Fixed deposits (FDs) are a fixed investment tool that that pay a fixed interest rate for a specific term. They are a better investment option than regular saving accounts, offering higher FD interest rates by locking your deposit until the term is over. They are a particularly great investment option for women, for a variety of reasons. In fact, there are even specific FDs for women that are made to meet a woman’s varied requirements.

Both, banks and NBFCs offer FDs for women, with FD interest rates offered by the latter generally being on the higher side. For example, you can get FD interest rates of over 8% with NBFCs Fixed Deposit. This deposit also offers you flexible tenors ranging between 12 to 60 months to meet your liquidity needs and an online application process makes applying for the FD quite easy. You can even use an online FD calculator to calculate your returns.

So, why are FDs a great investment option for women? Well, there are several reasons, including:

1. Guaranteed returns

FDs offer guaranteed returns on your investment since the returns on your FD aren’t dependent on market performance. This make FDs a great investment option for women who want assured returns on their investment.
Moreover, since the amount you deposit is guaranteed to grow, you can use them to create an emergency corpus as well.

2. Flexible tenors

FDs often come with flexible tenors ranging between from a few days to years. You can choose the tenor of your choice to meet your monetary requirements. The money you put into the FD remains locked-in until the end of your chosen tenor.
Moreover, you can have multiple FDs at the same bank or NBFC at different tenors, depending on your needs. These features will appeal to women looking to save their money for later use.

3. More profits

FDs for women give better returns than savings accounts, thanks to the higher rates of interest. Moreover, the longer the tenor the higher are the returns, thanks to the power of compounding. Remember to compare the FD interest rates before choosing one for yourself though.

4. Flexible modes of interest payment

FDs allow you, to choose the frequency of your interest payment, along with the tenor. You can choose whether you want to be paid interest on a quarterly, half-yearly, or an annual basis.
This is great for women on a break from work for any reason, such as a maternity leave, since it can be used as an alternate source for regular income.

5. Higher interest rates for senior citizens

Women in the senior citizen category will find FDs a particularly great investment because FDs offer higher interest rates for senior citizens. For example, with the NBFCs Fixed Deposit, senior citizens get an FD interest rate higher than the normal rate by at least 0.35%.
Moreover, since FDs payout according to the customer’s choice, senior women may just find FDs a viable source of income in their golden years.

6. Loans are available against FDs

You can avail loans against your FDs. This is particularly useful during emergencies, as an alternative to breaking your FDs, which usually comes with a penalty. This feature is useful for single women/ mothers looking for some quick cash.