CHOOSE THE RIGHT FIXED DEPOSIT BANK WHICH HAVE

HIGHER INTEREST RATE

PRESENTED BY: BANKBAZAAR.COM

Thanks to the economic melt-down that rocked the whole world a few years back, more and more number of investors want to

park their funds in safe financial instruments. So, many people choose fixed deposits because even experts consider them as

robust financial instruments.

Though depositors can earn better returns from fixed deposits than what they can earn out of their savings bank accounts,

some people who may be aggressive-minded may choose other options such as share market, Forex, etc. But these aggressive-

minded investors should not forget that stock and Forex markets are highly volatile and so, there are chances they may lose all

their money.

Of course, if these investors make a kill in the stock market or Forex, they can earn substantial returns which means thatreturns from a fixed deposit may not be as attractive as the returns from these markets. But the simple fact is that fixeddeposits can be the ideal investments for those who want to protect their funds or play it safe.

Before deciding to park their funds in a fixed deposit, people should consider a few points. Let us have a look.

EASY ACCESS TO FUNDS

• If you want to have easy access to your funds, fixed deposits may not be suitable for you. It is better you park your funds only in your savings account. You can also choose an appropriately short-term fixed deposit so that you can have funds at the right time. Nowadays, certain banks offer what are known as "Flexi-deposits" and in these types of deposits, investors can have the option of withdrawing funds as and when they want money.

INTEREST RATES

Very importantly, investors may certainly want to opt for a fixed deposit scheme that offers high interest rates. They should, therefore, do a proper research before choosing the right bank. Since interest rates may differ from one bank to another, investors should shop around and study the rates offered by various banks for choosing the bank that offers the highest rate. Banks that offer flexible type of fixed deposits may offer additional rates if no withdrawals are made in the middle.

At the same time, investors should not forget the fact that the interest rates banks offer may vary according to the duration of their deposits. In other words, investors should make the right assessment of their own situation and choose the right duration and the right bank so that they can earn the highest interest rate for the duration they have chosen.

Unlike in foreign countries, banking operations in India are closely monitored by the Finance Ministry and the RBI and so, banks may not fail here. So, depositors who choose to park their funds in fixed deposits need not have any qualms about the safety of their money. If they have huge funds, they can plan to choose a few top-paying banks and split their investments among these banks.

For making a comparison and choosing the banks that offer high rates of interests, investors can use the Internet because there are several review websites on the Net. But they should carefully choose a reputed website that makes available to them unbiased views.

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