How many of you save money via fixed deposits? I feel they are the best when it comes to saving money. The banks offer a good interest and the best part is you cannot withdraw the money. It is a lot better option than the regular savings account which we normally operate day to day. Deposit your money and collect it at the end of the maturity period. Meanwhile, you can enjoy the interest generated.
Certificates of deposit were the way I saved the money for the deposit on my mortgage. It really does help that the money becomes inaccessible. I need to try and get back into the habit of starting them again. but the dilemma is that if i put the money in a brokerage account the potential return is a lot higher. but i can withdraw it in a matter of days if I want to. So which has the better real rate of return? It depends on how good my self control is.
Time deposit is the most common here for saving money in the bank since it is like an investment. You deposit money for a fixed term and earn a higher interest when you reach the maturity date. What's good in time deposit is that you can withdraw your money any time although the interest is very low if it is withdrawn before the maturity date.
Agree! Fixed deposit is a nice way to churn out good interest out of your savings. Keeping the money in regular saving account does not give a good interest and thus money does not grow. However, there's a downside as you cannot withdraw the money when required.
I do fixed deposits and I find that it helps alot to generate passive income whatever little it may be. I look at it positively because atleast that way I can maintain my account charges.
In my country, there is very little difference between the interest rate of a regular savings account and a fixed deposit account. I don't think it compensates for the fact that I am not able to withdraw my money if the need arises. For my money to earn bigger passive income from deposits, I've chosen to open a premium account in a reputable bank. The interest rate is 4x the rate given to regular accounts. In addition, I can withdraw the money when I need to as the account comes with both passbook and atm card. I haven't done that, though, as I have a payroll atm card to cover my expenses.
Normal fixed deposit interest rates in most of the financial institutions and banks is just around 12. This it more than the double of the normal saving interest rate. If you deposit more money for longer period, you can get upto 15 percent interest rate. I think if you don't want to take risk with business, fixed deposit is a good option.
