Important Things to Know Before Investing in a Fixed Deposit Scheme

It is important for every investor to understand different aspects of a fixed deposit account before investing in it. Essentially, these details help in choosing the right fixed deposit account to invest in. firstly, every investor should check the rate of interest on the FD accounts from different financial institutions. 

Furthermore, they must also select which type of interest pay-out they want. Usually, they have the option of monthly, quarterly, half-yearly or annual payments. Moreover, senior citizens and existing customers can enjoy higher rates of interest.

Investors should also check if premature withdrawal is possible on investment along with the charges levied in such circumstances. Having the option to opt for a loan on the fixed deposit account is especially of help since it allows a customer to avail of financial aid in case there is an emergency. 

Investors must also check the minimum and maximum investment options offered by financial institutions. It usually begins at Rs.25,000 and goes up to Rs.5 crore.

Tax exemption can be availed on both the principal amount invested as well as the interest earned in a fixed deposit account. Investors should check these details before investing to enjoy asset appreciation. Along with all these factors, investors should make it a point to calculate their exact earnings using a fixed deposit calculator to avail the most profitable option.

Also, Read This: FD Calculator: Calculate FD Interest Rates And Maturity Amount 2019