IS FIXED DEPOSIT A LUCRATIVE INVESTMENT CHOICE????
By Dr.S.Johnsi Businesses as well as individuals learnt the value of money and the importance of savings during the pandemic like never before. The sudden announcement of lockdown, job loss and salary cuts led to personal financial crisis. Even after the lockdown many small businesses are closed and some have even slowed down. People have now realised the importance of savings as well as safe investments. Among the various alternatives, the oldest, safest and the most preferred investment choice is fixed deposit. Investors diversify their investments into fixed income and variable income investment sources. Fixed deposits fall into the first category and it provides a regular and fixed return to the investors. Investors prefers to invest in risk free investment avenues like fixed deposits since the interest rates offered on fixed deposits are higher compared to the savings account balances. Features of fixed deposit 1. It is a safe and preferred investment option. 2.