fixed deposit
Investing today has become easier than ever. Now you do not need to stand in long queues at the bank or go to different places to open a fixed deposit. Zerodha has added a new feature to its Zerodha Coin platform, with the help of which users can now invest directly in FD as well. Its objective is to provide shares, mutual funds and safe savings options all at one place.
The special thing about this facility is that now investors can invest their savings in fixed deposits in just a few clicks. Earlier, for FD, a separate process had to be done by the bank. At the same time, now this work will be done through mobile app only. This also saves time and managing investments also becomes easier.
These three banks are included
Initially, three small finance banks have been included under this feature. These include Suryoday Small Finance Bank, Utkarsh Small Finance Bank and Unity Small Finance Bank. These banks are giving investors the option of paying annual interest up to about 8%, which is considered quite attractive compared to traditional savings options.
The tenure of FD on this platform has also been kept quite flexible. Investors can choose the tenure from just 7 days to 60 months. If someone needs money in between, he can break the FD after the stipulated time. However, some penalty may be imposed for this. This information is clearly shown to the user even before starting the investment, due to which transparency is maintained.
Insurance will be available on FD
From security point of view, this investment option is considered quite reliable. Insurance protection is available on the FD of these banks for an amount up to Rs 5 lakh, which comes under Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that in case of any unexpected situation, the investors’ money remains safe to a certain extent.
The method of investing has also been kept very simple. The user simply has to login to the Coin app, then go to the FD section and select the bank of his choice, interest rate and time period. After this the investment process can be completed by depositing the amount. The entire process is digital, so there is no need for paperwork. This feature is quite useful for those who want safe and stable returns. Especially for those investors who avoid risk, this can become a good option because now they do not need to go to different banks for FD.
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