For a long time, bankers have always invested either in fixed deposit or postal deposit schemes, which usually comes with a high chance of unforeseeable risk. The safety and security of investment have always been prioritized over liquidity and interest from it. Even if the safety of investment is guaranteed in the form of a fixed deposit, it still wouldn’t promise a good return as compared to the market. Although fixed deposits have their appeal, they still cannot be compared to other forms of investments like ULIPs and PPF, which are tax-efficient and more alluring.

A large crowd of Indian middle-class prefer to make their investments in the form of fixed deposits due to sufficient privileges from market volatility and various other security contingents, as part of their investment policy. 

Fixed deposits are one of the best options which are offered by the banking and investment firms to the middle-wage Indians for their savings when taken into account concerns regarding the best investments during market volatility, liquidity affair, and other investment plans. They allow their investors to know about their returns prearranged and approves them to make their own choices from cumulative and non-cumulative investment options through Finserv MARKETS which are accessible online. 

In a cumulative fixed deposit, interests are combined quarterly or annually and then paid at the time of maturity whereas, in a non-cumulative fixed deposit, interests are paid periodically as per one’s choice. This consistency of periodical pay through non-cumulative fixed deposit can help cover daily expenses.

The advantages of investing in a fixed deposit include the active participation of even the most conservative of investors as it provides the safest of options, thereby influencing the people under distant and remote regions to come under a single roof of such investment plans.

Identifying the drivers

The increase in disposable incomes has provided people with the opportunity to invest their available funds and savings for a better and prosperous future. Furthermore, the amounts invested in fixed deposits would eventually increase with an increase in earning capability, enabling the financial firms and banks to lend much more, and also providing them with an additional opportunity to lend and provide capitals to underrepresented societies and communities. “Besides income and the interest rate, mobilization of deposits seems to be affected by substitution effects emanating from small savings,”- a bulletin highlighted by the Reserve Bank of India.

 Most of the changes made in investment preferences are due to alteration in financial policies accessible to investors—for example, online availability on portals like Finserv MARKETS.

Bank deposits considered income as it’s most crucial determinant both in the short and the long term, followed by interest rates. These attributes for investment plans provide both safety and interest, and therefore, major investors are attracted to them to diversify their financial assets.

This is one of the reasons why Finserv MARKETS propose competitive fixed deposit interest rates, which may start from around 8% and level up to 8.95%, and an additional advantage of higher interest over and above the existing rates up to 0.35%, especially for senior citizens.

Guaranteed high returns?

The Union Budget of India also made its plans in an attempt to promote investments in the country where it passed tax laws stating that the people with yearly income below INR 5 Lakh are exempted from tax. This has attracted a large crowd of people and driven them to make investments, which is most likely in the form of fixed deposits. With more investments, these providers would have more opportunities to lend to other ventures hence providing the corporate sector an upliftment.


There are both advantages and disadvantages to a fixed deposit. A fixed deposit does not fulfil the purpose and main aim of liquidity. But it certainly does allow its investors to take a loan against a fixed deposit whenever the need arises. It gives a long tenure of over 12 to 60 months as per one’s needs and aspirations. The online portal of Finserv MARKETS for comparison and better perspective adds on to the cherry on the cake, making investments more accepted, attracted, and popular with assured safety net capital features. 

Finserv MARKETS provides investors with various options to choose from and select the ones that fit their personal and financial needs. Every individual has their own aspirations and expectations which they plan to achieve to fulfil their life goals. Finserv MARKETS assists in doing so with simple steps. Simple and fast loan application processes, hassle-free claim-settlements, no-cost EMIs, 4 hours product delivery, are some of its excellent advantages along with Loans, Insurance, Investment, and an exclusive EMI store, all under one roof.