Fixed Deposit (FD) interest rate is not the only criteria for FD calculation. There are some other benefits like FD with insurance and income tax benefits that adds more value to a bank depositor's money. Some banks operating in India are offering healthcare benefits to its FD account holders. So, looking at FD interest rates while using an FD calculator is not enough. There are some more advantages that a bank depositor needs to look at while opening a bank FD account.

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Speaking on the important FD benefits, Praveen Kutty, Head, Retail SME Banking at DCB Bank said, "Today, there is no dearth of asset classes to invest, however the greater challenge is to choose the right investment avenue. Fixed Deposits are not a new tool, however they have proved to be a smart choice especially in today’s volatile market. The advantages of Fixed Deposits is that it can be opened at a very small amount or at a young age, which offers steady returns with safety."

Asked about the top 5 benefits of a Fixed Deposit investment, Kutty of DCB Bank listed out the following:

1] Assured Return: Fixed deposit investment inculcates a habit to save from a young age. It provides the security of assured stable returns and does not fluctuate like any other asset classes. 

2] No need to visit the bank for FD account transaction: Fixed Deposits nowadays can be made anytime, from anywhere. One can book/open an FD online via internet banking or mobile banking. So, FD account opening is no more lengthy as it can be done by devoting a few minutes on your computer or on your mobile phone.

3] FD with insurance/healthcare benefits: Fixed Deposits are traditional and the most trusted way of savings. Today, banks also offer value-added offerings in their Fixed Deposits such as free life insurance cover. For example DCB Suraksha Fixed Deposit, provides a free life insurance cover that is equal to the original FD amount, up to Rs 50 Lakh. FD provides healthcare benefits too. Whilst there is uncertainty around us, in terms of health and wealth, there are banks who are attracting customers through viable options like an FD with healthcare benefits.  

4] Income tax benefits: Banks offer tax saving FD that helps the customer save Income Tax outgo under section 80C of income tax act, 1961.

5] Overdraft facility against bank FD: Banks also provide an Overdraft facility against the FD. This helps in keeping your FD intact yet raise funds for an emergency or business use.

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Apart from this, with an FD investment, the customer has the flexibility to plough back the interest earned at fixed time intervals or at the time of maturity. Also, they can leverage on the power of compounding with reinvestment option, wherein the customer can earn interest over accrued interest.

So go ahead, take the traditional route of saving but don't ignore these money making tips that have the power of compounding your wealth.