Fixed deposit is an easy investment plan that is offered by various banking and non-banking financial institutions. You are required to deposit your money for an extended period, which yields high interest on the principal. If one is looking for some safe investment option, then the Fixed deposit can be a great start. However, before you open a Fixed Deposit (FD) here are a few things that you must check:
- Fixed Deposit interest rate
As FD interest rate usually good but the rate of interest varies for different lender, you can check for the best being offered to you.
- The frequency of Paying Interest
The interest rate on fixed deposit is normally paid on a cumulative basis, along with the principal maturity amount. You must check for the payment frequency offered by your lender on fd scheme.
- The Investment Period and the Amount
Check for the amount that you can invest and the lock-in period of the amount in fd scheme.
- Penalty on Withdrawal of the Fixed Deposit
You must also check if a premature withdrawal of fixed deposit before the tenure will cost you some penalty.
Conclusion
These are some points that everyone must keep in mind. Based on your age you can also check for various benefits offered by lenders on fd schemes.
Similar Read:
<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}-->Know the Eligibility and Documents Required to Invest in a Fixed Deposit
