Fixed Deposit

Simply put, a fixed deposit is a fixed amount of money deposited at a financial institution, for a fixed time period and for a fixed rate of interest throughout the period. The rate of investment on it is decided by the financial institution, and it is usually calculated based on the principle amount and the tenure of the fixed deposit. Once the term is over, a fixed deposit matures and the principle amount is available for withdrawal. The general thumb rule about fixed deposits is that the longer the money is invested, the better the returns.

these deposits score over other investment options in many areas of comparisons. The primary benefit of these deposits is that they are very safe investments. these deposits of RBI regulated financial institutions - banking and non-banking provide a secure investment option. Even the most severe and harsh markets do not affect fixed deposits. A large number of people turn to these deposits as their long term safe investment option.

Because the rate of interest earned on these deposits is constant throughout the term period and compounded every quarter, the interest earned is available for withdrawal every three months. Few other investment products have this benefit. these deposits can hence be used as regular income generators.

Although the principle amount in these deposits is locked during the tenure, loans can be availed almost instantly by keeping the these deposits as collateral. Although not a preferred arrangement to seek a loan when you have money invested, it provides an option during emergencies.

Another advantage of these deposits is the option of going in for tax exemptions under section 80C of the Income Tax. Fixed deposits of a maximum of Rs. 1,00,000 for five years are eligible for tax exemptions. However, the income earned from through the interest generated on these deposits is taxable.

Although these deposits are not the only investment option that one should look at, in the long run, they are vital to maintain the balance of other medium risk and highly volatile investments. Investing in these deposits is one assured way of learning continuous returns for many years.

Financial Video
Equity

Equity is nothing but ownership; ownership in Business. Equity is the capital amount which is raised or contributed by the members or shareholders of the company.

The net worth of a company represents the ownership interest of the shareholders (common and prefered) of a company.Equity is the capital amount which is raised or contributed by the members or shareholders of the company. For the reason, shares are often known as Equities. For example, if you hold 10 shares of XYZ Company out of total 1000 shares floated by the company – you are 1% owner in XYZ's business. The net worth of a company represents the ownership interest of the shareholders (common and prefered) of a company.

read more...
Have Us Contact You
Name
City
E-mail
Mobile
Message

Client Login

Username
Password
Forgot Password

×

Advisor Login

Username
Password

×

Your Feedback

NAME
EMAIL
MOBILE
SUGGESTION

×

Fund Performance

This is a default modal in all its glory, but any of the styles here can easily be changed in the CSS.

×