A fixed-term deposit is an investment alternative that consists in depositing a certain amount of money in a financial company in exchange for receiving, at maturity, the deposited capital plus the interest that has been promised.
Below are some Investing In Fixed Deposits Pros and Cons:
- Returns according to the term of maturity: The longer the time of the term deposit, generally greater the profitability that will be obtained.
- Easy and fast contracting: Another advantage of the fixed term is that hiring a fixed deposit is a short time and is also a straightforward process, which can sometimes be done online through the online banking of the financial institution where the deposit is made and through your Financial Advisor.
- Liquidity: In some fixed-term deposits, financial institutions do not charge any commission for withdrawing the money before the expiration of the fixed-term deposit.
Disadvantages of fixed deadlines:
- Low returns: One of the drawbacks of the fixed term is that although the profitability obtained is assured and has no risk, it is true that in this type of deposited there is low returns compared to other investment alternatives like Mutual Funds.
.Taxation: Fixed deposits are not Tax Efficient , and the holder has to pay tax as per his/ her income slab.
To know more about Fixed Deposits, it is best to contact with Fixed Deposit Advisor as he is the person who can guide you whether Fixed Deposits is right for you or not.