Looking to invest Rs. 5 lakhs in Fixed Deposit? Wise choice! Read on to know more about the monthly rate of interest on this investment in banks and other financial institutions.
Let us begin by understanding why FDs are a popular choice for investment among several investors in India:
- Let us begin by understanding why FDs are a popular choice for investment among several investors in India:
- FDs typically offer higher interest rates than conventional savings or current accounts, which is another advantage they have over other financial products.
- FD accounts assure a guaranteed and regular income source to the investor compared to any other investment tool.
- FDs provide fixed and regular returns to investors, which can protect them from sudden market fluctuations caused by changes in the economy.
- Banks provide flexibility in the investment tenure of FDs, allowing investors to choose between 7 days and 10 years based on their specific needs.
Now that we know that FDs are a risk-free investment tool, it is evident that for an investor, depositing any amount of money into a fixed deposit account should not be a big deal. Moreover, considering that FDs are a liquid form of investment, it makes even more sense to deposit carefree in them, knowing that you can break them as and when you need money for your needs.
We will first discuss the interest rate per month for a 5 lakh FD investment in banks.
Rate of Interest
Now let us take a quick look at the rate of interest offered by a number of NBFCs in India
Rate of Interest
PNB Housing Finance
We saw above the rates of interest offered per month to an investor for a 5 lakh amount deposit in an FD account in both banks as well as NBFCs. Let us now understand why it is a good idea to consider investing an amount as big as Rs. 5 lakhs in a fixed deposit in the first place.