Fixed deposits are the most traditional way of saving money. While there are so many new ways of saving funds, there is a certain kind of trust that people have when it comes to holding funds in fixed deposits. One of the main reasons associated with a fixed deposit is that it is a very safe option and is easily accessible. These days you can also open a fixed deposit online without having to visit the bank. You don’t have to take out time especially to visit the bank for this purpose. Here are some of the main benefits of a fixed deposit account.
With opening a fixed deposit account, you also inculcate a savings habit which we often overlook. This is because in this type of account, you are required to deposit money at fixed intervals. Also, you cannot withdraw any amount of money till the maturity period. As compared to savings account, it is a fixed deposit account that offers a higher interest rate. In times of emergency, one can always consider it as an immediate means of liquidity. You can choose to save your money in a fixed deposit account as long as you wish to. This time period can be in the range of thirty days to ten years.
Many people also open more than a single fixed account to hold larger number of funds. This can be helpful for the purpose of achieving different goals. For example, you may want to open one account for the marriage of your daughter while the other one for savings in general. There are many banks that you can choose to open your bank account with such as Yes Bank, Axis Bank, ICICI Bank, and many others. Every bank offers a wide range of facilities, therefore, the best way to open a fixed deposit account is to engage in some research and then make a decision.