Say, you have a lot of money in your bank account and you are not sure about investing it anywhere as you are scared it might generate a loss for you in some way. In such a situation, you can choose to invest in Fixed Deposits (FD). Fixed Deposit is an investment option provided by banks wherein you earn interest on the amount you deposit. It is also known as Term Deposit or Time Deposit. Through fixed deposits you get a chance to earn more interest than you would from a regular savings account.
Fixed Deposits are a very safe mode of investment and they help people in cultivating the habit of saving money. There is a fixed period of time for which you can put in money in a FD account and closing the account before the specified period is over will make you pay penalty charges. The rate of interest is dependant on the amount and the period for which you invest it. There is no maximum limit to the amount of money you can put in and you also have the option of owning multiple FDs. Once the fixed period ends, you will get your principal amount plus the interest you earned during it.
A Fixed Deposit has other benefits apart from the rate of interest that you get on your investment. For Example - you can take a loan against your FD. When you take a loan against FD, the rate of interest on the loan is 1 or 2 percent more than the interest you get on your FD.
There are many banks in Singapore which provide various Fixed Deposit schemes. A person should compare the schemes of different banks before choosing one. A smart thing to do would be to choose a bank, which provides the best rate of interest on FDs. To figure out which rate is the best one, you need to first understand the entire process of Fixed Deposit. Once you have researched, you will know what you have to search for exactly when you start comparing. Apart from the rate of interest, you should check for the minimum amount specified by the bank for depositing. For example - OCBC Bank’s Fixed Deposit is offered for a period of maximum 36 months. Anyone in Singapore who is 18 years and above is eligible for OCBC Bank’s FD and a person needs to invest a minimum of S$5,000 to open this account whereas in case of POSB Bank, the requirements are different. Anyone above 12 years of age can apply for an FD with POSB Bank and the minimum amount required is S$1000.
Banks give a low rate of interest on FDs in Singapore, so it is advisable that you invest a good sum of money for a long period of time to get more benefits. There are many websites online which you can use to compare schemes of various banks and financial institutions in Singapore. Comparing offers online is easy and less time consuming. There are banks in Singapore which allow foreigners to open an FD account as well and in multiple currencies. The rate of interest for investing in foreign currencies is different from the rates given on Singapore Dollar. Some of the banks besides OCBC and POSB, which provide Fixed Deposits in the Island Nation of Singapore are HSBC, CIMB Bank, Standard Chartered Bank, RHB, DBS Bank, Citibank, etc. People can apply for Fixed Deposits online, if the bank they selected provides the online application facility or they can visit the branch of the bank in person.
Now that you have more information on Fixed Deposits, all you have to do is find the best scheme for yourself and start saving money today.
Save money today in order to relax tomorrow.