Bank Fixed Deposits
Overview of Bank fixed Deposits
In Bank fixed deposit account, a fixed amount of money is deposited in the bank account for particular time period with fixed rate of interest. Although, the rate of interest in Bank fixed deposits relies
on the maturity period. It is higher if the maturity period is longer and vice versa. The maturity period can be for 15 days and even for 5 years also. The amount of interest can be calculated quarterly,
half-yearly or annually depends on the nature of Bank fixed deposits and varies from bank to bank. The Minimum deposit amount for most of Indian Banks is 1000/- , and there is no upper limit. In bank fixed
Deposits, you can even withdraw the amount before the fixed term but in this case involves loss of interest.
Essential tips Before Opening Bank Fixed Deposit
Before opening bank fixed deposits account, one need to do a good research over net and also visit various banks. You should compare the rate of interest and duration of the FD. You should also check the financial position of the bank and its reputation in the market. Another essential point to remember is that you should keep the amount in five to ten small deposits instead of one big deposit. In this way,
if you withdraw the money before the fixed term , then only the interest of one account would be suffered and rest of the accounts remain as it is without any interest loss.
Benefits of Bank Fixed Deposits
1) Although, it is a slow process, but you will good returns after a particular period of time.
2) Bank Fixed deposits are 100% secured way of investment and returns. Almost all the banks in India, whether they are nationalized, private or foreign are governed by Reserve Bank of India which is supreme body.
3) If you have fixed deposit account, the loan approval is more likely. You can even take loan against your fixed deposit receipts at lower rate of interest.
4) You have a good chance of getting more interest if you are a freedom fighter or a senior citizen.
5) Returns are guaranteed.
Overview of Bank fixed Deposits
In Bank fixed deposit account, a fixed amount of money is deposited in the bank account for particular time period with fixed rate of interest. Although, the rate of interest in Bank fixed deposits relies
on the maturity period. It is higher if the maturity period is longer and vice versa. The maturity period can be for 15 days and even for 5 years also. The amount of interest can be calculated quarterly,
half-yearly or annually depends on the nature of Bank fixed deposits and varies from bank to bank. The Minimum deposit amount for most of Indian Banks is 1000/- , and there is no upper limit. In bank fixed
Deposits, you can even withdraw the amount before the fixed term but in this case involves loss of interest.
Essential tips Before Opening Bank Fixed Deposit
Before opening bank fixed deposits account, one need to do a good research over net and also visit various banks. You should compare the rate of interest and duration of the FD. You should also check the financial position of the bank and its reputation in the market. Another essential point to remember is that you should keep the amount in five to ten small deposits instead of one big deposit. In this way,
if you withdraw the money before the fixed term , then only the interest of one account would be suffered and rest of the accounts remain as it is without any interest loss.
Benefits of Bank Fixed Deposits
1) Although, it is a slow process, but you will good returns after a particular period of time.
2) Bank Fixed deposits are 100% secured way of investment and returns. Almost all the banks in India, whether they are nationalized, private or foreign are governed by Reserve Bank of India which is supreme body.
3) If you have fixed deposit account, the loan approval is more likely. You can even take loan against your fixed deposit receipts at lower rate of interest.
4) You have a good chance of getting more interest if you are a freedom fighter or a senior citizen.
5) Returns are guaranteed.
