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1) FD is safe investment option.

2) Return on FD is predefined irrespective of market fluctuations.

3) It gives higher rate of interest than a normal saving account.

4) It provides an investor the flexibility of breaking it prematurely (Subject to some penalties).

5) The interest given on FD is tax free up to a limit.

6) On maturity, it provides the flexibility of direct credit the amount of principal and interest, in customer's bank account.

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โˆ™ 2015-08-11 03:13:23
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โˆ™ 2008-12-11 11:42:24

Below are some advantages

1. Extremely Safe

2. Earns you a Decent Rate of returns

3. Guaranteed returns

4. You can pledge your FD and get loans at reduced rates

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Q: What are 5 advantages of fixed deposit?
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