If you’ve ever invested, you’re probably aware of Fixed Deposits. They’re one of the best investments in the market. Once you understand the benefits, you might be tempted to open a Fixed Deposit account.
There’s a lot of flexibility when it comes to Fixed Deposits. One feature is that you can open a Fixed Deposit account with banks, NBFC, and other financial corporations. If you’re investing on behalf of an organisation, there’s also something known as corporate Fixed Deposits. These can be opened by corporations and companies.
There’s a lot to know about Fixed Deposits. Once you understand how they work, and the various interest rates, you can pick. These change from bank to bank. The company Fixed Deposit interest rates in India differ as well. You can also pick from some of the best FD deals. Here’s your guide on the same.
What are Fixed Deposits
A Fixed Deposit account or an FD, is a kind of investment that offers investors a higher rate of interest on returns than a regular savings account. A principal sum is deposited in the FD for a prestated duration. This is known as the tenure. Once the tenure is over, the principal amount along with the interest rate is then credited to the investor.
There are some obvious benefits to having an FD as an active form of investment. The first benefit is the rate of interest. All points aside, this is an investment, and it benefits you by putting money in your pocket. An FD interest rate can work in your favour if you’re looking to make a profit. If you’re seriously considering them, here’s an outline of the various other benefits of a Fixed Deposit Account.
Advantages of Fixed Deposits
These are some of the other benefits of having a FD account with a bank, NBFC, or Company. But, you might have to shoulder more risk with a company FD than with a bank FD. You should also know the risk to profit ratio to make an informed decision about where you want to invest.
Here are a few benefits;
You can use a Fixed Deposit calculator to help you calculate your investment amount, interest rate, tenure, and the profit you can expect. If you want even more clarity, then you can look at a Fixed Deposit interest rate calculator, which can tell you the best interest rate at which you can make profit.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.