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The Co-Relation between Fixed Deposits and Growth of our Economy

FDs Specify The Returns, Guaranteeing An Income To The Investor Right At The Time Of Investing.

By : Ritika Shree | Updated on: 27 Sep 2021, 06:06:07 PM
Fixed Deposits and Growth of our Economy

Fixed Deposits and Growth of our Economy (Photo Credit: News Nation)


  • FDs play a role in the growth of the economy
  • post-pandemic times have witnessed a pulverization of the Indian economy
  • banks and other financial service companies also increase their interest rates

New Delhi:

Fixed Deposits (FDs) have long since been deemed a reliable and trustworthy form of investment for small and medium retail investors. As compared to stocks and other market-linked instruments, FDs are a risk-free way of ensuring that you receive a guaranteed sum at maturity. In addition to clubbing stability with fairly attractive returns, FDs also play a role in the growth of the economy. Here is a detailed elucidation of how FDs maintain and contribute to economic growth and stability:

Stability during Economic Turmoil

While most market-related investment opportunities come with claims of high returns, they are inevitably subject to the market volatilities. However, FDs offer financial protection, stability and growth to every investor as these are safe from market volatilities, thereby ensuring a measure of stability for the economy in general.

Assured Returns

FDs specify the returns, guaranteeing an income to the investor right at the time of investing. The investment option is ideal for people between 30-50 years as well as senior citizens who opt for low-risk options. Comprising a significant section of the Indian population, senior citizens can safely depend on FDs during their post-retirement days. Accordingly, FDs offered by banks and financial companies frequently offer additional interest rates to senior citizens over and above the regular rates. FDs are also a good option for investors who wish to diversify their investment plans and portfolio while earning a stable income.

FD Interest Rates & the Economy

The post-pandemic times have witnessed a pulverization of the Indian economy. Characterized by volatile equity markets and unpredictable real estate, this is a good time to set aside your corpus in FDs. Additionally, it must be noted that an increase in Fixed Deposit interest rates is typically driven by factors such as declining currency value, an increase in loan to deposit ratio. When central bank rates rise, banks and other financial service companies also increase their interest rates. This shows that for an investor, this is an optimal time to ensure the safety of their capital by locking in on a fixed deposit offering the best interest rate.

Last Few Words

If you are planning to invest in FDs, visit IndusInd Bank. You can gain access to multiple fixed deposit options, based on your investment preferences. Investing in an FD with IndusInd Bank comes with multiple benefits such as high interest rates, flexible tenure – so you can enjoy the benefits of changing interest rates across a period of time – auto-renewal option and tax saver feature. Additionally, with instant hassle-free booking, you can open an FD account online at IndusInd Bank in a jiffy anywhere, anytime. IndusInd Bank also offers a higher rate of interest on fixed deposit as compared to other banks. However, make sure you use the IndusInd Bank FD interest calculator to get an idea about the the returns on your investment based on the tenure, amount, and prevailing interest rate. Just choose from tenure that suits you and watch your money grow with assured returns.

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First Published : 24 Sep 2021, 08:43:04 PM