The pandemic has made one thing clear – a health emergency can arrive at any time and shatter the dreams of not only the affected but also a score of other people. To make things worse, a health emergency also comes with a financial emergency, and arranging funds becomes challenging, almost always. A financial crisis may also happen due to an unexpected job loss or a lack of demand in business.
With PNB Housing Finance FD, you do not need to spend sleepless nights anymore. If you save a part of your income every month, PNB Housing Finance’s high FD interest rates and easy withdrawal options, make sure that your emergency corpus is a click away when you need it urgently.
Here are the best features of an FD based emergency fund
#1 Withdraw Money Anytime You Wish To
As an emergency does not come with a warning, PNB Housing Finance FD comes with a premature withdrawal option. You can withdraw money anytime you wish to, irrespective of the FD term. However, there is a mandatory lock-in period of three months, before which you cannot withdraw the amount. But, when you look at the high FD interest rates, this trade-off seems normal. Hence, it’s reasonably easy to get the FD-based emergency fund whenever the need arises.
#2 High FD Interest Rates
When you avail an insurance policy, you pay for an indefinite period, and in most cases, the premium does not come back to you. Similarly, when you avail of a loan or credit card, you may have to pay a high rate of interest. PNB Housing Finance FD, on the other hand, is a no-frills investment option, in which the money remains legally yours until the end of the deposit tenure, and it keeps generating money, only to come back to you when you require it.
PNB Housing offers industry best FD interest rates which start from 5.90% for an FD of 12 months to 6.70% for a 120-months FD. If you choose the cumulative option, the tentative yield to maturity may go as high as 9.13% for a 120-months’ FD. Hence, unlike other options to get emergency funds, where you pay to get urgent money, PNB Housing Finance FD offers you an appreciation of your capital.
Now that you know how PNB Housing Finance FD can help you to create an emergency fund, it is the best time to explore ways how you can manage your finances to tide over an emergency.
- Save every month: Make it a habit to keep a specific amount every month that you can use to invest in PNB Housing Finance FDand get high-interest rates.
- Cut Costs: While this does not mean you have to sacrifice your pleasures, you may sometimes regulate your spending and save money for the emergency fund. Let’s assume you drive your car to the office six days a week. You may try to avail of public transport twice a week and contribute the amount for a worry-free future.
- Use Windfall Gains to Increase Your Investments: At times, you may receive a lump sum from your office or existing investment. It is wise to spend a part of it and reinvest it to create a PNB Housing Finance FD.
Not having an emergency fund may worsen a financial crisis. The best time to start creating your emergency funds is now, and PNB Housing Finance’s high FD interest rates will do the rest.