Diversifying Investment through Fixed Deposit Accounts with Bharat Financial Inclusion Limited

Published on: Dec 15, 2023

In today’s financial landscape, saving is paramount. While earning a stable income is crucial, true financial growth is achieved by smartly allocating funds across various assets such as mutual funds, gold, and fixed deposit accounts.

At Bharat Financial Inclusion Limited (BFIL), we understand the importance of financial education and awareness in empowering individuals to explore diverse investment opportunities. For those from low-income backgrounds, diversifying savings across different financial instruments is an effective risk management strategy, helping to mitigate potential losses.

One practical approach to gradually increasing savings is through fixed deposit (FD) investments. FDs foster a disciplined saving habit while offering a lower-risk investment option.

BFIL is committed to guiding individuals towards financial security and growth through informed investment choices. By promoting financial literacy and encouraging strategic saving practices, we aim to support the financial well-being of all our clients.


Understanding Fixed Deposits

A fixed deposit (FD) is a financial instrument offered by BFIL in collaboration with IndusInd Bank, allowing our customers to invest a lump sum for a predetermined period at a fixed interest rate. Depending on the tenure, the maturity amount is either paid at the end of the term or interest is periodically credited into the customer’s account. FDs are favored for their safety, stability, and low risk, while helping individuals inculcate the habit of saving.

BFIL’s extensive rural branch network, covering approximately 137,000 villages, provides individuals with the opportunity to secure their funds through FDs. Our FDs help customers save feasible amounts, typically ranging from INR 10,000 and above, in their IndusInd Bank accounts.

Key Considerations:

Before opting for an FD with BFIL, several factors merit consideration

  1. Interest Rate: While FDs typically offer stable interest rates, prevailing market conditions may influence returns. It’s essential to assess the overall returns based on the tenure.
  2. Return Value: Although FDs offer low risk returns, the yield may be lower compared to other investment avenues. However, in rural areas, stability often outweighs the appeal of higher- risk options.
  3. Tax Implications: FDs are taxable, and we inform our customers about the tax implications on the interest earned from FDs so that they can plan accordingly.

Advantages of Fixed Deposits

  1. Diversification and Fixed Deposits: Incorporating FDs into an investment portfolio can enhance diversification and mitigate risk.
  2. Stability and security: FDs preserve the principal amount while providing a predictable interest rate, giving more stability.
  3. Steady Income: FDs serve as a reliable source of additional income through interest earnings.
  4. Risk Mitigation: FDs offer protection against market volatility, particularly when compared to equity investments.
  5. Accessibility: BFIL’s FDs are accessible to individuals across rural and semi-urban remote locations, offering flexibility in terms of investment amount and tenure.
  6. Liquidity: FDs provide liquidity, allowing customers to readily access funds in case of emergencies.

We encourage a balanced approach to investment management, offering a range of services from IndusInd Bank to promote financial freedom. The stable nature of FDs makes them suitable for individuals across all socio-economic strata, facilitating wealth accumulation and returns. Informed decision-making is vital in effectively allocating funds for optimal outcomes.