Money and wealth has taken the top position in the priority list of most individuals. Many people dream of becoming rich and most of them work had towards achieving this goal as well. Some work hard at their work places and get a raise in their salary while some invest the money they have in mutual funds and shares, hoping to multiply it manifolds in the future. Some also save little money from their income and over the years, become successful in gathering a decent sum. One of the safest investments is a fixed deposit. Many Fixed Deposit Advisors are available nowadays to help an individual take the right decision with his or her money.
In case of a fixed deposit, a certain amount of money is deposited for a certain period, which cannot be withdrawn. A certain interest goes on adding to this money deposited each year, whose rate is higher than a normal savings account. If one wants to withdraw money, he or she has to break the FD but will not get the interest any further.
Benefits of having a fixed deposit account:
The main benefits of having a fixed deposit account are as follows:
- These accounts can be opened for a minimum period of 3 months in several banks.
- There are also some highly rated corporate who accept Fixed Deposits for a period of 1 year or more at rate higher than Banks.
- The rate of interest provided by these accounts is high. Hence, Fixed Deposit Consultants and other people always suggest opening a fixed deposit account as an incredible idea.
- It is a source of financial security. In case of economical crisis, the individual can break his or her fixed deposit account for financial help.
- Loans can also be applied for using the sum in the fixed deposit account.
- Separate bank account need not be opened for the sake of a fixed deposit.
In some cases, the bank offer a low interest rate due unfortunate economic conditions. However these interest rates depend on the bank policies and are different for each bank. The rate of interest also depends on the laws formulated by the government or Reserve Bank Of India.