Fixed deposit has higher interest rates than savings accounts and are the most common of all bank investments in India. These deposits are ‘asset backed’, meaning that the amount deposited with you remains in your account for a specific time frame. You can access this money at any time during the period and can also decide to withdraw it by writing a cheque against that fixed amount.
Fixed Deposits are one of the traditional forms of investments in India and surely the safest, guaranteed, and tax-saving ways to save up money. These FDs get tax benefits as they offer fixed returns which cannot be withdrawn or withdrawable till maturity of the investment.
With so many banks offering various types of fixed deposits for the investors to choose from, choosing a good one can get a tad bit confusing. For example, there are Normal Fixed Deposits or Tax Saving Fixed Deposits or even Senior Citizens’ Fixed Deposits. So, if you’re a student or a working professional and want to ensure that your hard-earned money is secured and is growing timely, then here are a few tips that you can look into!
The old lady was good at saving money despite a lack of formal financial education. Whenever she saved ample money, she’d go to the bank and ask them to put in whatever scheme yields regular interest. The bank would ask her how long she wanted to put the money, and she would say whatever period pays the highest interest. She didn’t understand what she was asking for, but she knew what she wanted.
Tips for Students and Working Professionals
If you have limited or no income, it is advisable to explore the maximum and minimum deposit limit offered by the banks or financial institutions. A student can always avail fixed deposits in case of any financial emergencies so as to avoid being indebted to family members and creditors.
Cumulative Fixed Deposit Days 1-3: A cumulative fixed deposit is a type of fixed deposit that takes place on a daily basis. In this case, the amount you deposit has to be increased everyday and it’s also mandatory that you should deposit an amount at the beginning of each calendar month. You will receive interest in a scheduled manner which is referred to as the frequency or the periodicity of interest payment.
If you find yourself in a situation where your Fixed Deposit needs to be withdrawn before maturity, never forget to enquire from the bank about the terms and conditions accompanying the process of premature withdrawal.
Fixed Deposits are a safe and convenient way to invest in your savings at fixed rates. The tenure of the Fixed Deposit ranges from 7 days to 10 years according to the provisions of the bank.
Documents required for investing in FD
- Age Proof
- Address Proof
- Application Form
- Passport size photograph
Fixed Deposit Plans are handy investment plans that offer the peace of mind to ensure your savings remain protected on a fixed schedule. Whether you’re looking to have some extra funds ready or as an emergency source, these plans are great tools to keep you covered.
