|
Of the many investment options available, Bank Fixed Deposits are becoming increasingly popular among investors seeking healthy returns. The reason for this shift from more aggressive investment vehicles such as real estate and mutual funds is the turbulent financial conditions that have unfolded in the past few years. By investing in a Bank Fixed Deposit, the most important advantage is the promise of guaranteed returns and capital protection on your savings. Since the risk factor, generally present in other investment instruments, is virtually non-existent with a Fixed Deposit, you can be assured of receiving healthy returns and growing your wealth over time Bank Fixed Deposit – The fundamentals Basically, a Bank Fixed Deposit requires that you deposit the amount you wish to invest for a specific period of time, also known as the lock-in period. A fixed rate of interest decided upfront by the bank is offered on this amount. Once this period is over, you will get the principal amount plus the interest accrued. Do remember that any withdrawals done within the lock-in period is subject to terms and conditions regarding the interest payout and the bank’s charges, if any. Difference between a Bank Fixed Deposit and a savings account In comparison to a normal savings account, a higher rate of interest can be earned by investing in a Bank Fixed Deposit. Although you can certainly withdraw money at any point in time with a savings account, the returns on your investment will not be on par with a Bank Fixed Deposit, which is the primary reason why it’s better to go for the latter. When selecting a Bank Fixed Deposit, you should always deal with a reliable and stable bank, one that has proven its reputation over the years. Certain banks like RAKBANK offer higher rates of interest and exclusive add-ons too. Customers holding a Bank Fixed Deposit account with RAKBANK get a life insurance cover equivalent to the value of the Fixed Deposit without having to pay a premium. This insurance is provided to the depositors without the hassles of undergoing medical check-ups or signing an agreement. A good investment portfolio should have a certain percentage of funds in a Bank Fixed Deposit. The percentage of investment depends of the investor’s willingness to take risk or desire to invest in a financial instrument that assures stable and reliable returns.
Related Articles -
RAKBANK deposits, RAKBANK fixed deposits, RAKBANK deposit rates, bank deposits, fixed deposit, fixed deposits, fix deposit rate, fix deposit rates,
|
