Articles

Planning a Baby? Fixed deposits can Take Care of All your Finances

by Arwind Sharma Finance Advisor

The birth of a child in the family can be so far the happiest moment, especially for the parents. However, being a parent for the first time involves a lot of preparation. The preparation is not just limited to a physical or mental aspect, but moreover, the parent also needs to plan all the finance related to their child. Right from the birth of your child till his adulthood there are a lot of financial responsibilities that you as a parent have to handle. Since the cost of education and other commodities are increasing, to offer your child a secured and a bright future, it is essential that you pre-plan all the financial costs related to him.  

Now, this fiscal assumption and management at times can be hard to plan out. However, your financial planning should not just be limited to your savings account. Although, it is a good and the safest place to allocate your funds, it is surely not the place that can multiply your money. So in this case, why not try the investments? Yes! Investment at times can be a little intimidating. But not all investment plans possess the same. Some investment options like FDs are safe to invest in as well as gives higher returns.

What is Fixed Deposit?

Fixed deposits (FD) are considered as the easiest form of investment. However, the investment is the preferred one among many. So far, it is measured as the safest alternative to the stock market and mutual funds. Furthermore, the investment is categorized into two types: fixed deposits and recurring deposits. Being so, FD is a one-time investment option wherein you have to allocate all your funds at a single time. Whereas, a recurring deposit asks you to invest your funds regularly over a period. Furthermore, it is up to you which investment plan you stick with.


Talking about fixed deposits, the returns earned by it is higher in comparison to that of savings account. Being so, if you plan to invest in a Non-Banking Financial Company (NBFC), they offer you a little higher interest on FD than banks. However, the investment is bound with many schemes and features that can benefit you.

How can the Fixed Deposit be Beneficial?

  • Fixed Rate of Interest:

FD offers fixed interest rate throughout the investment period. Nothing like the high-risk investments, the interest offered by fixed deposit is not determined by the market conditions. However, the returns remain constant and don’t fluctuate over the time depending on the market conditions. Furthermore, this assures that the money you have invested is safe and you don’t end up in a loss.  

  • Online Assessment:

With good returns, the money investment also offers an online assessment; wherein, you can apply for the fixed deposit as well as manage it online. This enables you to check and manage your account balance and transactions with the help of your figure tip. Also, once you fill the form online, the financial institution will call you to pick up the documents and cheque.

  • Insurance:

It is rare to see an investment offering you with insurance. And fixed deposit does this exact rare thing. FD offers you an insurance of INR 1 lakh; this insurance safeguards your invested money. However, this assures you that your money is safe and is parked in the right place.  

  • Overdraft:

As you know, fixed deposit restricts its investors to withdraw cash during the time of fiscal emergency. However, in this situation, an overdraft facility can be helpful. You can withdraw up to 90% of the amount from your account. Moreover, this amount can help you fulfil your needs without breaking the FD account and paying penalty charges for doing so.

Moreover, the parenthood comes with a lot of responsibility and mastering those will of course take time. Therefore, if you are planning for a baby in future, it is now time to get ready with both mental and financial health for your baby’s forthcomings.   



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About Arwind Sharma Advanced   Finance Advisor

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Joined APSense since, October 9th, 2015, From Pune, India.

Created on Oct 10th 2017 05:11. Viewed 795 times.

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