You must know about fixed deposit account (FD). If you don’t know about fixed deposit account (FD). So you must have heard its name What is fixed deposit (FD) account? What are the benefits of opening a fixed deposit account (FD)? How much interest do you get on FDs? And whether you should make a fixed deposit or not. Today we are going to answer all of your questions. If you want to know the answers to these questions. So you have to read our article last.
What is fixed deposit account (FD)?
First of all, friends, we need to know what is a Fixed Deposit Account (FD)? Let’s talk about fixed deposit (FD) so in simple language we can say. When a person fixes or deposits a certain amount of money in a bank for a certain period of time. We call it a Fixed Deposit Account (FD). Usually, the bank interest rate is higher on the amount deposited in your savings account and current account than the amount deposited in the fixed deposit account (FD).
Nowadays almost all banks in India offer fixed deposit (FD) facility. The major banks in these banks include State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, Union Bank, ICICI Bank, HDFC Bank, Yes Bank, etc. Through these banks, you can make fixed deposits (FDs) from 7 days to 10 years. Fixed deposits are also called short form FD accounts. In addition, in some countries, term deposits or bonds are also known.
How much interest is received on fixed deposit account (FD) account?
Guys, as we’ve already told you. That on fixed deposit (FD) account you are provided more interest than simple savings account or current account. Talking about the interest, some time ago, on the fixed deposit account, you were given about 15% interest. But at present, this interest rate has come down from 7% to 9%. Earlier, when you make a fixed deposit of your savings account, your money would double in 4 to 5 years. Now it takes at least 8 to 10 years for your money to double your savings account’s FD.
The interest rate on fixed deposit accounts is therefore cut. Because the central bank of any country makes inflation adjustments every year. Due to which the price of currency decreases. Due to inflation, the price of currencies is generally reduced continuously every year in all countries. Therefore, the interest rate paid by the central bank on the amount deposited in the bank account is cut from time to time in all the countries.
Talk about a developed country like america, the same thing has happened in developed countries like america. In the US, no interest is now paid on the amount deposited in the saving account. Instead, banks charge interest on money gains deposited in the saving account in exchange for the security of the customers’ money.
In how many days will the deposit in the Fixed Deposit Account (FD) account be doubled?
Earlier, it used to take 3 to 4 years for the deposited money in the fixed deposit account to double. At the same time, it takes 8 to 9 years to double the deposit in the fixed deposit account (FD) at the present time. And in the coming time, it may take more time for the deposits to double the deposits in the fixed deposit.
But still if you want to know. That in how many years will the amount deposited in your fixed deposit account be doubled. So for this, the interest rate that is being given to you by the bank on the money deposited in the fixed deposit account. Divide it by 72. After this, the result will be that the amount deposited in your Fixed Deposit (FD) account will be doubled in that number of years.
You can understand it that way. Let’s say your bank pays an interest of 9% on the FDs deposited in your account. So you have a deposit of 72/72. It will double in 9 = 8 years.
Whether or not to deposit money in fixed deposit account (FD)
Interest rate in fixed deposit accounts is continuously decreasing. In such a situation, if the question arises in your mind whether we should deposit the money in the fixed deposit account or not. So that’s the simple answer. As we all know, about 2 times the interest is provided on the amount deposited in the fixed deposit account (FD) account as compared to the amount deposited in the saving account. In such a situation, if the money is deposited in your saving account. And you don’t need that money right now. So you get your money fixed deposit account (FD) instead of keeping it in the saving account. So this will get more interest on the amount deposited in your bank.
Apart from this, it is nowadays fixed deposit (FD) from 7 days to 10 years by banks. So you can convert the deposited amount in your bank account into a Fixed Deposit (FD) account as per your time limit.
Benefits of Fixed Deposit Account (FD) Account:
Some of the benefits of depositing your money in a fixed deposit account are as follows:
- There is a low risk and easy return on the amount deposited in the fixed deposit. That means there is no one’s reaction to the amount deposited in the FD.
- Interest rate is provided higher on the amount deposited in the fixed deposit.
- Fixed Deposit Account (FD) is a secure investment. That means your 99.99% + interest will never sink.
- If needed, you can get withdrawal from fixed deposit account (FD) in advance.
- There is no risk like mutual funds and stock market on the money deposited in fixed deposit account (FD) account.
- Monthly interest income can be earned from a simple fixed deposit account (FD).
- At the same time, more returns on maturity can be achieved by reinvestment of interest.
- Fixed Deposit Account (FD) receives 7% – 9% interest annually.
Where to get fixed deposit account (FD)?
As we all know, there are many options available nowadays to get a fixed deposit (FD). It’s not that you can make fixed deposits (FDs) of your funds only in banks. If you want, nowadays available finance companies which are also known as financial institutes. You can also make fixed deposits in them. There are also housing finance companies. In which fixed deposits (FDs) are made. It offers fixed deposit account (FD) facility of many types of private companies.
In general, comparing the bank to the fixed deposit (FD) in the financial institute, you get less interest from the bank than the companies. But you do not face any kind of risk from the banks. Because nowadays all the banks are under the government of India. And the amount of money deposited in any bank in India up to one lakh rupees is guaranteed by the Government of India itself.
If you talk about housing finance companies, then from these companies you get a little too much interest as compared to the bank. But the risk on the money deposited in private companies and housing finance companies also increases a little.
Because normally we get a fixed deposit account (FD). that we can get more interest on our deposits. And our deposits are also safe. Therefore, it is advisable for the Reserve Bank of India to make fixed deposits (FDs) in list banks as compared to companies providing one or two per cent more interest. But that doesn’t mean it. That all private companies are drowned. But the risk in these companies increases a little compared to banks.
How many days should you have a fixed deposit account (FD)?
If you’re having questions in your mind. For how many months should we deposit our money in the Fixed Deposit Account (FD) account? So you need to know this before depositing the money in the fixed deposit. When you may need money in the near future. Because if you withdraw the deposited money in the fixed deposit by breaking it before maturity. So in such a situation, the bank also deducts some extra charges from your account. Therefore, before depositing the money in the fixed deposit, you should calculate your money requirement in the near future.
What is the disadvantage of breaking fixed deposit account (FD) before maturity?
As we all know, the fixed deposit account (FD) is damaged when broken even before it gets maturity. Suppose you make a fixed deposit (FD) for 1 year. And you break the Fixed Deposit Account (FD) within 6 months. So you will get less interest on breaking a 1-year fixed deposit account (FD) within 6 months as compared to a 6-month fixed deposit account (FD). At the same time, some penalty charges will also be deducted by the bank for this.
So if you want to make a fixed deposit (FD) for 1 year. But you think. Maybe after 6 months, you may need money. In such a situation, if you want to make a fixed deposit (FD) of one lakh rupees. So you should make four different fixed deposits (FDs) of 25, 25, 1000. So that if you ever need to, you do not have to break all your fixed deposits. At least the amount in these FDs has to be broken as per the need. This will benefit you.
On the other hand, if you have money in your Fixed Deposit Account (FD) account. And you need the money. So you can also get a loan on your FD account. Banks provide you with a fixed deposit (FD) account at an interest rate 1% higher than the interest rate you are offering. In this way, if we look at it, then if you take a loan on your fixed deposit. Your fixed deposit account (FD) is also safe. And your work goes on too. And if you look at the ovul, then you will benefit from breaking the fixed deposit and taking a loan on it.
Documents required to open a Fixed Deposit Account (FD) account:
If you want to open your Fixed Deposit Account (FD) account. So you will need the following documents –
- Passport Size Photo
- ID Proof
- Address Certificate
- PAN Card Copy
- Cash amount or amount of money to be made FD. his cheque
- Fixed Deposit (FD) Form (obtained by bank)
How to Get a Fixed Deposit Account (FD):
If you want to deposit any of your funds in the FD account. So you can easily deposit the money deposited in your bank account in the Fixed Deposit Account (FD).
- For this, you will have to visit a bank close to you with the necessary documents. and information about Fd has to be obtained from the bank. The most important information here is necessary about the interest being provided on fixed deposits.
- After getting all the information, you will have to fill the fixed deposit account (FD) form and deposit the amount or cheque to be deposited in the fixed deposit in the bank.
- After that, your FD will be made by the bank.
With this, there is an era of internet nowadays. If you want, you can deposit the deposit in your savings account or current account in the Fixed Deposit Account (FD) account sitting at home through internet banking.
Note : While making a fixed deposit (FD) in a bank or a private institution, you should go with two to three people if possible. And the Fixed Deposit Account (FD) certificate should be read very carefully. The correct name, rate of interest, date of maturity are all written correctly on the certificate as per your instructions, whether or not. It’s very important to see it. Along with this, the nominee details in the bank should also be checked carefully. So that you do not have to face any problem while making a claim.
How to find interest rate offered by different banks on fixed deposits:
The most noticeable thing while depositing money in a fixed deposit account is the interest and time taken on your money. Nowadays fixed deposits in all banks vary on the interest paid on the account. If there is a difference of 0.25% in these interest rates. Yet, this difference has a significant impact on the amount deposited in the fixed deposit account. Therefore, it is extremely important to collect information about the interest rate before depositing it in your Fixed Deposit Account (FD).
But it’s a little bit of a hard job. How to get information about the interest paid by all banks on fixed deposit account (FD) account? For this, moneycontrol.com website is being run by CNBC Aawaz Business Channel. Which explains the interest rate offered by various banks of India on fixed deposit account (FD) amount. You can get information about the interest received by all banks on the amount of money deposited in your Fixed Deposit Account (FD) from here.
So what is fixed deposit account (FD)? Interest on FD, loss from premature breaks and some important and necessary information about FD account. Please tell us how you liked this information. Also, if you have any kind of question, comment in the comment box below. We’ll answer your questions soon. Thank you..
