Bank Fixed Deposits are financial long-term investment tool which helps you to save and invest money from your monthly income. The investment made in Fixed deposits provide you returns over a fixed period of time and can help you in your rainy days and future.
Bank fixed deposits are one of the most traditional and reliable means to invest, as you get a fixed interest and profit when invested for a particular period of time. Fixed deposits are also preferred by most of the people for wealth creation and saving taxes. Yes, Fixed Deposits are eligible for tax deduction under 80C.
Things to Know About the Bank’s Fixed Deposit Account
Bank fixed deposit offers high-interest rates as compared to savings accounts with the bank. The interest rate offered on FD schemes can go up to 9% but generally, it depends on the bank you chose and on the market.
One can open an FD account with all the top banks.
Once you add money to your Fixed Deposit account, the interest which you will get remains the same throughout the tenure.
You cannot withdraw the money deposited in the fixed deposit before the maturity period.
In case of emergencies, you can liquidate the deposited amount but, it will be done at a lower rate of interest.
Features Offered By a Bank’s Fixed Deposits
To invest in a fixed deposit account one needs to deposit the money only once in the beginning. So, you don’t have to worry about timely payments.
A bank’s fixed deposit is a long term investment plan. When investing in FD your money is kept safely for a longer period at the same time earning you timely interest.
You get FD interest monthly, quarterly or even yearly as per requested while opening the account.
Fixed Deposits are tax efficient and one can save up to Rs. 1.5 lakhs under section 80C of the income tax act.