For years, fixed deposits have been considered the trusted source of investment that offers guaranteed returns and is risk-free. With the rise of online banking and digitalisation, opening an online account has become more convenient than ever. From seamless account opening to ease of investment management to data security, an online platform offers everything. But out of many options available in the market, how can you choose the right bank or platform and maximise your returns?

In this article, we’ll guide you through and learn about different factors to consider while choosing the right bank and common mistakes to avoid when selecting the best FD.

Why Invest in Fixed Deposits?

Fixed deposits are the most popular investment options that offer guaranteed returns, stability and risk-free investment. Here are the compelling reasons why this investment option has been a prime choice for many for decades:

The returns are guaranteed without considering market fluctuations.
An investor can choose a tenure depending on their financial situation.
Offers comparatively high rate returns as compared to general savings accounts.
It provides an opportunity to diversify your portfolio to maximise the returns.

Factors to Consider While Choosing the Right Bank for an Online FD

Choosing the right bank or provider is essential to maximise your returns, and here are the factors that will help you:

Interest Rate: One of the most important considerations when choosing the right provider is fixed deposit interest rates. While the rates vary across different banks, you must opt for the one that offers competitive rates. It is important to do your research and make the right choice.

Tenure Options: Assess your current financial situation and choose a tenure that best suits your needs. According to different users, FD offers a range of tenures, from months to years. After analysing your financial objectives, select the best tenure.

Premature Withdrawal: While FDs offer the flexibility to withdraw before maturity, ensure you check whether the provider charges any penalties for the same and what the process is before opening your account.

Online Banking Features: Make sure to analyse the whole interface of the online platform. It must be easy to navigate for a convenient application and seamless experience. Check for features like tracking or managing your investments, automatic renewal of accounts, and premature withdrawals.

Online Tools: Check if the platform has an FD calculator to help you estimate returns and make an informed decision.

Safety Features: An online platform must be trustworthy, and advanced security measures should be implemented to protect users’ essential financial and personal information.

Customer Service: A fixed deposit online platform should offer efficient, reliable, and responsive customer service to ensure you receive the right assistance at the right time.

Tax Benefits: Remember to explore the tax benefits available on different schemes, which can help you maximise your returns at less expense.

Common Mistakes to Avoid

Here are some of the common mistakes you must avoid while getting an FD:

Choosing lesser-known banks can be risky because they are less reliable. Make sure to prioritise safety over high returns.

Read the document carefully and learn about all the terms and conditions to ensure there are no hidden charges.

Check whether your account has been enabled for an automatic renewal of FD on maturity. This may sometimes not work in your favour.

Final Thoughts

Investing in fixed deposits has always been considered a smarter way to grow your wealth within a specific time frame without considering market fluctuations. However, you must choose a bank or the right provider that ensures seamless account opening and management.

Bajaj Finserv is a trusted platform for opening an FD account and offers high interest rates, flexible tenures, and secure transactions.

Prioritise your financial goals and consider the above factors before making the right choice and earning high returns.