The Advantages of Having a Fixed Deposit Account

With the unrest and risk involved in the equities and mutual funds, more and more investors are coming forward to put their money in Fixed Deposit Plans so that their money works in the best possible way.

Fixed Deposit Account:

A fixed deposit plan is an investment account in which money is deposited for a stipulated amount of time and the account holder is paid a fixed interest rate at the end of the term. In other words, the process of earning fixed deposit interest rate is highly lucrative for investors who want to grow their money as it lies in the safe hands of a finance investment company in India, Delhi.

Fixed deposit is definitely one of the safer investment options when compared to other investment types such as equities and mutual funds. And, it does not ask for any kind of in depth research as a fixed deposit plan is free from all types of market risk. Opening a fixed deposit account in a well reputed finance investment company in India, Delhi is very quick and easy and all you have to do is to deposit money into the account for a given period of time, for it to generate interest for you.

Below are some of the straight pointers that advocate why you should take a Fixed Deposit Plan:

·        It’s very helpful for those who want to gain rate of interest from their idle lying money. A fixed deposit plan encourages a saving habit as the money you deposit needs to be in the account for a period of time without you making any withdrawal

·        Investing in a fixed deposit plan earns you a higher rate of interest than depositing your money in a mundane savings account

·        A fixed deposit account acts as a second refuge for an individual during his time of financial crisis. In an event of a cash flow squeeze it can be used to meet your sudden cash requirements

·        You can reap your interest at maturity from finance investment companies India, Delhi both annually as well as monthly depending on the term you chose. You can also use these money to buy assets if you want

·        Fixed deposit plans also give you the flexibility to choose how long you want to invest your money in a fixed deposit account ranging from 30 days to ten years

·        You can choose to have more than one fixed deposit account if you want to save for different goals

However, one thing worth keeping in mind while taking a fixed deposit plan is to get your tenure right at the very beginning. Making a premature withdrawal of your money will definitely lead to being penalized.