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All You Wanted To Know About Company Fixed Deposits

By default, Indians are known to be risk averse. This tendency of them makes its way even into their financial decisions. Statistics show that 60% of savings of all Indians find its way into the fixed deposits. Obviously the concept of high security coupled with fixed interest investment is just too alluring a prospect for many Indians to avoid. It is hardly surprising then that most of the Indians tend to park their money in fixed deposits – be it bank FD or company FD.

Common Myths Associated with Fixed Deposits

Myth No 1. Fixed Deposits are offered only by Banks:

So even you thought that it was only banks that offer fixed deposits? Well! Well! Well! It’s the most common myth associated with fixed deposits and most people think Fixed deposits are offered only by the banks.

Various companies and financial institutions also offer fixed deposits. And though the interest rates offered by companies and financial institutions tend to be a wee bit higher than bank fixed deposits, they carry a higher risk simply because these are not secured.

Make The Bank Fixed Deposits work for you

Bank Fixed deposits area good way to generate money for the investor in the long run. They should however be used judiciously to get the maximum return. Mentioned below are alist of things that you need to do to make your Bank fixed deposits work for you:

Laddering of Fixed Deposits: What it is and How it can help your Investment

Bank fixed Deposits are the most preferred mode of investment most people in India. In fact most consider it the safest and steadiest way to save and grow money. However is it so steady?

Well, like any other asset class fixed deposits also go through several cycles annually. So to call them steady, is wrong. In fact based on the bank’s decision to raise the interest rate or truncate it, they go through ups and downs . The State Bank of India for example, increased the rate of interest on fixed deposit by 1% a couple of days before.

Fixed Deposit Rates of Different Banks in India

Traditionally fixed deposits have been the most preferred mode of saving in India. Due to the presence of large number of banks and the spread and reach of banking services, people trust banks investing their money in fixed deposits scheme. What makes these Fixed deposits attractive for normal people is the rate of return they get. It is not only good but also secure. However fixed deposit rates across different banks in India keep on varying. Presented below is a list of banks that provide high interest rates

Interest rates on Small Savings Hiked

Finally the small investor has got something to cheer about. The government of India raised the interest rate on the post office operated small savings like the Monthly Income Scheme (MIS) and Public Provident fund (PPF) by upto .5% with effect from April 1st.

Fixed Income Plans in India that You should consider Apart from Fixed Deposits

Fixed income plans are those that provide an investor with a fixed amount on maturity. Traditionally, the bank fixed deposits have been the preferred model of investing for most people who tend to save a portion of their income and then put it in the bank as fixed deposit. The reason why fixed deposits have been the most favorable mode of investment is that they yield a uniform and in general a higher rate of return. The fixed deposit rates of certain banks can be as high as 9.5%.

Gold ETF or Gold Fund: which is the best option to invest in gold?

Gold has traditionally been the most preferred way of making ornaments in India. However with avenues to invest in gold opening wit time, now gold has become a very preferred instrument to put one’s money on . And in volatile market that is existing now, it certainly makes sense to invest in gold as it adds stability to one’s portfolio.

Why Investing In Real Estate Is Always A Smart Decision?

With a wide range of investing vehicles available today, it becomes really important to understand, how better one is from the other and what implication can it have on one’s finances. Let’s try to understand the importance of investing in real estate in this context.

Investing For Retirement

Investing for retirement is a habit that should start early during one’s productive life. The benefits of the decision will always pay back during the retirement. It is imperative that if the same lifestyle that one is maintaining at the time of his productive life be maintained, then one has keep some of his earning for the retirement days. Apart from this, in the absence of regular stream of money flowing up after retirement, one need a substantial back up that takes care of a person’s need during the old age.

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