Scheme that doubles the initial amount from State Bank of Hyderabad

The deregulation of the savings account rates has prompted the lenders to look for alternatives and innovations in order to attract customers to invest with them. In a similar effort State bank of Hyderabad has come up with a lucrative deposit scheme under which the deposited amount doubles itself in the shortest period of time.

Furthermore, the premature penalty gets waived if the customer wants to withdraw the deposited amount after a period of 60 months and even loan facility is available against the deposited amount. The scheme is available at all the branches of State Bank of Hyderabad with a minimum deposit amount of Rs. 10,000.

The deposit scheme yields 13.84% for general citizens and 14.56% for senior citizens.

Choose maturity period of fixed deposit scheme very carefully

Deposit rates are the safest and most convenient mode of investment for commoners as there is not much risk involved in the investing money under fixed deposits. The only risk is when the bank defaults but even under such circumstances an investor can be sure to receive a return of up to Rs. 1 lac this much amount is insured and hence is default proof.

While making investments under fixed deposits an investor has various choices, there are various maturity periods available under which a person can invest. The interest rate offered at various maturity periods is different and generally for lower maturity periods it is higher.

Apart from that banks also offer special schemes under where for a special maturity period the interest rate offered is comparatively higher than the other corresponding maturity period. So, it is very important for an investor to choose the maturity period of his term deposit scheme after proper consideration in order to avail maximum benefits.

Earn maximum returns with your deposit scheme

Fixed deposit was always a secure investment option but the surge in the deposit rates in the past few months has made it a preferred choice for people. They now can earn greater returns over their deposits but the benefits that an investor can earn can be maximized if he adopts a meticulous approach while opting for a deposit scheme.

The rate of return offered by banks may differ across different maturity periods and also from one bank to another. So, before a person invests under a scheme he must make sure that this the best rate that he can get over the given maturity period and for that he may have to do some research on the rates offered by various banks.

The tenure of deposit scheme must be chosen very carefully, if a person is sure that he will not require that amount for a certain period of time then only he must invest under this scheme as most of the banks have stated to levy penalty on the premature withdrawal of fixed deposits.

Following these simple instructions a person can earn maximum returns on his deposits.

Company deposits are also worth consideration

Most of the people are aware about the fixed deposits offered by the banks but only a few are aware about the fact that even the companies offer this facility in order to raise money, it is because this concept is relatively newer to the Indian investors.

The most lucrative benefit that that the company deposits have over the term deposits is the rate of returns, an investor can earn considerably more with company deposits as compare to the latter, but with such investments risk is also involved.

Bank deposits are the safest mode of investment, even if the bank is unable to make payments in that case also The Deposit Insurance and Credit Guarantee Corporation provides assurance of returns of upto 1 lac while there is risk involved in investing with company deposit in case the corporate entity defaults.

If a person intends to invest with company deposits there are a few things that the investor must make sure which can help him to make safer investments. The fist thing that he must check is the credit worthiness of the company and its financial performance over the years and along with that the rate if return also needs to be checked.

A company offering unbelievable rate of returns must be avoided because risk may be higher with that company, the best way is to invest with well reputed and established companies which are offering reasonably good interest rate over the deposits and hence a person can earn higher than bank deposits.

Should you go for premature withdrawals of FD?

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.

This aspect of term deposits also need to be considered

People are ecstatic about the rate hike in the fixed deposits, most of the things are in favor of this scheme which has contributed to its success, yet there are a few drawbacks which are associated with this scheme through none of them should be a cause of major concern for the investors but still it is important for a person to be aware about every aspect of this facility.

A term deposits scheme requires the investor to be patient as the more the tenure of the deposit the more investor would earn, also there are various other facilities like stocks, mutual funds that can yield comparatively higher returns in a very short period of time.

The safety feature of this scheme is what keeps the investors in high spirits which is lacking in all the other investment options. The other drawback with this scheme is tax deductions. The interest that the investor earns comes under taxable category and TDS is deducted from the total interest earned by the investor.