Raksha Bandhan, one of the most unique festivals in the world, honors the love between a brother and a sister. Sisters tie Rakhi to their brothers, conveying their wishes for a prosperous life ahead, and in return, brothers offer gifts as a symbol of affection.
Like any other festival, gifting on this occasion can be a daunting task. With Raksha Bandhan just around the corner, you may already be grappling with gifting choices.
While the market is flooded with attractive Raksha Bandhan offers, it’s worth considering an unconventional gift that has stood the test of time: a Fixed Deposit.
Gifts that empower
While the allure of typical gifts like beauty hampers, spa days, chocolates, gift vouchers, or the latest smartphone is strong, consider a more lasting gesture. Instead of opting for gifts that provide immediate gratification, you can gift your sister a Fixed Deposit as a symbol of security. This gift will not only empower her and ensure her future but also lay the foundation for her financial independence.
Fixed Deposits as a thoughtful gift
Today, there are many investment instruments to choose from. So, you might wonder why you should choose Fixed Deposits over others. A bank Fixed Deposit is a secure investment with guaranteed returns, earning a higher interest rate than a Savings Bank Account.
FD interest rates have also gone up recently. Hence, this is a great time to gift your sister an FD by depositing a lump sum amount in her savings account and asking her to open an FD account with the sum. When the deposit matures, she can spend it on her long-term goals, such as higher education, travel, or starting a business. You can even gift a Tax-Saving Fixed Deposit, which comes with an additional tax deduction benefit of up to ₹1.5 lakhs under Section 80C of the Income Tax Act of 1960.
Choosing the right FD for your sister
Today, you can choose from a wide range of FDs. Here are some factors to consider before making a decision:
- Compare interest rates. Shortlist the ones offering the highest rates. At the same time, it is important to open a Fixed Deposit with a credible bank such as Axis Bank, which offers competitive interest rates. The process to open the account is also hassle-free.
- You can also explore Digital Fixed Deposits, which may offer higher interest rates, and the onboarding process is completely paperless.
- Check whether the Fixed Deposit has an overdraft feature, in case your sister needs to withdraw funds in the future before the end of the tenure. Typically, she should be allowed to take a loan of up to 85% of the deposit value.
- The 5-year Tax-Saving Fixed Deposit comes with tax-saving benefits. This is a great opportunity to help her optimise savings.
- If your sister is a senior citizen, opt for a Senior Citizen Fixed Deposit, which offers a slightly higher interest rate than a regular FD.
- If she needs to withdraw all funds and close the account, the premature withdrawal penalty should be low.
Benefits of using an FD Calculator
Now that you understand the benefits of gifting your sister a Fixed Deposit on Raksha Bandhan, you need to plan the investment. This process becomes extremely simple if you use an FD calculator to estimate the returns.
You essentially need to input three variables to plan for the best outcomes. These comprise the principal amount, the interest, and the tenure of the Fixed Deposit. You can play with various permutations and combinations to figure out the best possible outcome. Once done, you can proceed to open the Fixed Deposit.
Also Read: [5 reasons why Fixed Deposits are favored by the Indian middle class]
Conclusion
Providing your sister with financial gifts can play a substantial role in enhancing her financial well-being. Assisting her in selecting from a wide range of Fixed Deposits offered by Axis Bank, which are designed to suit the needs of various customer profiles, can be immensely beneficial.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
