Why you should invest in Fixed Deposits (FD) for a long term | Benefits & Features

A long-term Fixed Deposit (FD) is an investment option for those looking to secure their money and earn assured returns over 5 to 10 years. Such FDs offer a fixed interest rate, which means that earnings remain stable throughout the chosen tenure, unaffected by market changes. It is best suited for individuals looking to grow their money steadily over time.

Long-term FDs can be used for achieving future financial goals, like saving for a child’s higher education / marriage or one’s retirement. You can choose to receive the interest on a monthly, quarterly or yearly basis or you can let it accumulate and receive it in one go on maturity. It’s a reliable way to create wealth slowly and safely.

Key Features of a long-term FD

1. Minimum Deposit Amount

A minimum deposit of ₹ 10,000 is required to open a Fixed Deposit with ICICI Bank. Thanks to its low entry cost, many people can start saving and growing their wealth without needing a sizeable upfront investment.

2. Flexible Options for Repayment

Fixed Deposits offer flexible payout options. You can collect your interest earnings as a lump sum at the end of the FD term or at regular intervals, i.e., monthly or quarterly. Thanks to this flexibility, you can match your FDs to your financial objectives and needs.

3. Higher Interest Rates for Senior Citizens

FD interest rates for senior citizens can be up to 0.50% higher than standard rates. With this additional interest, they can maximise their savings and get better returns on their investment.

4. Auto-Renewal Feature

You have the option to have your FD automatically renewed on maturity. By enabling the auto-renewal feature, your principal and interest are automatically reinvested into a new Fixed Deposit at the prevailing interest rate, which ensures that your money will grow consistently.

5. Nomination Available

You can designate nominees for your Fixed Deposits. This gives you peace of mind and financial security by ensuring that the final amount is smoothly transferred to your designated nominee in the unfortunate event of your demise.

Benefits of choosing a long-term FD

Security Against Changes in the Market

Fixed Deposits are known for their steadiness because they are unaffected by market changes. Investing in Fixed Deposits is a safe way to protect your savings from market fluctuations.

Savings for Long-term Objectives

Long-term FDs, typically between 12 months & 10 years, are suitable for goals like buying a new home or planning for retirement. The secured returns and predictable growth make FDs a reliable choice for building up savings over time.

Assured Returns

Investing in FDs ensures assured returns, which are often higher than those from regular Savings Accounts. This makes FDs attractive for investors seeking steady income and capital preservation.

Competitive Interest Rates

ICICI Bank offers competitive interest rates on Fixed Deposits. Use the FD calculator to estimate returns instantly and plan your investments smartly for steady and secure growth.

Use FDs as Security for Loans

You can avail of an Overdraft by using FDs as collateral. This gives you access to funds without liquidating your investments.

Benefits of Tax Savings

Under Section 80C of the Income Tax Act, investing in a 5-year Tax Saving Fixed Deposit offers deduction from your taxable income.

Emergency Withdrawal Option

FDs offer emergency or premature withdrawals, subject to penalties and lower interest rates. This option offers liquidity during emergencies where funds are needed.

Who can open a long-term FD?

How to open a long-term FD (12 months to 10 years)?

If you are an existing ICICI Bank customer, you can open an FD in minutes through Internet Banking or the iMobile app.

Conclusion

An FD is an ideal investment strategy for long-term goals. With FDs, you can deposit a lump sum amount with the bank and earn interest till the FD matures.

ICICI Bank offers attractive interest rates on FD with a range of tenure options. Open an FD with ICICI Bank today and meet your financial goals with confidence. 

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