- May 19, 2017
- Posted by: IFS-Team
- Category: Personal Finance
Do you know that one of the easier ways of making your money work for you is by investing in a fixed deposit account? A fixed deposit account is an investment account and a type of savings account in which money is deposited for a stated period of time and a fixed interest rate is paid at the end of that period.
Fixed Deposits have always been popular in India. In fact, any spare money was met with “make an FD” kind of response so popular has this: been as a method of saving. It is safe, highly liquid and yields returns that can cope with inflation. There is an interesting dichotomy at play when it comes to saving money these days. The older generation was much more frugal, trying to save every Rupee that landed in their account. At the same time they had to walk to the bank to create Fixed and Recurring deposit accounts, for which they had to take time out from work or sacrifice some Saturday time. Nowadays, banking has become completely digital. One can create a deposit account instantaneously, by the click of a button. But the present generation is not that tuned in to saving. When it’s easier, it’s not being practiced! It’s time you started looking at your saving habits, to be prepared for a rainy day or a large expenditure.
Please note that it is important to get the tenure right while investing in a fixed deposit because, making a premature withdrawal of your money will lead to being penalized. Do you have any questions, points you can contact us or reach out on Facebook.