Aditya Birla Sun Life Insurance Company Limited
Choosing an investment option for your portfolio can be quite challenging. Not only do you have to decide the kind of investment scheme that you need to put your money in, but you also need to be aware of the different sub-categories within that type of investment.
Today, nearly every investment category has different sub-types and variants. Take equity stocks, for instance. There are dividend-paying stocks, large cap, mid cap and small cap stocks, and even value and growth stocks. In life insurance, which is another essential financial investment, you have different types like term plans, savings plans, Unit Linked Insurance Plans (ULIPs) and annuity plans.,
Why, even term deposits come with their own different sub-categories! Wondering what term deposits are, and what variants they are offered in? Let's decode these details.
Based on what happens to the interest earned and other exclusive benefits and features, we have the following types of FDs or term deposits.
Best suited for:
Anyone who has a lump sum amount ready to be invested in a safe investment option, and is looking for guaranteed1 interest thereon.
Here are some of the common features of a tax-saving term deposit.
Best suited for:
Anyone who has a lump sum amount to invest, and is also looking to save tax in the process.
Here are some of the common features of a senior citizen fixed deposit.
Best suited for:
Senior citizens who want to earn guaranteed1 interest on their lump sum investment.
Here are some of the common features of a cumulative fixed deposit.
Best suited for:
Anyone who has a lump sum amount and wants to earn guaranteed1 compound interest on it, without the need for regular income payouts.
Here are some of the common features of a non-cumulative fixed deposit.
Best suited for:
Anyone who has a lump sum amount wants to earn guaranteed1 income on a regular basis by investing that sum.
Here are some of the common features of a sweep-in fixed deposit.
Best suited for:
Anyone who has a lump sum amount and wants to earn higher interest on it, but does not want to lock the amount in for the long term.
Given that there are several types of term deposits, how do you figure out which one is the best option for you? Here are some pointers that can help.
You may not be eligible for all kinds of term deposits. For instance, if you are a 35-year-old resident of India, that automatically rules out senior citizen FDs and NRI FDs. So, check out the types of term deposits you are eligible for to narrow down your options.
The goal of investing in a fixed deposit is to protect your capital and simultaneously maximise your interest. So, compare interest rates from different banks and shortlist the ones that offer competitive rates.
Decide whether you want to reinvest your interest or receive it as regular payouts. This will help you choose between cumulative and non-cumulative FDs. If you do not want regular payouts, you can consider options like cumulative FDs or tax-saving FDs too.
Look for a bank that offers a simple and easy account opening process. You don't want to be weighed down by tedious paperwork and application procedures. Also, ensure that your banking partner has a robust customer support system.
See how a seemingly one-dimensional investment option like a term deposit can give you so much variety? Each kind of deposit caters to a different kind of investor. So, understand your options and pick the kind of fixed deposit that best suits your needs. This way, you can ensure that your returns are optimised.
If you are still unsure, or if you are looking for something more, a life insurance plan like the ABSLI Fixed Maturity Plan may be just what you need. It gives you everything that a term deposit does – right from guaranteed returns up to 6.55%^ and single premium investments starting from just Rs. 12,000. In addition to this, you also get the benefit of a life cover, so you can rest assured that even in your absence, your family will be financially secure.
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Get immediate income payout after 1 day of policy issuance^
Guaranteed# Income
Life Cover across policy term
Lumpsum Benefit at policy maturity.
Get:
₹33.74 lakhs~
Pay:
₹10K/month for 10 years
Guaranteed returns after a month¹
1 Provided all due premiums are paid.
2 Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details.
ABSLI Nishchit Aayush is a non-linked non-participating individual savings life insurance plan (UIN No 109N137V12)
^ - Provided 0 year deferment & Annually in Advance payout frequency is chosen at the time of inception of the policy. Annually in Advance payout frequency is only available in "Annual" premium payment mode.
~ Male- 25 yrs invests in ABSLI Nishchit Aayush Plan with Level Income + Lumpsum Benefit. He chooses premium payment term 10 yrs , policy term 40 years, benefit option -Long Term Income, Sum Assured 7 times of Annualized Premium and Deferment Period 0 years. Annualized Premium is ₹1,20,000 (Exclusive of GST.). Annual Income of ₹ 42,360 (42,360*40= 16,94,400) + Maturity Benefit (₹16,80,000)= ₹ 33,74,400
#Provided all due premiums are paid
ADV/7/22-23/692
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