Some myths about Fixed Deposit which does not exist

A fixed deposit is the most common way to invest your funds.
It is by far the safest option to invest your funds.
However, people are not aware of a fixed deposit, as there are certain misconceptions around it,
that govern the common people's minds. Some of the myth are listed as follows:
MYTH1:
Fixed deposit is all about big funds- It is usually believed by people that,
an FD requires a large fund to be deposited with the Bank.
However, this is just a myth since an FD can be made even with a minimum amount of Rs 1000.

MYTH2:
FD is offered only by Banks- Another myth that is commonly heard of is,
that an FD can be deposited only with the Bank. Indeed, Banks, as well as NBFCs,
allow FD with them.

MYTH3: Regular withdrawal is a good idea- It is commonly believed that regularly withdrawing from a bank,
would be of help. However, by doing so, the benefit of compounded interest gets reduced.
Thus, regular withdrawals are not advisable. 

MYTH4: Premature Withdrawals during Urgency: Many believe that they can easily pre withdraw funds
from their premature FDs in case of emergencies.
However, premature withdrawals can bring in unwanted charges imposed in the depositor's account.

MYTH5:
Closing FD takes effort: Though it may charge cost, the process to close an FD is not difficult.
Indeed it is effortless and easy.

Thus, it's important to be aware of the realities, and do not believe in the myth, to invest your hard-earned funds wisely.

Continue Reading: Debunking a few Fixed Deposit Myths

Comments

Post a Comment

Popular posts from this blog

Get all set for your retirement plans | Invest in a secure Fixed Deposit @Myloancare

Image
Peaceful and relaxed retirement life is a dream of most people. To achieve the best retirement life, ideally, you would like to finish your career at a sharp point. For retirement, the Fixed deposit is one of the great investment options, especially in the 60s due to the high rate of interest available for senior citizens. 4 things that you need to keep in mind when you are retiring are: 1. Make Catch-up Contribution : After retirement, you will no longer be able to contribute to your retirement account. Thus, make sure you make some extra contribution to your retirement account, especially during the last few years. 2. Calculate Social Security Benefit: Along with your retirement account, you will also have social security benefits. So, assess the amount you will receive from there and analyze whether the combined amount of your retirement account and s...
Read more

Learn major facts related to FD

Image
An FD is an ideal means of investment to enable one’s financial security. However, people often fail to understand its importance and its correct use, especially at the time of financial distress. In times of the credit crunch, many people will tend to break their FDs to generate funds, though this is not a wise decision to manage one’s financial crisis.  Many people are not aware of the fact that an FD can be used to take a loan. This is a convenient and feasible option that provides a variety of benefits. These are listed below: Amount of loan: The loan sanctioned against an FD is granted on 70%-95% of the Fixed deposit’s value. Thus, the loan can be quickly paid off.  Interest rate and processing fees: The interest rate and processing fees charged against a loan on FD are comparatively less because the borrower is already a customer of the Bank.  Tenure: Unlike other loans, there is no fixed tenure imposed...
Read more

Ways by which we can improve our retirement planning

Image
Retirement is such a period that involves proper planning. The people are often perplexed and juggling between savings or enrolling in an insurance plan.  Proper planning always helps Knowing yourself is essential. Be honest with yourself. It would help if you asked yourselves questions. What kind of life do I want to build post-retirement? How much Income would I need?  In the case of a salaried class or working professionals, don't forget to take the benefit of the company policy of retirement planning.  Keeping in mind the inflation rate is very important. So, we need to keep in mind and plan a strategy accordingly. Having a diverse investment portfolio is a good option. Having an fd, rd, and a five-year plan at the same time can be worthy. Introducing a habit of savings from a young age can be a useful habit. Ulip Plans: The safe and secure form of investment without much risk. The best part of that it involves the use of equity. Equity funds do ...
Read more