In today’s India, fixed deposit is
considered as a very popular mode of savings. Fixed deposit investments not only
ensure the safety and security of your money and also enable you to use your
money at a time when you need it the most. Since the fixed deposit rates are much higher in comparison to other form of
investment, people tend to prefer putting their money into fixed deposits. The
chances of people getting attracted towards the fixed deposits grow, provided
the banks offer higher interest rates on fixed deposits. As fixed deposits
involve making investments for fixed tenure, it helps depositors keep their
funds safe and secure and enable them to grow more with dint of rate of
interest offered.
With interest rates reaching around 8 to
9 % per annum (more towards the upper end) fixed
deposit rates that Indian banks offer have become turned out to be more
lucrative nowadays. In comparison to other investments, these deposits yield a higher return for
the reason that you are investing your money for a specific tenure in a fixed
deposit. As fixed deposit are considered more secure, there is more likely to
be a preference for fixed deposits especially in a period of economic
uncertainty,
The
returns on investments are higher in fixed deposits than other forms of
deposits. Depending upon the bank in which the deposit is made, the interest is
commonly received on a quarterly, half-yearly or even annually. The fixed deposit rates increase in direct
proportion to term of a fixed-deposit account, longer term deposit would yield
higher rate. As a case with most of the banks, senior citizens upon retirement
get higher interest rates. It makes fixed deposits a popular retirement option.
Depending on the loan amount and the tenure of
deposit, the fixed deposit rates may
be variable. Therefore, due to the highest return on maturity, fixed deposit is
considered as a very lucrative form of investment.
Summary:
Make
sure you have checked the fixed deposit
rates before applying for it if you are considering fixed deposit as the
safest investment option. These interest rates help in determining the limit of
investments this type of deposit can attract.
