How to Grow Wealth Through a Fixed Deposit

Learn how to grow your wealth securely with a Fixed Deposit. Discover strategies to maximise returns, enjoy guaranteed interest and achieve your financial goals.

Fixed Deposits are widely considered a reliable long-term investment solution in India, offered by Banks and financial institutions. When opening a fixed-term Deposit Account, a specific quantity of money must be deposited. The FD can be opened for as few as seven days or as many as ten years. With an FD you get the chance to achieve your financial goals in a safe and secure manner. Let us explore how to grow your money through an FD. 

What is A Fixed Deposit?

An FD offers a safe and secure investment option through a one-time deposit with a pre-determined rate of interest based on the tenure (period of deposit). The depositor is expected to hold the funds till the maturity period. However, depositors can withdraw the money bearing penal charges. An FD offers a rate of interest, higher than a conventional Savings Account.

For investors seeking low-risk investment choices, FDs offer stability and guaranteed returns. You may choose to receive your interest payouts monthly, quarterly or at maturity, depending on the FD type. FDs are suitable since they provide flexible length and payment options.  

How to Grow Your Money Through an FD?

Here are some tested ways by which you can grow your money through an FD:

• Selecting a High-Interest Rate Lender: To optimise your returns from FDs, choose a lender offering competitive interest rates. Over the term of the FD, higher interest rates equate to higher profits. To determine what best fits your financial objectives and investing goals, compare the rates being offered by various banks and financial institutions.
• Considering Multiple FDs: You may reduce risk and increase returns by investing in a range of FDs. Your investment amount can be split among many FDs with various terms and FD interest rates to help you build a balanced portfolio that generates consistent income streams. You may also manage your assets in a way that best suits your needs and financial objectives.
• Reinvesting your Earning: Reinvesting the interest you get from your FDs can help you accumulate wealth quickly. Consider adding the interest to your current FD principal or reinvesting it into another FD instead of withdrawing the money. Your investment may increase exponentially over time because of the compounding effect, which keeps the principal and accrued interest growing.
• Compound Your FD: If you choose a cumulative FD, the interest is compounded and paid out along with the principal amount at the completion of the FD duration. When comparing this strategy to non-cumulative FDs, which pay interest periodically, the cumulative FDs usually offer higher returns because of the effect of compounding. An FD is perfect for investors who want to increase their profits but still follow a strict budget and investment strategy.

Perks of Having an FD With ICICI Bank

Here are the various benefits of opening an FD with ICICI Bank:

• Protection & Promised Returns: Investment in an ICICI Bank Fixed Deposit is risk-free and provides steady returns regardless of market fluctuations. It provides comfort to investors seeking a stable approach to grow their investments.
• Flexible Tenure Options: For an ICICI Bank FD, you can choose a term that runs between 7 days and 10 years. This flexibility allows you to align the period of investment with your long-term or short-term financial goals.
• Partial and Early Withdrawal: ICICI Bank offers the ability to completely withdraw or withdraw a portion of your Fixed Deposit prior to its maturity.
• Extra Advantages for Senior Citizens: Seniors who have Fixed Deposits with ICICI Bank receive an additional 0.55% (applicable for a period of 15 months to 18 months) interest rate.
• Ability to avail Overdraft: ICICI Bank customers may obtain an Overdraft for up to 90% of the principal amount plus interest by using their Fixed Deposit as collateral.
• Choice of Automatic Renewal: Your ICICI Bank FD will be automatically renewed for the same term at maturity if you select auto-renewal. The current interest rate provided by ICICI Bank at the time of maturity will be applicable.

How to Open FDs With ICICI Bank?

There are online and offline modes through which to open ICICI Bank FDs. An FD can be opened with a minimum deposit of Rs 10,000. Here are the stepwise instructions to open an FD easily:

1. Steps to open FD through the ICICI Bank website

1. Log in to your Account on the Internet Banking platform
2. Go to the FD Form
3. Select the investment amount & tenure
4. Set your payout plan and your FD will be created.

2. Steps to open FD through the iMobile app

1. Log in to iMobile app using your credentials or PIN
2. On the ‘Transact’ tab, click on ‘Accounts & FD/RD’
3. Then click on ‘Fixed Deposit’ and choose ‘Open FD’
4. Next, enter the deposit amount
5. Select the ‘FD Type’
6. Select the preferred option from the ‘Interest Payout’ section
7. Next, choose the ‘Debit Account’ from which the investment amount will be debited. You can opt for ‘Auto Renewal’
8. Agree to the Terms and Conditions and click on ‘Submit’
9. Review the details and confirm to get your FD created.

3. Steps to open an Insta FD through iMobile app

1. Log in to iMobile app using your credentials or PIN
2. On the ‘Invest & Insure’ tab, click on ‘Insta FD’
3. You would be redirected to a pre-filled form where the amount would also be pre-filled
4. The pre-filled tenure would be the one offering the highest rate of interest
5. You can also customise your FD
6. Select ‘Invest Now’ and follow the instructions to create your Insta FD.

4. Steps to open FD at the ICICI Bank Branch

1. Visit any ICICI Bank Branch
2. Fill out the ICICI Bank FD application form available at the Branch
3. Provide necessary documents
4. Upon successful processing of your application, the Branch will issue an FD receipt.

Conclusion

A Fixed Deposit offers a great option for investing your money in a safe way. When it comes to an FD with ICICI Bank, you get several perks like attractive interest rates upon maturity of the FD after a certain period. The FD opening process is also simple through Internet Banking, iMobile app or at the Branch. It takes only a few minutes to create an FD online and your money is deposited safely to give you maximum returns.