Fixed Deposit (FD) vs Real Estate – Which One is For You
Fixed Deposits and Real Estate, Both are the most reliable forms of investment because of the safety and consistent returns they provide. Both of these have their own benefits.
Benefits of Fixed Deposits :
- Fixed and Guaranteed Returns: The interest rates you get for investing in fixed deposits are independent of the variations in the market. This assures fixed and guaranteed returns for your savings.
- Building Up Future Savings: Investing in fixed deposits is one of the best ways for building up your future savings. You can choose the plan for the time that suits your requirements.
- Flexible Investment Nature: One of the best things about fixed deposits is the flexible nature of the plans. You get many types of fixed deposit options like standard, cumulative, non-cumulative, corporate, etc depending on the nature of your savings and the time period is also very flexible.
- Tax-Saving Opportunities: There are tax-saving fixed deposits that provide you tax exemptions of up to 1.5 lakhs in a year depending on the amount you have invested.
- Income Generation Options: Investing wisely into FDs generates income. The interest you get on the deposits along with the tax deductions is nothing less than a secure and steady income. All you need is to invest smartly into multiple fixed deposits.
- The convenience of Opening a Fixed Deposit Account: The procedure of opening a fixed deposit account is very easy. All you need is identified and address proofs with the minimum required amount to apply for an FD.
- Loan Facilities: You can also apply for a loan and use the amount deposited for the FD as leverage and you will still earn the returns.
- No Additional Costs: There are no hidden or additional costs in the case of fixed deposits. You only need your savings and the scheme which suits you. This makes it very simple and safe for you.
Benefits of Investing in Real Estate :
- Tangible Asset: Real Estate is a tangible asset and it is one of the oldest and safest forms of investment. You can touch and feel your investment which gives satisfaction to many people. Investing in real estate offers great returns and provides many options.
- Hottest Preposition Right Now: Real estate is the hottest proposition right now because of the possibilities it provides. You can use your savings in real estate investment and get amazing returns. All you need is to choose the right property. It offers far greater returns than most of the other forms of investment.
- What is Your Take-Away? In a real estate investment, You can expect guaranteed returns and every good deal will make a good impression on you in the market. This helps you in getting more and better deals. The chances of growth in real estate are far better than the fixed deposits
Both investments have their own pros and cons. Real estate investments provide greater returns and more room for growth but are more complicated than investing in a fixed deposit. You should check your savings, time, and effort that you can put into the investment and choose the best option for you. Fixed Deposit vs Real Estate