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Fixed Deposits

Fixed Deposits

Providing your hard earn cash with right security measures has become a significant job, to carry out for each. The profitable banks and other financial companies, recommend people with services like opening an account, where cash can be placed. This account work like a storage system, for the cash you earn. There is an interest rate that appreciates the money on a monthly or yearly basis. Different types of accounts can be open by a personsuch as current, personal, and savings.

A fixed deposit offers the financier with a higher rate of interest compared to other means of saving. These funds cannot be withdrawn previous to the date of maturity. On the other hand, they can be withdrawn only before prior notice. As it is said to be a general usage in the middle of Indian people, other countries also see a fame of these accounts. The term fixed denotes a fixed rate of interest and fixed maturity period. 

There are different components to keep up in mind while selecting this investment alternative:-
  • Principal Amount: It means the sum deposit in the bank
  • Period of the fixed deposit
  • Interest amount given by the bank
  • Penalty clause
There are some other long-term benefits offered as below :-
  • Fixed deposits are very secure and safe method to invest money.
  • The fixed deposits earn fixed rates of interest for the whole tenure, which is usually compounded on a quarterly basis. Investment through this way can offer a usual source of income during interest rates. This has gained fame in the middle of the retirees.
  • By the mean of fixed deposits one can save on tax and give returns at the same time.
  • Called as term deposits in the other countries, this kind of investment has proven helpful for people who require lower liquidity of funds. It is appropriate for people who are looking to store money for a longer period.