offered by different lending institutions. It will help you get the highest FD rates.

The Bottom Line

Fixed deposits are a good way to start investing.  Apart from securing your future, it also boosts the economy. 

PNB Housing offers attractive interest rates on fixed deposits. So, why are you waiting? Invest now and grow your wealth.

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