We all work hard to earn money; however, it is also essential to save money for the future so that your financial goals can be met. Fixed deposit and regular saving account seem an excellent tool for saving hard-earned cash. However, a fixed deposit gives you extra flexibility and interest rates. Here are some reasons why a women's fixed deposit account is better than a normal savings account.
1. If you have money kept in your savings account, then you should put it in fixed deposit (FD). You can earn more after investing for a short period.
2. FD interest rates are better than savings account rates.
3. You can avail many tax benefits through FD tax saving schemes. FD's made for tax saving purposes have a fixed tenure of a minimum of 5 years.
4. The interest rate in a saving account is not fixed according to tenure, whereas FD interest rates depend on the tenure of FD and age of depositor. If you are above 60 years, you can qualify for a senior citizen interest rate which can be as high as 0.5% from prescribed standards.
5. If you want a loan, you can apply for it by using FD as collateral to secure a loan. The amount of credit differs from lender to lender.
Conclusion:
Before opening any bank account, you should always compare the cost and benefits available. If you have extra cash which you are unlikely to use soon you should invest that in FD for a better return.
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