Fixed Deposit Account Benefits

A fixed deposit account is a type of savings account whereby funds are deposited for a stated duration of time and a fixed interest rate is paid at the end of that period. This is one of the easier ways of making money work for you as it is a safe investment option when compared to other investment types like shares or the money market. It is very easy to open a fixed deposit investment account as all you have to do is deposit money into the account for a given period of time and it will earn interest for you.

Reasons for opening a fixed deposit account:

1. It provokes good savings habit. The money you deposit has to be in the account for a fixed period of time without you being able to make any withdrawals.
2. Investing in a fixed deposit savings account earns you a higher interest rate than depositing your money in a normal savings account.
3. Fixed deposit investment accounts assure returns for your investment.
4. In the event that your business has a cash flow squeeze, the investment account  can act as a fall back or used to meet your future cash requirements.
5. Interest can be payable annually, monthly or at maturity depending on the term you chose or you could use the money to even buy assets if you want.
6. You are able to choose how long you want to invest your money in a fixed deposit investment account ranging from 30 days to 10 years.
7. You have the ability to have more than one fixed deposit investment account if you want to save for different goals.

It is important to get the tenure right while investing in a fixed deposit account because making an early withdrawal of your money will lead to you being penalized

Summary

Article Name

Fixed Deposit Account Benefits

Description

A fixed deposit account is a type of savings account whereby funds are deposited for a stated duration of time and a fixed interest rate is paid at the end of that period.

Author

Giovanni

Publisher Name

Likemoney.co.za

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