5 Reasons to Invest in the Stable PNB Housing Fixed Deposit
Fixed deposits are one of the most popular investment instruments among Indian investors. Nevertheless, many don’t consider FDs growth-oriented and use them only to balance the risk exposure of their portfolios. However, given the current market scenario, you should consider investing in PNB Housing Finance fixed deposit schemes that offer the best fixed deposit rates in India at 8.25% per annum for growth as well. Here are the key reasons why:
The lower interest rate of small saving schemes
The Reserve Bank of India has revised down the interest rates on various small saving schemes over the last few quarters. They are not expected to be revised upwards in the foreseeable future. Interests on both PPF and NSC are now at a low of 7.9%, interest rates on Sukanya Samriddhi Scheme and Senior Citizens Saving Scheme are also expected to be revised downwards. In such a scenario, the stable interest rate offered by PNB Housing Finance fixed deposit is a great option available to you.
Declining repo rate
The RBI had lowered the repo rate thrice last year. While the downward revision has been stopped, for now, the monetary policy is still looking to be more accommodative. The lower repo rate is expected to bring down the lending rate in the country, and thus limit the interest that can be offered on deposits. Therefore, you should lock into the higher interest rate currently being offered on long-term PNB Housing Finance FDs. They guarantee the best fixed deposit rate of 8.25% interest per annum even if the interest rate in the economy falls further.
Exit load on mutual funds
Liquid funds have been a popular tool to park the money for the short-term as they allow for a quick withdrawal. But with SEBI introducing a graded exit load on early exits from liquid MF schemes, this has become less attractive an option. It may be better to park your excess money in fixed deposits instead. While you can liquidate your fixed deposits whenever you like at a nominal interest rate penalty, you can also take a loan against your PNB Housing Finance Fixed Deposit to meet your immediate cash requirements without having to break the fixed deposit. You can also create a ladder of FDs or choose to invest in a non-cumulative FD to meet your liquidity requirements.
A secure investment
With PNB Housing’s fixed deposits, you can rest assured that your capital is safe and carries a very low credit risk as indicated by the FAAA/Negative rating given by CRISIL. Further, you need not worry about tax being deducted on the interest paid for up to ₹10,000 in returns.
Nomination facility is available on all PNB Housing fixed deposits as directed by the guidelines provided by the National Housing Bank. In the case of a depositor’s unfortunate demise, the nominee gets both the principal and the accrued interest.
Given the current market conditions, capital preservation must be as important a goal as generating a healthy return on investment. These dual needs can be met by investing in the PNB Housing Finance FD scheme now!