subject: Advantages Of Fixed Deposits [print this page] If you have thought of investing your money for some future use, you are in the right path. Now that the world has become so unpredictable, we are never sure what we have for tomorrow. The monster in the form of recession is eating up all job opportunities around the world and has also stopped development to a large extent. In these situations, we might have to face sudden occurrences of emergencies and bankruptcies or losing of jobs. And remember that you are all on your own, if you don not have something to rely on, you are totally lost. So it is always good to think and plan your future so that you don not really face problems and you have some back up ready to help in drastic situations.
What are fixed deposits: One of the most effective, reliable and preferred method of investment is Fixed deposit. If you really want to secure your old age, see your kids growing in secured atmosphere when they are mature enough, you should go for some fixed deposit plans. In very plain words, fixed deposits are long term deposits where your money is kept in your account for some fixed period. You wait till the period agreed upon elapses and the bank pays interest on your original amount, which can be as high as 9 percent, depending on the market condition. This is the best example where you can see your money growing with time and to your amazement, you get a lot sum of money after the term is over.
However, there are some facts to consider and understand before you go for a fixed deposit:
a)Some people consider it is a slow process of gaining money, where you get good return, but have to wait for a long time. Nevertheless, it is considered a safe investment as you have a assured amount of money to receive after the fixed period irrespective of the market condition.
b)There are features of withdrawal in premature periods where you can draw some money in the shape of loans from your account and can use it in demanding situations. Most of the banks do not charge any penalties on such withdrawals.
c)If you are senior citizens, you have a good chance of getting an elevated rate of interest to your benefit.
d)A wise selection of fixed deposit scheme can give you compound interest rates where you can see your money multiplying faster than ever. Some schemes are good and can give you good returns if invested in appropriate amounts and time.
The concept of FD has worked wonders for many and has been a life saver for many people who were left stranded suddenly with no one to help. If you happen to face some bankruptcy charges, you always have your fixed deposits to help you out of the blue.
