The New Year, a time to celebrate with family and friends, is around the corner. It is the time to give gifts to the people you love and let them know how much they mean to you. But, instead of spending money on chocolates, sweets, and clothes, isn’t it time to give them security? Now, don’t think about security cameras, but think about the security of money. How can you do that? There are a lot of finance gift ideas you can choose from, but in the long term, gift Fixed Deposits for the perfect balance between risk and return.
In this blog post, we will help you understand why you should choose finance gift ideas like FD and how to gift fixed deposits. Read on to learn more!
Why Choose Financial Gifts Such as FD Over Traditional Gifts?
Traditional gifts provide short-term joy, but finance gift ideas such as Fixed Deposits (FDs) offer long-term security and stable returns. An FD ensures that the recipient earns interest and receives a guaranteed payout at maturity. Unlike material gifts that lose value over time, gift fixed deposits to create wealth, which can be used for future needs or emergencies. Additionally, senior citizens benefit from higher interest rates, making FDs an ideal finance gift that ensures financial stability and peace of mind.
All you need to do is buy an FD in the name of your loved ones and ensure that they earn an income and are guaranteed to receive a sum of money when the deposit matures. But before you do that, here are some tips you should be aware of:
A Longer Tenure will Get you a Higher Interest Rate
One of the major reasons for gifting a fixed deposit is to ensure that your loved one is earning the highest interest possible from the deposited amount. What you can do is opt for a longer tenure! You can judge the difference for yourself – FD interest rates offered by PNB Housing start from 7.45% per annum for 12 months. Opting for a longer tenure FD ensures higher returns, making it an ideal choice for financial gifting.
For example, if you gift a fixed deposit worth ₹10 lakh:
- For 12 months at 7.45%, the maturity amount will be ₹10,74,500.
- For 60 months at 7.60%, the maturity amount will be ₹14,42,319.
Must Read: What Are The Features And Benefits Of Fixed Deposit Account?
Gift an FD as Per the Needs of your Giftee
Bringing joy on New Year’s Day is easy if you can understand the needs of the recipient or giftee! Does the person require a regular income source? If yes, then opt for a non-cumulative FD wherein the person who you name the depositor can get monthly, quarterly, half-yearly, or annual payments. A fixed income source will bring cheer throughout the year. The other option is the cumulative option, where the amount is deposited for tenure, and the interest is earned at maturity.
Understand the Terms and Conditions of the Offer
PNB Housing has certain terms and conditions that you will have to follow in order to create and gift the FD. For example, if you are opting for a cumulative FD, Rs. 10,000 is required as the minimum amount for a fixed deposit. Take into account factors like premature withdrawal and loan facility so that the gift is usable in case of an emergency. You will also need to factor in applicable gift taxes and the eligibility of the giftee to be named as the depositor.
Don’t Think Twice when Gifting Senior Citizens an FD
One of the major necessities for senior citizens is a stable income source. There are many senior citizen FD benefits in India. The reason that they are a great finance gift idea is that they are eligible for higher interest rates, and there is an assurance of returns. PNB Housing offers 0.20-0.30% higher FD interest rates for senior citizens.
Must Read: How to Open Fixed Deposit Account Online?
Clear All Doubts Before Investing
Don’t forget to look at the CRISIL rating. If you have any questions, you can call the customer care executives or visit the nearest PNB Housing branch to understand the details. Do your research before finalising the FD to make the experience enjoyable for both yourself and your loved one.
Wrapping Up
Now that you know the essential tips for investing in Fixed Deposits, go ahead and bring the joy of financial stability to your loved one. With PNB Housing’s competitive interest rates and flexible terms, gifting an FD ensures your loved ones enjoy financial security beyond the New Year celebrations.
FAQs
How to give FD as a gift?
To gift a fixed deposit, open an FD account in the recipient’s name with a minimum deposit amount as per the bank or NBFC’s requirements. Provide necessary documents, such as the recipient's KYC details. Ensure the recipient meets the eligibility criteria and understands the tenure and withdrawal terms.
What should I consider before gifting an FD?
Before gifting an FD, check the recipient’s financial needs and whether they prefer regular payouts (non-cumulative FD) or lump-sum maturity benefits (cumulative FD). Verify interest rates, tenure, premature withdrawal policies, and tax implications. Senior citizens should opt for higher interest rate FDs for maximum benefits.
