Top 5 reasons to open a Digital Fixed Deposit

Building a savings habit is as important as working hard to earn a paycheck. Today, there are a wide range of saving schemes available. Digital transformation of the banking sector has also simplified the process of saving. 

The Fixed Deposit continues to be an evergreen investment due to its many benefits. But Digital Fixed Deposits are gaining popularity due to the convenience they bring. Let us understand the benefits of these instruments, and how to plan for your investment.

Build savings

A Fixed Deposit is an important part of any balanced investment portfolio. It enables you as a consumer to grow wealth without market-linked risks. You can expect competitive Fixed Deposit interest rates and guaranteed returns. 

Unlike some long-term investments, Fixed Deposits come with high liquidity. You can execute a premature withdrawal when in need of urgent funds, and have instant access. 

Today, many banks have introduced Digital Fixed Deposits, which bring further convenience to the opening and maintenance of the FD account. 

Digital Fixed Deposit

Traditionally, you would need to visit a bank branch to open a Fixed Deposit. This process consumes time and effort. On the other hand, a Digital Fixed Deposit is an end-to-end digital product that can be opened online. This product allows a digital Know Your Customer (KYC) process, which saves you a trip to the bank branch. It also comes with several other advantages.   

Top 5 reasons to open a Digital FD 

By shifting to a digital product you can take advantage of five key benefits as follows: 

 

Open it in less than 7 minutes 

You can open a Digital Fixed Deposit quickly via online or mobile banking. The account opening process is simplified due to the video KYC feature. You can complete the account opening process in literally less than seven minutes. You can also receive online notifications making it a digital-first experience.

 

No savings account required 

Banks, typically, require you to have a Savings Bank Account before opening a Fixed Deposit. However, banks such as Axis Bank allow you to open a Digital Fixed Deposit without needing to open a Savings Account in the same bank. This innovation removes barriers during the account opening process. Axis Bank Savings Account holders can access this product within minutes.  

 

Competitive interest rates

Your Digital Fixed Deposit comes with attractive and highly competitive interest rates. Senior citizens enjoy the benefits of a slightly higher interest rate just as is the case with regular Fixed Deposits. You have the flexibility of choosing between seven days to 10 years of tenure, with varying interest rates as per your needs.  

Also Read: Open a Digital FD in minutes

Start investing with just ₹5000

You can open your Digital Fixed Deposit by investing as little as ₹5000. The principal amount is typically much higher when opening a Fixed Deposit at your bank branch. This is an attractive option, especially, if you are in the early stages of your career, or have limited access to funds.

Enjoy the same benefits as a Fixed Deposit 

You get to enjoy all the same perks of a regular Fixed Deposit. You have access to premature withdrawals in case you need to raise urgent funds. You can renew your account to continue earning returns on your deposit. You can also choose between a cumulative and non-cumulative scheme, as per your needs. The latter allows you to enjoy a monthly or quarterly income. 

Planning your digital investment 

The best way to plan your investment is to use a Fixed Deposit calculator. This is a free-to-use tool that accurately helps determine the right terms and conditions of your deposit. You can input the Fixed Deposit interest, cumulative or non-cumulative account, principal and interest rate. You can arrive at the right calculations as per your needs and access to funds. 

The takeaway

Today, you can open a Digital Fixed Deposit with Axis Bank and avail of perks like video KYC, competitive interest rates, guaranteed returns, relevant tenure, and a completely digital experience. You can do so without opening a Savings Bank Account at Axis Bank.

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.