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.
2 comments:
Interesting article. There is also a similar post on fixed deposit on this link http://insight.banyanfa.com/?p=103
which emphasises upon the duration of fixed deposits and other important aspects.
Interesting article. There is also a similar post on fixed deposit on this link http://insight.banyanfa.com/?p=103
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