I am travelling overseas and would not need the cash i have in my bank account. I wanted to opt for a fixed deposit for a short period of time (a couple of months). Will I get better interest rate than my regular savings bank account? How is the interest rate calculated?
If you are planning to invest in fixed deposits for less than 3 months, it is important to know that interest payable is calculated by the banks on a daily basis rather than on a quarterly, half yearly or annual basis. So you can go ahead with a fixed deposit of two months. Assuming you have a normal savings bank account offering a rate of interest of 4% per annum, you can get a slightly better rate for a short term FD.
There are many banks and financial institutions that offer attractive interest rates for 1-year Fixed Deposits (FDs). Time deposits are one of the best investment options that offer a guaranteed rate of return after a certain set period of time. It is considered a safe and reliable type of investment for cautious investors who do not want to take risks.
In a deposit account, a certain sum of money is deposited for a predetermined tenure, and interest can be earned on the same. Investors can choose from a wide range of term deposit options available in the market. There are short, medium and long-term fixed deposits. Opening a fixed deposit account is a simple process and can be done online with minimum documentation.
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