Getting a retention bonus for all the hard work you have done throughout the year can be exciting. But once you get that coveted bonus cheque, the first question that comes to mind is how you can make the most out of this extra income.
A fixed deposit is an ideal option to invest and grow your money safely. They are easy to liquidate, so you can quickly access the funds in a financial emergency. And one of the best investments you can make is opening a fixed deposit with PNB.
Read on to know more about how a PNB fixed deposit is the right option for investing your bonus money.
Reasons To Invest In A Fixed Deposit
There are so many investment options in the market, so why should you opt for a fixed deposit? Many people prefer FDs over other investments because they are relatively risk-free and, hence, a safe way to keep your money secured for the future.
If you are still confused if an FD is a right choice for your retention bonus investment, here are some reasons to invest in fixed deposits:
FDs are considered a risk-free investment option primarily because they always guarantee you will get your investment back. Market fluctuations do not affect a fixed deposit, so your principal will always remain there for you if you need to withdraw it.
Even before you invest in an FD, you can get an idea of how much interest you can get for your deposit tenure. Each scheme has a rate that is determined based on tenure.
For example, an FD for a term of 2 to 3 years usually has the highest interest. When you have this information available to you even before investing, you can easily decide which tenure and interest best serve your purpose.
Attractive Interest Rates
In an FD scheme, you can get an interest of up to 6% and even more for senior citizens. The fixed deposit interest rates are designed based on the tenure of the deposit, and each scheme has an optimum tenure where you can get the most interest rate for that scheme.
If you invest in a PNB fixed deposit, you can get an interest of Rs. 6.02% for an investment of 5 years.
The process of opening a fixed deposit is hassle-free and requires only minimal documentation.
Customized Investment Options
In an FD, you can choose between fixed or compound interest schemes.
A fixed interest scheme means you will get interested along with the principal investment upon maturity. In a compound interest scheme, you can get interest at regular intervals while you get the principal at maturity.
Things To Consider Before Investing In An FD Scheme
The fixed deposit interest rates should be your primary consideration when looking through different FD schemes. After all, the best way to grow your money over time is to get a competitive interest on it.
Here are some other things to consider when investing in an FD:
When investing in an FD, look for schemes with higher interest rates. Since FDs do not carry market risk, your interest amount is locked away when you start your fixed deposit.
So, make sure you compare the interest rates in different schemes and for different tenures before picking your FD.
A fixed deposit is easy to liquidate; however, some high-return schemes may have a lock-in period during which you cannot withdraw your fixed deposit. General schemes have a lock-in period of around 1 to 2 years.
A tax-saving FD usually has a lock-in of 5 years.
When you’re investing your retention bonus, you want your money to grow but also be safe from market volatility.
FDs are low-risk and the best choice for safe investing, but you should still check the credit rating of the financial institution where you want to start your FD so you can be assured of getting your investment back.
Here are some reasons why PNB Fixed Deposits is an intelligent choice to invest your retention bonus in:
- PNB Housing Finance’s fixed deposits have a AA/Stable by CARE and FAA+/Negative rating by CRISIL, thus ensuring a high-security level
- PNB Housing Finance offers 0.25% higher interest rates for senior citizens
- Investors can choose premature withdrawal at any point three months after the deposit date
- PNB offers doorstep service where agents meet the clients and pick up the application from their home or office
When considering investing in FDs, fixed deposits by PNB are among the most rated in the market simply because of their competitive interest rates, hassle-fee investment, and liquidation options. And when you’re investing your retention bonus in an FD, always make sure to research all schemes to get the best returns.