A fix deposit or an fd is a type of savings-invtment where a guarante intert rate is add to the deposit at the end of the decid tenure. The intert is grant bas on the condition that the money is not withdrawn before the end of the maturity period.
At the end of the tenure
The amount may be withdrawn and is paid back with intert. Or can be reinvt as a principal for the fd’s next tenure. Discover why fds absolutely must become a part of your portfolio through the five following reasons.
For earning higher intert rat
Than savings account- banks in india offer higher intert rat as compar to a regular savings account. Which mak fix deposits good sourc of steady income. The return in an fd is approximately double from that of a savings account which mak it a very attractive offer for keeping your money safe while growing it.
For the security and liquidity
if you are looking to invt your money in a strs-free scheme that would prove to be a lot ls risky than stocks or shar. An fd is a safer option for your invtment. The indian banking industry is highly secure. And invtors can rt assur their money will Singapore Business Fax List mostly garner safe returns from invtments into an fd. Moreover. Fds also offer good liquidity. If you ne the funds. You can withdraw the fd at any time. And the money is transferr to your bank account.
For the power of compounding
in an fd. Interts may be paid out monthly. Quarterly. Half-yearly Customs Data Download or annually. If you ne the funds regularly. You can select to withdraw the intert-earn into your savings account at any interval. However. If you are willing to keep your funds into the fd for longer. Invt your intert back into the fd to grow your principal. The intert for the next withdrawal is calculat on the new principal. Which is higher and will hence. Grow your returns at a compound rate.
Flexible tenure and premature
Withdrawal options- most banks offer flexible KH Lists tenur for your fix deposit. Ranging from just 7 days to 10 years. However. Banks expect you to keep the funds in the bank for the entire period of the tenure for you to avail the intert benefits. If you would like to withdraw before the end of your tenure. You may do so. But will be levi a small penalty charge for the same.
Loan facility: some banks offer
You the option of taking a loan against your fd. You can borrow up to 90% of the principal amount and accru intert as a loan in an instance where you may ne immiate financial assistance. This way. You can gain accs to funds while ensuring that your money still earns intert.
Moreover If you have
An unsteady or non-secure source of income. Invting your savings into an fd would be a smart way to grow your money. You can also save more from a fix deposit as it can also be liable to tax ductions for the money sav in it as per the section 80c of the income tax act.
