subject: Ways in which fixed deposits charges may help you survive a market crash [print this page] Ways in which fixed deposits charges may help you survive a market crash
As in most nations of the world, Indian Banks are at all times in competition with other banks to get a bigger chunk of the market share and maximize profits. All of them offer the whole range of services to its customers. These include Banking Accounts, Credit score Card Services, Debit Card Providers, Loans, Internet Banking amongst many more. Also included are Fixed Deposits. A Fixed Deposit rate is the rate of interes provided by the Bank on a sum depending on the period of time that it is deposited with them. Senior Residents please note that the Bank are required to give you a special rate, which is a percent more than it presents its other customers.
All Banks working in India are mandated to pay interest on the sum deposited with them for the fixed time period. Usually, the longer the period of deposit, the higher the interes rate. This makes for varied Fixed Deposit Rates. Deposit holders can withdraw the whole sum post the date of maturity of the deposit - together with the interest which the Bank Pays. This cash is used for a varietyof functions by the Bank through the term of deposit to generate revenue.
Banks are strictly bound to comply with the directions as laid out by Reserve Bank of India, which has the mandate from the Government of India, to fix policies for consumers as well as for banks guaranteeing the entire process is secure and transparent. RBI additionally plays an important role in monitoring the activities in this regards. Though the fixed deposit rates in each financial institution may differ slightly, but the most important factor is the time period.
The range of fixed deposits starts from Rs. 10 and goes to a hundred million rupees. The fixed deposit rates are also categorized into two varieties: normal fixed deposit and fixed deposit for senior citizens. That ranges from 4% to 10% and varies from financial institution to financial institution and also by the period of maturity. However banks cannot go beyond rates which are fixed by the Reserve Bank of India. The Indian banks offer fixed deposits rates from maturity of 15 days to three years.
The Fixed Deposit is therefore thought of a profitable choice by most Indian consumers in terms of investing idle money. The method is fairly simple - identical to opening a Financial savings Account. To ensure that the transaction is secure a deposit slip is handed to the depositing customer. The higher Fixed Deposits Rates ensure investing customers making these deposits a key factor for the Banks to have the ability to generate revenue.
The customers love to deposit their idle cash in banks to gain a good amount of revenue via fixed deposits rates. It is such an easy choice to open a fixed deposit account - identical to a financial savings account. A deposit receipt is issued by the bank to the shopper so that every one the transactions could occur correctly. In short, fixed deposit accounts are the key issue for the banking sector of India and the principle attraction is the fixed deposit rates.
These days one can examine the varied offers by banks on the internet. There are web site which have fixed deposit rates offered by banks. They also have calculators which can allow you to calculate your return in a matter of seconds.
