Types of investment - Bank fixed deposit
BANK FIXED DEPOSIT A fixed deposit is an instrument which gives a higher rate of interest than a savings account, but the deposit has to be for a specified time period, for example, 7 days, 1 year, 2 years and so on. In India, a Fixed Deposit can be made for amaximum of 10 years. For fixed deposits greater than 1 year, interest is compounded quarterly. People are attracted towards fixed deposits because they offer fixed returns. The interest rate is fixed in the beginning as per the terms and conditions of a particular bank and is valid till maturity of the fixed deposit. Types of Bank Fixed Deposit Depending on the need, one can opt for a normal fixed deposit wherein a certain deposit is made at a fixed interest rate which holds till maturity, or one can opt for tax saver fixed deposits wherein the deposit has a lock in period of 5 years. In case of a Tax Saver FD, the deposit cannot be liquidated before 5 years. Senior Citizens are offered higher in...