Among one the safe investment options, fixed deposit allows individuals to keep a sum of their money in a bank for a fixed term.
A fixed deposit has a higher interest rate as compared to a savings account and thus making it a safe option.
However, there are certain questions that one must ask before investing in fixed deposits.
What to know before taking a fixed deposit.
1. Is fixed deposit safe?
Unlike other investment options like mutual funds and SIP, fixed deposit is safe and is not dependent on the market conditions. So, no matter the term of the fixed deposit, the fd status will always be better than that at the time of investment.
2. What is the advantage of a fixed deposit?
The fixed deposit helps in diversifying your portfolio and softens the impact of any underperforming assets.
3. What is the minimum age requirement for a fixed deposit?
There is no age bracket for fixed deposit, anybody can open it. Apart from individuals Hindu Undivided Family, private or public limited companies, societies and partnership firms are also eligible to invest in a fixed deposit.
4. What is the interest rate on fixed deposit:
There is no fixed interest rate. Different lenders have varied interest rate and some institutions also offer higher interest rate to senior citizens in FD account.
Conclusion
The above questions may have helped you make better decisions about the FD status. It is important that before you open a fixed deposit, check for the interest rate and then choose wisely.
