All you need to know about Fixed Deposit Rates.pdf

1. All you need to know about Fixed Deposit Rates You might not know this, but one of the best ways to make your money work in your favour is to invest it in a fixed deposit. It’s so much more beneficial in the long run and is one of the most reliable means of investments. Here we’ll discuss what a fixed deposit is, and how it can help you in the long run What exactly is a Fixed Deposit? Essentially, a fixed deposit (FD) is nothing but an investment account in which a sum of money is deposited for a specific amount of time at a fixed interest rate. The account is inaccessible through the duration of the pre-determined time. This means that you cannot withdraw, or deposit any money in a fixed deposit amount till it has reached its maturity date. FDs are a safer option than other investment types such as share trading, where there is a huge profit involved, but with little security and guarantee. Interest Rates Now that we know what a fixed deposit is, let’s try and understand the interest policies that work behind an FD account. The rate of interest on an FD is higher than that of a typical savings account since the maturity period is often longer and the money is essentially locked in. To determine the interest rate of a Fixed Deposit account, you can use the Fixed Deposit calculator. The calculator also makes it easy to compare the differences in interest receivable by changing the tenure, interest payment frequency or deposit amount.

2. Why Should You Invest in a Fixed Deposit? An FD is a great way to secure money for the future. Since your money is locked in, even from yourself, it’s a guarantee that the deposit isn’t going anywhere. There are, however, emergency withdrawals that are possible should you face any sort of financial crisis. Furthermore, should you choose to open an FD, you have the option of 6 flexible tenures to choose from. Other benefits include an extra 0.25% on the interest rates for senior citizens and online access to your FD account. How to Invest in Fixed Deposit? Fixed deposits have been highly popular, due to their safety of capital and surety of return. So, how exactly do you go about creating one? You can open an FD account all by yourself or even through your firm or family. However, depending on the city in which you live, the minimum required amount for opening an FD may vary between INR 50000 to INR 150000. Fixed Deposit Rates is great investment tools, especially when you have financial security in mind. While they may not provide the highest return on investment, you’ll always know that your money is safe and sound. Source: http://www.idbi.com/idbi-bank-Freedom-deposit.asp