Why should a Homemaker Invest?

Mansi (30) is married and is a mother of two kids. Her husband Sumit is earning fine, but they still have to struggle with their finances in times of emergencies. During such small emergencies, Mansi uses the funds that she has saved in midst and corners of her house.

Over the years Mansi’s small saving have accumulated to an adequate investment amount, now the question that befalls in front of a housewife is how and where to make the optimal use of these savings?

Mansi has two options in front of her; she can either allocate her funds in a savings account or can invest it. Mansi’s situation is not new; usually housewife’s struggle with this quest and end up saving their funds or allocating them in unknown sources. However, this won’t benefit much. Now, investments can be new, and a bit intimidating to a housewife like Mansi. But unlike other means, they are surely the best place to park funds. 

What is Fixed Deposit?
When it comes to investments, at the start, they might feel intimidating as the first thing that comes to mind is risk. In fact, if planned well investments can be the best way to make some extra income. Fixed deposit is an investment option that involves less risk compared to other investment avenues and is the safest among all. Compared to a savings account, fixed deposits offer higher returns and better schemes. Also, fixed deposit is considered as one-time investment wherein you have to invest all your funds at ones. Apart from this, there are various benefits an FD offers.

Benefits of Investing in a Fixed deposit:

• High Returns: As mentioned above, fixed deposits help you earn higher returns compared to other investment avenues. Apart from this, if you apply to a Non-Banking Financial Companies (NBFCs), you can earn a bit higher interest rate than banks. Plus investing with a senior citizen fixed deposit can earn you higher interest rates than normal FD.
• Minimum Deposit:No matter how much cash you hold in hand, fixed deposit allows a deposit of minimum INR 25,000. Now, this is great for housewives as they might not have huge or lump sum cash in hand.
• High Stability and Credibility:If you are still stuck with a question whether to invest in an FD or not, this will give you the answer. Many NBFCs have an ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating which shows how reliable and credible they are. However, you can easily invest in them without any worries of risk.
• Flexi Tenor:Now, there is no hard and fast rule when it comes to tenure. Fixed deposits offer you a choice to choose a tenure period ranging from one to five years. Plus after the maturity of your FD account, you can also reinvest and earn higher returns.
• Online Assessment: Although you are a housewife, you can be entangled with a lot of work and at times might not be able to reach the financial institutions to check your transactions or for that matter apply for the FD account. In such a situation, you can use the online assessment facility where you can apply for the FD account as well as track your transactions from any part of the world.

It is not a compulsion to open a fixed deposit account if only you are a mother or have financial difficulties to handle. In fact, you can also open an FD account if you are newly married. Planning your future is extremely necessary as you don’t face any future problems.