A fixed deposit account is an investment account and a type of savings account in which money is deposited for a stated period of time and a fixed interest rate is paid at the end of that period. It is a safer investment option as compared to other investment types such as shares or the money market. Opening a fixed deposit account is both quick and easy and all you have to do is to deposit money into the account for a given period of time, for it to earn interest for you.
Advantages of Fixed Deposits:
Your "estate" consists of all property owned by you at the time of your death, including:
- Assured Returns- Investment in fixed deposits gives you an assured return. The returns are generally over and above the returns offered by a savings bank account.
- Provide flexibility:FDs provide you with the flexibility of fixing your money over a period of time. Fixed deposits come up with n-numbers of tenure duration which ranges from 7 days to 10 years.
- Helps in liability crunch: Sometimes liabilities arise due to uncertainty and you may have an urgency of having cash at that point in time.
- Risk managing instrument:Fixed Deposits are the best in managing that kind of risk when you are planning for long-term financial goals of your life.
We also are advising investors at the moment, when you look at fixed deposits, invest with a long term time frame.