If you have decided to Invest your money in fixed deposits, you should understand what it entails and how much profit is it going to yield for you. Go through this post to choose better.
What are Fixed Deposits?
In simple word, when you receive a fixed amount of interest on a particular principle amount you have deposited in the bank, is called fixed deposit. This interest is received monthly, quarterly, or annually. Basic fixed deposit is the most popular type of fixed deposit that investors choose. Let’s delve deeper into this.
Bank FD vs. Company FD
Mostly people know what is bank FD and company FD is lesser-known as compared to the former. Money is deposited with the corporates, and upon the maturity of the CFD scheme you have chosen, money is returned with promised Interest rate.
While searching for best FD rates in India, tenure of the FD is another important consideration other than interest.
The range of tenure of bank FD can be as short as seven days and as long as fifteen years. On the other hand,
the minimum tenure of company FDs begins at six months and goes up to ten years.
Further, bank FDs allow you to open an FD account at much lower deposit amounts as compared to company FD.
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