Is fixed deposit a one time investment?

SurekhagoreSurekhagore subscriber Posts: 16 Bronze Level Member

Is fixed deposit a one time investment?

Comments

  • DevikaManiDevikaMani subscriber Posts: 13 Bronze Level Member
    edited August 2021

    Fixed Deposit (FD) is the most widely used financial instrument in all banks and financial institutions (NBFC). The fixed deposit comes with a flexible duration period which is guarantees higher returns including the rate of interest. FD does not come in a one-time investment in the form of a lump-sum amount. You can invest in FD from 7 days to 10 years. The longer the deposit period, the higher will be the interest rate, and the higher the return will be generated.

    Depending on individual needs, a person may choose to monthly, quarterly, semi-annual, or annual interest payments. On the other hand, if one does not need regular income then, he can choose the reinvestment option. In the latter case, the interest rate is reinvested quarterly and is paid in maturity including the principal amount.

  • publicspeakerpublicspeaker Mumbaisubscriber Posts: 19 Bronze Level Member

    Fixed Deposit is a one time investment, If you want High returns You should opt for long term investment. But, this highly depends on individual needs and requirement.

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