Grow Your Spare Money In Account With Bank FD [Fixed Deposit]
Fixed deposits [FD] is a type of deposit offered by the bank in helping the investors in getting a higher rate of interest than regular savings to account on the maturity date for which it was kept, its similar to the lumpsum amount in case of mutual funds.
To start the FD person need not require the creation of a separate account.
Investors with a bank account can start the FDs within there own bank.
Withdrawal of money from the fixed deposit before maturity?
- FD’s withdrawal before maturity, the principal amount with a lower interest rate or after deducting a penalty amount will be charged from the total amount.
- The recent update from RBI, banks can also offer fixed deposits [FD] with lock-in.
- The banks may refuse any withdrawal of money before the maturity of FD for which it was started.
Similarly, the investor can also start post office fixed deposit after checking the interest rates online for the FD’s in a post office and bank.
Now many of you might be thinking weather fixed deposit [FD] in a bank is safe or not?
The Bank Fixed Deposits [FDs] are generally safe investments as the FDs up to Rs 1 lakh are insured under the Deposit Insurance & Credit Guarantee Scheme of India.
Before investing remember that the interest rates for all the banks are not the same but it also differs from bank to bank for both FD and RD [Recurring Deposit].
A minimum and Maximum amount, duration differ from bank to bank, the amount can be minimum Rs.1,000 and the maximum amount in a year is Rs. 1.5 lakhs for the duration of months and years up to a maximum of 10years for most of the banks, unlike mutual funds which can be kept for a long duration.
Fixed deposit features:
- Fixed sum amount on maturity.
- Lower risk, almost no risk like in liquid mutual funds.
- Fixed rate of interest but mutual fund varies with the market.
- Returns are less compared to equity funds.
Few banks with good interest rate:
- RBL bank
- IDBI bank
- Indusind bank
- Kotak Mahindra bank
- HDFC bank
- ICICI bank
- Axis bank
All these things you should know while starting bank FD and if any doubt ask but never stop learning #knowandask