Features And Benefits Of Fixed Deposits

People always prefer saving their money and assets in secured and safe places where they get the benefit of higher returns and attractive interest rates. Banks offer schemes to attract customers to open accounts with them so that they increase their reach and provide the best of services. Deposit and withdrawal of money are made easy with banking services becoming user-friendly and readily available.

A fixed deposit is an option provided by banks to deposit money for higher rates of interest than regular savings accounts. They support deposits of lumpsum amounts of money for specific periods. Every financer has different deposit limitations. Once the investment is complete, the depositor earns an interest based on its duration. Usually, investors cannot withdraw their money before maturity. They must pay the penalty if they wish to do so.

What are its features? 

Every banking facility has exciting and attractive features that bring a change in its modes of operation. They implement changes to them with time and keep their services up to date. Banks introduce an FD scheme to increase the number of benefits for customers.

Also known as term deposit schemes, they offer a specific tenure that varies from bank to bank. Usually, banks accept deposits for a minimum period of seven days and a maximum of ten years. The depositor can choose a suitable tenure for the deposit.

The Additional Features Are:

1. They enable investors to earn a higher rate of interest on surplus funds.
2. These accounts support only one deposit. Investors open a new account for additional deposits.
3. Their liquidity is lower, but they offer a high rate of interest which is beneficial for investors.
4. They can be renewed easily.
5. Tax from the fixed deposit is deducted at source as per applicable, according to the Income Tax Act, 1961.
   
   

How can it benefit others?

Every facility has features that are of great help for bank account holders. Banks try to keep their customers satisfied with their services and attend to each query or issue they face. They are always at the service of their valuable customers and try not to cause them any inconvenience.

The benefits are as follows:

1. They are safe and offer a higher amount of stability.
2. There is no loss of principal amount with assured returns.
3. Periodic interest pay-outs help in expense management.
4. Market fluctuations do not affect them, which ensures the safety of capital.
5. Company deposits offer higher interest rates.
   
   

Senior citizens can earn higher returns on their FD, with some financers providing them with additional benefits.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on May 5th 2020 09:38. Viewed 306 times.

Share on APSense

Comments