By Anjali N Varma
Fixed Deposit aka term deposit is an instrument by which one can deposit his/her savings for a prescribed period of time with a bank. When the period of deposit elapses, the depositor is entitled to the interest on the deposited amount. In some cases the rate of interest on fixed deposits can be as high as 9.5%. All you got to do is deposit your savings in a bank account of your preference and be rest assured for money's growth over time. Check with multiple banks regarding the instrument and select from a wide range of available option and narrow done to the one which you feel is tailor-made for your needs.
From the bankers point of view these are loan arrangements. In simple terms the money deposited under such scheme will earn a fixed interest rate, in the gambit of the rule and regulations that governs such account. The rate of interest on your fixed deposit is determined by many factors such as the location of deposit, the duration for which the amount is deposited as also the currency involved for making the deposit.
For starters, a fixed deposit is not a normal deposit that you do at your bank and then withdraw it as and when you please. But, it is a deposit which cannot be withdrawn in the specified period. Generally, this type of deposits is made for duration of 5 years. During this time, the amount remains in your bank account and is prohibited to be withdrawn for any reason whatsoever. Non-profit organizations, corporate entities and individuals alike, who wish to keep aside a stipulated sum for a particular period of time, most often than not find that such deposits is the most easiest way in attaining their objective. The icing on the cake is their money will earn a rate of interest that is shielded by any fluctuations in the interest rates that governs other type of accounts.
Such deposits are a good if not the best way to gain a return on investment which is a tad higher than a convention saving account.
Trust Deposits - Deposits that are made "in the name of one person, as trustee for another" are branded as "trust deposits."
Trust deposits are madefor three basic reasons.
1) Pose for the disposition of a domain after demise sans the use of a will or administration,
2) Hide from others info of financial standing, or
3) Escalate deposits where a prescribed limit is set upon single deposits.
From the bankers point of view these are loan arrangements. In simple terms the money deposited under such scheme will earn a fixed interest rate, in the gambit of the rule and regulations that governs such account. The rate of interest on your fixed deposit is determined by many factors such as the location of deposit, the duration for which the amount is deposited as also the currency involved for making the deposit.
For starters, a fixed deposit is not a normal deposit that you do at your bank and then withdraw it as and when you please. But, it is a deposit which cannot be withdrawn in the specified period. Generally, this type of deposits is made for duration of 5 years. During this time, the amount remains in your bank account and is prohibited to be withdrawn for any reason whatsoever. Non-profit organizations, corporate entities and individuals alike, who wish to keep aside a stipulated sum for a particular period of time, most often than not find that such deposits is the most easiest way in attaining their objective. The icing on the cake is their money will earn a rate of interest that is shielded by any fluctuations in the interest rates that governs other type of accounts.
Such deposits are a good if not the best way to gain a return on investment which is a tad higher than a convention saving account.
Trust Deposits - Deposits that are made "in the name of one person, as trustee for another" are branded as "trust deposits."
Trust deposits are madefor three basic reasons.
1) Pose for the disposition of a domain after demise sans the use of a will or administration,
2) Hide from others info of financial standing, or
3) Escalate deposits where a prescribed limit is set upon single deposits.
Fixed Deposit is a great way to earn more interest on your savings. Be a part of HDFCs Fixed Deposit or Trust Deposit because HDFC has been awarded rating for its deposits from both CRISIL and ICRA for the SIXTEENTH consecutive year, representing highest safety as regards timely payment of principal and interest.
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