The financial market is all about investing and making money and fixed deposits are the safest and the simplest ways to invest money. They are the most popular and do not need regular monitoring. Those who want to earn money by investing, but don’t have the time to follow the share market, can simply invest in fixed deposits and be rest assured about guaranteed returns.
Many other investment tools may seem luring, but the risk involved is too high. We all want to make the maximum profit, but also want to play safe and, hence, choosing prospects with a larger return may doom the entire sum. The safest option for long term investment is parking your money in a fixed deposit. Moreover, the convenience of online banking and phone banking makes it easy for anyone anywhere to create a fixed deposit. The secrecy is also maintained along with ease and comfort.
Banks, under a predetermined agreement, deposit the customer’s money for a fixed tenure, which is known as a fixed deposit. The rate of interest is higher and fixed, generating a fixed income. The amount of interest paid is fixed and does not increase or decrease during the tenure. Hence, it is, currently, the most secured form of saving. The interest can be reinvested in the principal amount or given at regular intervals, all as per the customer’s instructions. Fixed deposits mature in due course of time, which can be anything from a minimum of 7 days to a maximum of 10 years.
The rates of interest offered on fixed deposits are comparatively better than any other safe investment option. The money can be left undisturbed for a while. Mostly, the longer you keep the money untouched, the better returns you get. These are much better than any simple bank savings account returns. In fixed deposits, the market risk is also not involved as it is not market linked.
An aware customer is always updated with the latest developments in the financial market. It’s best to change your mode of investment according to the market trend and invest wherever you get the best returns. The financial market is very volatile and keeps changing quickly, so it’s advisable to keep a regular check. Also, always compare the rate of interests offered by the banks before you invest and look carefully for hidden charges, if any. Check for rollover schemes, and whether you want them as they vary from one bank to another. The rates of various fixed deposits are available on the internet too where you can crosscheck before investing. Also, make sure of any penalty clause in case of early withdrawal.
It’s best to avoid early withdrawal as this will hamper returns and you would not be paid the full promised amount. In case of any financial crises, choose alternative ways. You can also take a loan or a credit card against the fixed deposit. Mostly, banks, these days, give up to 90% of the sum assured as loan or credit limit at a minimal rate of interest. If the entire sum is not required, never make a premature withdrawal.
With special benefits given to minors and senior citizens along with a higher rate of interest, fixed deposits are certainly one of the best and the safest tools to invest.
Many other investment tools may seem luring, but the risk involved is too high. We all want to make the maximum profit, but also want to play safe and, hence, choosing prospects with a larger return may doom the entire sum. The safest option for long term investment is parking your money in a fixed deposit. Moreover, the convenience of online banking and phone banking makes it easy for anyone anywhere to create a fixed deposit. The secrecy is also maintained along with ease and comfort.
Banks, under a predetermined agreement, deposit the customer’s money for a fixed tenure, which is known as a fixed deposit. The rate of interest is higher and fixed, generating a fixed income. The amount of interest paid is fixed and does not increase or decrease during the tenure. Hence, it is, currently, the most secured form of saving. The interest can be reinvested in the principal amount or given at regular intervals, all as per the customer’s instructions. Fixed deposits mature in due course of time, which can be anything from a minimum of 7 days to a maximum of 10 years.
The rates of interest offered on fixed deposits are comparatively better than any other safe investment option. The money can be left undisturbed for a while. Mostly, the longer you keep the money untouched, the better returns you get. These are much better than any simple bank savings account returns. In fixed deposits, the market risk is also not involved as it is not market linked.
An aware customer is always updated with the latest developments in the financial market. It’s best to change your mode of investment according to the market trend and invest wherever you get the best returns. The financial market is very volatile and keeps changing quickly, so it’s advisable to keep a regular check. Also, always compare the rate of interests offered by the banks before you invest and look carefully for hidden charges, if any. Check for rollover schemes, and whether you want them as they vary from one bank to another. The rates of various fixed deposits are available on the internet too where you can crosscheck before investing. Also, make sure of any penalty clause in case of early withdrawal.
It’s best to avoid early withdrawal as this will hamper returns and you would not be paid the full promised amount. In case of any financial crises, choose alternative ways. You can also take a loan or a credit card against the fixed deposit. Mostly, banks, these days, give up to 90% of the sum assured as loan or credit limit at a minimal rate of interest. If the entire sum is not required, never make a premature withdrawal.
With special benefits given to minors and senior citizens along with a higher rate of interest, fixed deposits are certainly one of the best and the safest tools to invest.