The secured way to save money

All the individuals and organizations those who are willing to hold their savings for a certain fixed period of time for using it in future will save their money under fixed deposit. Most of the fixed deposits have a duration time of five years. It provides various types of benefit to the customers. It serves as the safest guard of the hard-earned money for the people and provides the customer the benefit to even withdraw their money before the maturity date without any trouble. If someone wants to avail a loan then the same person can get it up to 85% of the principal amount of the FD. In other words, one can withdraw loan against a FD. It also gives interest half yearly to its holders.

The money that is deposited under fixed deposit cannot be withdrawn until the duration is completed that is the fund cannot be used for the emergency purpose. Although if spoken in precise sense, it can be done but then certain percentage of your interest will be deducted by the authority.

Individuals open current deposit accounts in the banks to have the liquid cash in their hand. The main motive behind the opening of the current account is to get interest on deposit as it happens in the case of the savings deposit and term deposit but it helps to avoid from the direct handling of the cash, maintaining of the accounts, certification of balances. The minimum balance to open a current account is Rs.1000. The interest rates under current deposit accounts are very low. People generally keep their money under this account to meet their daily requirement.

The saving deposit are opened for the client by issuing a savings book to the client or a similar type of document which contains the similar thing. The client can deposit and withdraw money at any time. Though the savings deposit are very similar to the current deposit but there is a big difference between them. When the depositor withdraws the money from the savings deposit account he/she has to show a valid reason for its withdrawal but in a current deposit the depositor can withdraw the money at any time. That is why the interest rates in the savings account is usually more than the current deposit.

Thus, we see that all the types of deposit are very important and it depends upon person to person