Indian weddings are big events full of culture, colour, ceremony, rituals, and real feelings. This isn’t just a day to celebrate; it’s a constant expression of love and joy. Giving gifts is an important part of these happy times. While people still like classic things like silverware, gold jewellery, handmade idols, and textiles, the idea of practical and long-term gifts is also gaining popularity. One such gift? Fixed Deposits.
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What Is a Fixed Deposit?
The name “Fixed Deposit” says it all: it’s an investment plan where you can put a large sum of money for a set amount of time and earn interest on it.
The interest rate on a fixed deposit depends on how much money you put in and how long you plan to keep it there. So, when the loan is due, you will get back the principal plus interest that has been added to it. But this is only true if you choose a cumulative fixed deposit. You can also choose non-cumulative FDs, which pay you interest every month or every three months.
Investors usually like to put their money in fixed deposits because they are safe and easy to understand. You will keep earning a set amount of interest on your lump sum deposit. Changes in the interest rate or the market do not affect the returns on fixed deposits.
You are sure to get back your deposit, and there isn’t any risk of losing your principal amount. You can’t take your deposit out before it matures, though, unless you’re okay with paying the penalty for doing so early.
Why Gift a Fixed Deposit for a Wedding?
There are a couple of reasons why it can be a good idea.
Encourages saving habits in newlyweds
Newlywed couples have a lot on their plate, and they have a long life ahead. By gifting them an FD, you’re cultivating a habit in their mind that lets them save as much money as possible in the long run.
Provides a financial cushion for future plans
Newly married couples have a lot of plans for their future, and gifting them an FD gives them a cushion that lets them bring those plans to fruition. This makes an FD a far more valuable gift than anything you could have possibly gifted.
Symbolic gesture of long-term stability
Wedding gifts should mean something. By gifting a wedding couple an FD, you’re symbolising their long-term stability and showing that you care for them.
Ideal Scenarios for Gifting
So, who should be gifting an FD to a married couple? Firstly, the ideal situation is when Parents gift FDs to their children. Parents have the best interests of their children at heart; gifting them an FD is the best choice they can make.
Another scenario is relatives supporting young couples; everyone chips in something to bless the young couple with something that’ll bless them for a long time to come. The last one is friends doing the same, nothing could be a more beautiful token of friendship than ensuring long-term stability for your friend who is about to start a new life.
How to Give FD as a Gift?
To gift a Fixed Deposit, you can open an FD account in the recipient’s name at a bank or NBFC and make the deposit on their behalf. Here’s how:
- Choose a trusted bank or NBFC offering competitive FD rates.
- Provide the required documents, including the recipient’s KYC details (such as PAN card, Aadhaar, etc.).
- Ensure the recipient meets eligibility criteria (like age and residency status, depending on the bank).
- Discuss the tenure, interest rate, and withdrawal terms with the recipient so they’re fully informed.
- Some banks may allow you to create a joint FD or issue a gift certificate, which can be encashed or used to open an FD later.
Conclusion
Fixed Deposits are a gift that will last long. It is a gift that gives them a safety net— some additional funds that they can rely on or use when in times of need. Unlike material gifts that may lose their charm or value over time, an FD grows silently in the background. So, it is a wedding gift that is growing and supporting.
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