Investing is a credible way of saving, growing wealth and ensuring a regular income. Among the numerous options available, fixed deposits and mutual funds are popular investment tools. However, investors prefer the latter because of the higher returns it offers despite the market risks.
Aimed at relieving investors from clouds of doubts between risk and returns, the PNB Housing finance has designed the best FD schemes for investment that converges the factors of security with best interest rates.
Devised below are the reasons why an FD scheme at PNB Housing stands as a better choice than mutual funds.
Fixed deposits at PNB Housing Finance
Compared to mutual funds, fixed deposits exhibit better security on the principal amount by being insusceptible to market risks. Besides the existent low-risk benefits, fixed deposits at PNB Housing Finance have a highly graded recognition of safety with FAAA rating from the acclaimed body of CRISIL.
2. Interest Rates & Returns
Investors often turn to mutual funds because of the higher returns it offers. However, mutual funds are highly susceptible to market risks and hence returns fluctuate based on the performance of the stock market.
With the security of principal amount, low-risk benefits, market independence, and fixed interest rates, FDs pose as a safer tool of investment. The current FD rates in India ranges from 4% to 8%. With interest rates up to 8.40%, PNB Housing Finance offers the maximum interest and returns on an FD. The returns received from FD at PNB Housing Finance are higher than the profits earned from mutual funds during a favorable market condition.
3. No Cost and Hassle-free Investment
Investors who hold mutual funds will have to bear the mutual fund charges in the form of shareholder transaction costs, investment advisory fees, marketing, and distribution expenses. However, with FD, there are no such initiation costs.
Besides, PNB Housing Finance utilizes a single technology platform where all its functions are integrated, digitized and efficiently managed. Thus it ensures a hassle-free banking experience with the highest level of customer satisfaction.
4. Senior Citizen Benefits
At PNB Housing Finance, senior citizens are eligible for 0.25% higher interest than regular deposits.
5. Tenure Flexibility
For all its FD investors, PNB Housing offers tenure flexibility through cumulative and non-cumulative options. Based on the frequency of payouts required, investors can choose monthly, quarterly or annual payouts.
6. Premature Cancellation
During financial crunches, investors can choose to liquidate their FD investment, unlike mutual funds that come with lock-in periods.
However, on premature withdrawal, a penalty fee is charged.
All mutual funds are subject to short term and long term capital gains tax. As per the recent reforms in the Income Tax Act, no tax will be deducted from the source if the income earned from the FD saving account is not more than Rs. 50,000.
Combined with a high safety factor, flexibility, and best FD interest rates, the FD schemes at PNB Housing Finance ensure investors a good return synchronizing with their financial goals.