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14-11-2022 14:08:45Out of all the financial investment schemes available, a fixed deposit (FD) and an insurance plan are the most popular products. A fixed deposit is available at banks, Non-Banking Financial Companies (NBFCs) and other financial institutions. Only registered insurance corporations provide life insurance. The difference between a fixed deposit and a life insurance scheme is that one is an investment while the other is a risk cover.
A fixed deposit is a great investment option to help you develop a healthy savings habit. With a Shriram Fixed Deposit, you get the option to earn more interest through a cumulative deposit or could get a regular interest payout with a non-cumulative deposit. Use Shriram FD calculator to check the interest rates you may get for the tenure of your choice.
A fixed deposit and life insurance are both investment options that the residents of India mostly choose. So then, which scheme should you invest in? Let's explore the differences between a fixed deposit and life insurance to understand the benefits and features.
A fixed deposit is an investment scheme which requires you to invest a lump sum of money for a predetermined tenure. The interest rate on this deposit will be decided before the account creation and will not change until maturity. Here are some of the benefits and features you should know about:
A lot of investors consider life insurance as an investment product. It is the type of insurance that offers financial stability to the assured person's family. It can also be used to achieve certain financial goals. Here are some of the benefits features and benefits you should keep in mind:
Feature | Fixed Deposit | Life insurance |
Tenure | 7 days to 10 years | Minimum of 10 years |
Returns | May/May not be available | Tax benefits are available |
Withdrawal | Premature withdrawal is possible | It depends on the type of insurance you need |
Investment | The minimum amount to start investing in a fixed deposit is Rs. 1000 and there is no limit on the maximum limit | The premium on a life insurance plan depends on your choice of policy |
A fixed deposit and a life insurance plan are useful and offer investments. While an FD helps you develop a healthy savings habit, an insurance plan enables you to provide financial security to deal with any emergency that can impact your life. When it comes to the ability to customise an investment, FD offers better benefits
You can use the flexible tenure feature to plan your investments more efficiently. An FD can also be used for both long and short-term investments. Apart from these features, you can also use an FD to take a loan and continue to earn interest on the deposit.
Invest in a Shriram Fixed deposit to get high-interest rates of up to 9.05%* p.a., including 0.50%* p.a. extra interest for senior citizens.
A fixed deposit is better than a life insurance plan for an investment scheme. A fixed deposit has more flexibility in terms of tenure, amount, and type of deposit to suit your requirement.
Yes, a Shriram Fixed Deposit offers assured returns, and the interest rate is not affected by market fluctuations.
The main difference between a fixed deposit and life insurance is that one is a savings scheme, and the other offers a risk cover.