Fixed deposits provide stability and predictable income for investors

Fixed deposits (FDs) are being highlighted as a tool for financial stability and predictable income amidst market volatility. Saurabh Jain, CEO and co-founder of the Bangalore-based fintech platform Stable Money, notes that FDs provide investors with greater control and the ability to structure savings for both short-term needs and long-term goals.

For investors seeking regular monthly income, such as senior citizens, non-cumulative FDs allow interest to be credited to a bank account at fixed intervals rather than being reinvested. For example, to generate a monthly income of Rs 10,000 at an 8% interest rate, an investment of approximately Rs 15 lakh would be required. Investors are advised to consider interest rates, tenures, and tax implications, such as TDS, before committing funds.