Is FD a Sensible Investment Option in 2022?

In this age of uncertainty of returns, fixed deposits (FDs) offer an oasis of hope. FDs offer flexibility, stability, and decent returns. However, investors often complain that fixed deposits provide much lower returns than stocks, mutual funds, or even PPF or SCSS. Also, since the Reserve Bank of India has kept the REPO and Reverse REPO rates unchanged for some time now, the chances of an FD rate hike are unlikely. So, will it be a sensible decision to invest in fixed deposits in 2022? Look at the following paragraphs to make a practical and pragmatic decision.

Is FD a Sensible Investment Option in 2022?

The following sections enumerate the benefits of FD and provide a comparative estimate of PNB Housing fixed deposits against other investment instruments.


If flexibility is any consideration, stocks and mutual funds are the most flexible financial instruments. However, if you want assured returns plus flexibility, a fixed deposit, such as PNB Housing fixed depositis all you need. A fixed deposit lets you avoid the uncertainty of the capital markets and earn assured returns. When you open an FD in India, the financial institution informs you of the interest rate and maturity date. You will get your principal plus interest on the maturity date irrespective of the prevailing interest rate scenario or market conditions.

You can open two types of fixed deposit accounts in India – cumulative and non-cumulative. PNB Housing’s cumulative fixed deposit scheme provides you with the capital and interest amount on the maturity date, while a non-cumulative scheme pays you the interest amount at periodic intervals.

Hence, fixed deposits provide investors with exceptional flexibility plus assured returns.

Better Financial Planning and Quick Loan

The highest FD rates in India can fulfill your goals much faster than most other financial instruments. Although stocks and mutual funds generally provide higher returns than fixed deposits, the returns are not stable. Also, PPF and SCSS have a fixed lock-in period, meaning you cannot withdraw funds before maturity.

PNB Housing fixed deposit provides early withdrawal and loans against FD facilities. However, you may have to pay a minor fee to withdraw the amount before the maturity date. But, you can also avail of a loan against the FD of up to 75% of your deposit amount. The interest rate of a loan against FD is usually 2% higher than the highest FD rates in India. The loan against FD interest rate is much lower than the prevailing personal loan interest rates on a comparative scale.

Easy Investment

Gone are the days when you had to visit a financial institution and wait in the queue to invest your money. PNB Housing offers doorstep services to all fixed deposit customers. You can conveniently enter your details and investment amount and wait for an officer to pick up the documents and cheque from your doorstep.


With such remarkable benefits, it is only natural for investors to prefer an FD with the highest rates in India. Trust PNB Housing for your fixed deposit needs and grow your capital safely.

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