Term deposits are the most well-known and widely used savings option for Indian citizens. This is because it is simple to understand why. Term deposits are currently the best investment program in the nation. The payout at the expiration of the lockin period can be guaranteed. Term deposits are the best option for people who don’t know market-linked investments.
Term deposits are not only safe, but they also have many other attractive features that make them a popular investment choice. Here are some lesser-known facts about term deposits that make them an attractive investment choice.
- You can choose from a range of maturities starting at 7 days up to 10 years for term deposits. Higher interest rates are usually earned by deposits that have a longer term. Deposits for longer periods than five years can be eligible for tax benefits.
- You have the option to either reinvest the interest in your term deposit (cumulative), or to have the interest deposited into your bank account for a specific period of time, usually quarterly. This allows you to increase the maturity amount or invest the interest in a different source.
- You can have interest paid at maturity, monthly, quarterly, semi-annually, annually or every other month depending on your term. Depending on the term you choose, you can have access to the interest at maturity or you can use it to invest in other areas.
- With your net banking account, deposits can be made online in under 10 minutes. With just a few clicks, you can have the initial investment taken from your savings account. You can also set the tenure or register nomination.
- For seamless integration at maturity, you can link your savings and deposit bank accounts. You can view the maturity amount and status of your deposits.
Don’t save any cash. You can earn more interest by putting them into a term deposit account.
Deposits are one the most well-known and widely used savings schemes for Indian citizens.
