Hailing from a family of humble means, I have seen my parents struggling to make ends meet. Be it providing us with education or running a family of six – life was not really smooth, at least in terms of economical means.

Upon completing my higher secondary (12th grade) examinations, I landed with a job at the neighbouring coaching classes, which paid Rs1200 a month. My mother advised me to invest Rs500 in a monthly recurring deposit account, which she said can help me fund my education in future. This was my first stint with financial investment, which gradually went on to become a habit as I grew old.

My short-term goals usually include buying gadgets, kitchen accessories and renovating the house. However, in the long run, I plan to buy a small residential property in Mumbai suburbs and take a long vacation to Iceland. Needless to say, in order to realise the same, I have been dilligently investing in tools such as fixed deposits (FD).

Investment in fixed deposit has been the most basic saving platform I feel, and it yields an interest rate of roughly seven per cent per annum. Despite newer investment avenues available in market these days, traditional tools still hold on to their charm, especially investors who are risk averse. 

Though, FD investments come with a lock-in period, one certainly has an option to choose from various lock-in periods ranging from 30 days to 10 years or more. FD investments come in handy in case of emergencies.

Investment in fixed deposit comes handy to achieve short term goals and is boon in time of emergency, as it involves less amount of paper work and is risk-free and the money is not locked-in. I invest Rs50,000-1 lakh annually depending upon my financial needs.

Also, I press on investment in fixed deposit amongst other investment avenues is because first, it promises secured returns and second, for reasons mentioned above. However, of late I have started exploring other investment options as well.