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deposit helps keep the economy stable

How Can FD help to keep the Indian Economy stable during volatility

deposit helps keep the economy stable

Why is a Fixed Deposit Stable Investment amidst the Volatility of the Indian Economy?

A Fixed Deposit (FD) is one of the most stable investment options. When there is market volatility, securing your savings by investing in a fixed deposit can be a good idea. The interest rates on an FD are predetermined and are not impacted by market fluctuations. Many Indians prefer an FD, and this helps keep the economy stable.

Everyone has their own opinion on the best investment instrument and will choose one based on their risk appetite and requirement. An FD is most popular among Indians because it offers attractive interest rates and assured returns. A fixed deposit is highly customisable and can be tailored to suit your investment goals.

A Shriram Fixed Deposit offers high-interest rates of up to 9.20%* p.a., including 0.50%* p.a. bonus interest for senior citizens and 0.10%* p.a. for women depositors. An investor can use the Shriram FD calculator to determine the interest they will get upon maturity. The flexible tenure feature can help you plan your financial goals efficiently.

Knowing more about a fixed deposit can help an investor understand how it can help to grow your finances securely despite market volatility. Let's explore the factors that make an FD one of the best investment instruments:

What makes an FD a Reliable Investment Option? 

A fixed deposit is considered to be one of the investment options that has been the most reliable, especially during times of economic instability. The financial crisis and market volatility make investors seek options that can keep their finances secure while yielding the best returns.

Unaffected by the Market:

Market fluctuations do not impact a fixed deposit, as the interest rate is set when the deposit is booked. Many market-linked investment options, like mutual funds, gold, real estate, etc., may yield higher interest rates; however, these investments are risky as they depend on market fluctuations.

The spread of negative news may also lead investors to exit a particular stock and disrupt the market. While earning more returns from market-linked investments can be beneficial, having a fixed deposit investment is always good.

Suitable for all Investors:

A fixed deposit is an investment that is easy to understand, making it accessible to everyone. You can start a fixed deposit with a small sum of Rs. 5000.

People with a high-risk appetite also tend to invest in an FD because it is an excellent addition to the investment portfolio. Senior citizens have the most to gain from a fixed deposit as they can avail of higher interest rates at some banks and Non-Banking Financial Companies (NBFCs). 

How can an FD Help you in Times of Emergency? 

The ability to break an FD at any time becomes beneficial in cases where you may need excess funds. However, premature withdrawal of an FD is highly discouraged as a penalty charge is levied on the interest earned. Here are ways in which you can use the funds in an FD without withdrawing the deposit:


An overdraft facility is the ability of the banks that allow you to withdraw funds from your account even when your balance is low. The amount borrowed has to be paid back with interest. A sweep-in deposit deposit uses the overdraft facility to make the account flexible. With a sweep-in deposit, you can earn more interest by adding your surplus funds to the deposit.

Check with your bank or NBFC if the sweep-in facility is available. You can also withdraw a portion of the deposit if needed. It requires the investor to have an FD with a minimum deposit of Rs. 25,000 and a savings account.

Loan Against FD:

A fixed deposit can be used as collateral to avail of a quick loan. This loan can be no more than 90% of the FD, and the tenure cannot exceed the limit set for the deposit. This loan does not require CIBIL score checks and has a fast fund disbursal.

Maximum Benefits with a Fixed Deposit

The high-interest rates of a fixed deposit can help you grow your finances faster. With a cumulative deposit, an investor can get more interest as the final amount is calculated according to the accumulated interest. Here are a couple of ways you can make the most of your FD:

Tax Benefits:

Shriram Fixed Deposit will allow you to get tax exemption on the interest amount up to Rs. 5,000. However, resident citizens & senior citizens whose total income is below Rs. 2,50,000 and Rs. 5,00,000 respectively can submit Form 15G/Form 15H and be exempted from paying tax.

One must also know that a tax-saving FD is a scheme with 5 years lock-in period, through which you get tax deductions under Section 80C of the Income Tax Act, 1961.

Financial Inclusion:

The stability and security features of a fixed deposit help strengthen the economy. This is because a significant part of the population of India trusts FD as an investment instrument. It is a tool to gain excess cash and inject it into the economy.

A fixed deposit is hassle-free and has a flexible tenure that allows everyone to invest according to the funds available and the goals they want to achieve. It has been a trusted tool of investment for generations.

An FD is the Best Choice for Investment

The market volatility does not impact a fixed deposit making it an ideal investment tool to help keep the Indian economy stable. A fixed deposit also has a high-interest rate and tax benefits, making it an attractive investment tool.

Invest in a Shriram Fixed Deposit now to get one of the best interest rates available in the market. Get an additional 0.25% interest on all renewals of matured Shriram fixed deposits. Visit the Shriram website to book your FD and start your investment journey with us.


1. Why do Indians prefer fixed deposits?

A fixed deposit is a secure investment tool that assures guaranteed returns. It is not impacted by market fluctuations making it stable and easy to understand.

2. Is a fixed deposit volatile?

No, a fixed deposit's interest rate is decided when opening the account. It remains the same till the day of maturity. You will receive the whole principal amount with the accumulated interest upon the completion of the tenure of your deposit.

3. Is FD a good investment in India?

A fixed deposit is one of the most trusted investment tools in India. As such, banks and NBFCs ensure that the features and benefits are most valuable to the investors.

Key Highlights:

  • A fixed deposit is a stable investment tool trusted by many investors.
  • Investing your money in a fixed deposit will ensure it is safe from market volatility.
  • The interest rates on an FD are predetermined and vary according to the tenure chosen.
  • An FD is easy to understand, making it an excellent investment for those beginning their investment journey.
Shriram completes 50 years of service!

To mark this momentous occasion, we have launched Shriram Jubilee Deposit - a 50-month investment scheme.
Invest now and earn up to 9.20%* p.a. (including 0.50%* p.a. for Senior Citizens and 0.10%* p.a. for Women)

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