Fixed deposits are a good way to save money and keep it secure, if you have a large sum of money as investment. A fixed deposit in a bank will earn you higher interest rate and once matured will give you a good amount. Fixed deposits are not only offered by banks but also by companies and corporate called Non-Banking Finance Companies. While there are umpteen numbers of banks, offering fixed deposits choosing the best one is vital.
How to select a good fixed deposit plan?
- Select fixed deposit plans which are not dependent on ratings.
- While making a fixed deposit choosing private sector banks or PSU banks ensure safe returns.
- If you are planning to make an investment with fixed deposit, always consider the maturity amount, interest rate, interest rate after tax as well as returns
- Before making an investment on fixed deposit in the bank, always compare other banks and the rate at which they offer the interest. The rate of interest and tenure differ with different banks.
- It is always a good idea to thoroughly go through the premature withdrawal terms and conditions before making a deposit; it varies for different banks. Always study it before you withdraw as some banks impose a penalty charge on premature withdrawal of fixed deposit while others do not.
- Always have an idea about the tenure or time period you are going to deposit the money; short or long depending on how soon you want the money.
- Different banks offer different fixed deposit schemes, so always make a comparison and then make a decision on which bank to go with.
How to make a comparison of fixed deposits in banks?
While the underlying facts and process on fixed deposit remain the same, banks may offer different schemes for senior citizens and savings account wherein the rate of interest, minimum balance, annual yield and tenure may be different.
- While some banks offers a minimum balance of 10,000 INR some stick to 5,000 INR.
- The rate of interest may start with 7.50% for some extending to 8%, 8.50%,8.90%,9% and even 9.10%.
- The duration also differs for different banks, some are 1100 days while others 400 days, 900 days, 4 to 5 years, 24 to 36 months, 21 months 10 days, 3 to 5 years etc.
Hence depending on the deposit you are about to make, choose the bank and all other parameters in it wisely. Fixed deposits are always a good way to earn money but always analyse and have a close look at various schemes offered by different banks and choose the one that is most likely to give you more benefits and returns.
