It is high time particularly in context of fixed deposits, banks are offering higher interest rates on the term deposit schemes and hence it has evolved as an exciting investment option. People who hurried in to the idea of investing in to a deposit scheme may not look very happy with their decision.
The deposit rates are constantly rising for past few months and the ones who hurried may have lost probably the best chance to make the most of the rate hike. Earlier there was the option of premature withdrawals but now a great amount of risk is involved in case one opts for it.
Most of the banks have now started to levy a penalty of 1% in case an investor wants to go for premature withdrawal, it is also not a good option to keep sticking with the present scheme when better prospects are available and the person can avail more returns against what he is eligible for with his present deposit scheme.
a person can definitely can go for premature withdrawals but only when there is some other scheme where better rates are available and to analyze it a person can use deposit calculators that are easily available on internet and are easy to use.
The idea is to opt for maximum returns and if the new deposit scheme is not yielding much of benefits than a person must not go for it and in this condition waiting can be beneficial as there are still chances of rates going up, so he must keep looking for one.
1 comment:
Another thing to note is that Company Fixed Deposits are NOT as liquid as Fixed Deposits. In most cases, premature withdrawal is not allowed before three months. If you wish to withdraw between the third and sixth month, you may not get any interest at all.
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