Investments are an important part of our financial planning. It helps us to stay secured and safe from any financial loss or issues when we save for the worst. This savings can be done in many ways which keeps our finances diversified. We tend to invest in a risky venture to get some great returns but at the same time we also put some part of the investment in a fixed return plan or scheme which would give us moderate but fixed returns. One such scheme is the fixed deposits It is a great way to get the returns on time and with average returns. So, let us know something more about fixed deposits.
Fixed deposit is an investment financial instrument which is offered by banks and non-banking financial institutions called as NBFC that provide a high rate of interest as compared to the savings account. This is locked for a certain period which can be broken if need be so that the funds can be used for other purposes. If the deposit matures, then the mentioned amount is credited by the bank or NBFC. But if the deposit is broken in the middle of the tenure, ten a penalty is charged by the bank or the NBFC depending on the terms and conditions of the institution.
There are different types of minimum periods for a fixed deposit and it depends on the institution as well. The general term for a fixed deposit worth 1000 INR is 15 days and for a fixed deposit worth 1 lac is 7 days. Once this period gets over, the amount and the interest are credited to the bank account of the individual.
You can start a fixed deposit with a sum of 1000 INR and can go up to any amount that an individual can afford. The amount of fixed deposit is multiplied by the interest rate as per the tenure so that the interest amount can be calculated.
Interest rate on fixed deposit is the income that is generated when a person opens a fixed deposit. This interest rate is different for different institutions and you can choose the best one according to your requirements.
A fixed deposit is an investment scheme which is introduced by banks and financial institutions so that the individuals can gain some benefit from it. It is very simple to open a fixed deposit. All you need to do is find a good institution that would keep your income safe and invest it in the right schemes so that you can get the mentioned income from it. Banks and financial institutions further invest the same amount in different schemes that give you a better return within time so that it can be paid to the individual who invested in the fixed deposit.
Earlier the fixed deposit interest was calculated by the officials of the bank and financial institutions. We had to rely on them for all such information. But now the official websites of the institutions have all these details. All you need to do is enter the details so that it can be calculated for you. Just keep the three-information handy and your fixed deposit calculator for interest would give you the right results. These details are the fixed deposit amount, the interest rate and the tenure at which the amount needs to be deposited. Once you enter all such details and hit the calculate button. A series of calculations run at the back end so that you can get the results. The calculation is simple as the amount needs to be multiplied with the interest component for the tenure it is invested. If the tenure is more than a year, then the interest is compounded. This compounding means that you would add the interest earned for a year in the principle amount and then calculate the interest for the rest of the period. This calculation would be repeated if you have invested the amount for more than a year. This calculator is great to use so that you know the amount you would earn even before you invest in the institution. It helps to plan your future investments.
There are many types of investment options that would yield you better returns. However, till date fixed deposit is considered as a great investment option. The reasons are many and you should know about it to decide for yourself.
These days everything is possible online and you can work from home for any banking transactions. Keeping this in mind, you can apply for a fixed deposit online using the bank account or financial institutions online account. All you need to do is logon to the bank account and find the open fixed deposit option. There you would get all the details to open a fixed deposit. It would have all the information and guidelines mentioned that would give you the power to apply for a fixed deposit online. Your funds would be deducted from the bank account and the fixed deposit advice would be shared with you on your registered email address. This fixed deposit advice is a receipt and proof that you have invested in a fixed deposit scheme with the bank and the details of the maturity and the fixed deposit interest would be mentioned on it.
Fixed deposits are the best available investment options in the market since ages. You need not invest in any scheme that is risky and could block your money for any other uses. If you have a good amount and wish to keep it for future uses, then you can invest in it make profits for your investment. Fixed deposits are the safest option and have no regrets in it. You need not worry about your money being invested and being lost when it is a fixed deposit. It is the safest and average return investment scheme ever.
All banks and financial institutions have almost same interest rates for the customers. However, some have a higher interest rates and you can choose them to invest your money for fixed deposits with them. This is a very competitive market and you can choose based on your preferences for opening a fixed deposit account. The general fixed deposit interest rate is 8-10% depending on the bank you choose. The interest rate for senior citizens is half a percent higher than the interest rate so that the money for such retired and non-income personnel is safe and secure.
Any bank that would give you a great interest rate and services is the best to invest in a fixed deposit. You can compare them online using the many websites so that you know which bank is giving you a better deal. Earlier you had to visit each branch to know which one offers you the best interest rate, but with the advent in technology, you can now know all such details and much more with just a few clicks on your computer system and smart phones.
There are many types of fixed deposits which can be used for your investment needs. IT depends on your requirement to choose from and enjoy the benefits from it.
Regular fixed deposits are the first of its kind investment options available in the market. You can open a fixed deposit with any bank or financial institution of your choice and get great returns. The fixed deposits have regular interest rates and the terms and conditions are as all know about it. You can book a fixed deposit for period of 15 days up to 10 years. These deposits help you to accumulate the investments for future.
It is a part of your tax saving schemes which would cover 80C section in the Indian Income Tax laws. You can invest up to 150,000 INR which can be exempted from tax calculations and can be a good relief for people do not wish to pay income tax on their current incomes which is lesser as per the tax brackets designed by the Indian laws. In case if you still need to pay income tax then it can be either from the bank or by you. The result should be payment of tax deducted at source which would solve the purpose.
This is another kind of fixed deposit which is over and above the regular fixed deposit. The only change in such a fixed deposit is that it is issued to people who are above 60 years of age and are in the senior citizen category as per the Indian Law. You get half percent extra as compared to the regular fixed deposit interest rates in India and you should be able to get as much benefit from it.
You can compare fixed deposits with many available investment options in the market such as mutual funds, savings account, sips, silver investments, gold investments and much more. Fixed deposits in India are a boon to the investors and they take much pride in it.
You can also apply for a fixed deposit loan with the institutions which is known as an overdraft facility. All you need to do is sign the fixed deposit advice and submit it at the institution so that they can start the facility. You need to pay one percent over and above the interest rate decided while you open the fixed deposit. Then you can withdraw the amount up to your fixed deposit investment amount so that you can use it for your requirements. This is just like any other checking account and a cheque book would be provided to you for the same.
You can also keep your fixed deposit as your monthly income option. This is possible by regularly getting your fixed deposit monthly income from interest deposited in your savings bank account. You can use it for your regular expenses. This amount can be anything that you wish to get for your monthly expenses. Such are fixed deposit plans in India