Bank fixed deposit (FD) is one of the most favoured investment options among investors with a low-risk appetite. The biggest advantage to choose a bank fixed deposit investment is its assured return feature. It proves to be a good investment option when the market becomes highly volatile.

While choosing bank fixed deposits (FDs) Interest rates should not be the only criteria for asset allocation. Banks are providing various other benefits for FD investors. Now at Income Control, we decided to share 5 benefits of bank fixed deposits (FDs) with our viewers.

1. Overdraft facility: A bank customer is eligible for overdraft facility against its bank FD. This feature of the bank FD helps investor raise fund during financial emergency.

2. Insurance: These days, various banks are offering value-added bank FDs. These value-added bank fixed deposits are offering free insurance to the bank FD investors.

3. Assured return benefit: As mentioned earlier, bank fixed deposit returns don’t fluctuate like many asset class. It helps an investor develop habit of investment at early age as one can invest in bank FD with small amount for smaller time-frame like 15 days to 3 month as well.

4. Income tax benefit: Indian banks offer tax-saving bank fixed deposits that helps an investor claim tax exemption under Section 80C of the Income Tax Act, 1961.

5. Ease of handling bank FD: In the era of internet banking, one can open or close bank FD by devoting few minutes on the computer or on the mobile phone. There is no more required lengthy banking process of visiting the bank branch and standing in cue for hours to open bank FD or deposit in bank FD.