Compare FD Rates To Get The Best Fixed Deposit Plans￼￼
If you want to get the best plan on fixed deposits, it’s necessary to compare FD rates of interest. Making a comparison of the interest rate on fixed deposits provided by different banks and financial institutions is a simple process. You can find the interest rate on the web easily. It can help you decide which financial institution is the best for you. But make sure that the bank or financial institution you choose is reputed and has a long history. Your money is valuable and you should only trust the most reliable sources with it.
What is a Term Deposit?
The other name for a fixed deposit is a term deposit is a popular form of investment that individuals. companies make for a certain period of time. During the tenure of the deposit, the depositor will get a fixed interest rate on the amount which will be receive in one of two terms. One is between maturity when you need regular payouts. The other payout is when the deposit completely matures and you get a payout of the full interest amount. You can choose the type of term deposit, the amount you want to deposit, and the tenure.
Normally, money invest term deposits can’t be withdrawn in between. You’ll receive the principal amount along with the interest on maturity. However, if you need the money urgently, you can withdraw prematurely. Doing so incurs a penalty. You also won’t receive the same benefits as what you would get if you let the deposit mature completely.
Whom You Can Get Term Deposits?
Typically, term deposits are provid by financial institutions that are approved like banks, credit unions, building societies, etc. The interest rate of term deposits is not the same with all the providers. They can have differences from one another. So, it’s necessary for everyone to do proper research on the rate of interest on term deposits so that they have a better understanding. Select one that suits you the best.
Different Types of Term Deposit or Fixed Deposit
Apart from a normal fixed deposit plan with financial institutions. there is a facility for tax-saving fixed deposit plans as well. When you invest in a tax-saving fixed deposit scheme. it lets you receive tax benefits when you’re filing your income taxes, under section 80C of the Indian Income Tax Act.
It lets you save some money when you pay your income tax to the government of India at the end of every financial year.
If you’re looking for a safe and easy way to invest your money, consider a term deposit or a fixed deposit. Both options offer peace of mind because you know that your money is lock in for a set period of time. With a term deposit, you can choose to have your money locked in for as little as three months or as long as five years.
You can also choose to have your money put into a range of different products, such as government bonds or corporate bonds. Fixed deposits are similar to term deposits in that they offer a range of products, but the terms are longer (up to 10 years). This means that you can lock in an investment for a longer period of time, which can be helpful if you’re unsure about what direction the market is headed.
Read More Info: Fixed Deposit Calculator
In the case of a normal fixed deposit scheme, you can choose the term and amount depending on your preferences. From monthly schemes to FD schemes of 3 years’ tenure and more, it depends on you to decide the tenure of the fixed deposit. You can even choose a low to high amount to be kept as a fixed deposit. You’ll be provided with the fixed rate of interest on the amount you’ve deposited in your fixed deposit account on maturity. Since the amount can’t be withdrawn before maturity, it’s better to have a fixed deposit for a smaller tenure. But if you don’t have any requirement for the money in the deposit, you can go ahead and invest in longer tenure.
But before making any investment, make sure to read all the rules and regulations regarding this with the financial institutions so that you don’t find any unwelcome surprises waiting for you. You can even have more than one fixed deposit with the same financial institution. That can be helpful if you’re setting up different deposits with different tenures so that you can get a regular payout.
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the publication