Fixed Deposit - Features, Types and Advantages - PowerPoint PPT Presentation

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Fixed Deposit - Features, Types and Advantages

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Fixed Deposit is investment in which you deposit money in a bank for a fixed lock-in period. Learn more about what is a fixed deposit, its types and advantages. – PowerPoint PPT presentation

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Title: Fixed Deposit - Features, Types and Advantages


1
Fixed Deposit Features, Types and Advantages
(C) Axis Bank Ltd.
2
Whats a Fixed Deposit?
  • A Fixed Deposit can be defined as an investment
    in which you deposit your money in a Bank for a
    fixed lock-in period.
  • In return, the Bank gives you an interest at a
    specified rate and that interest is added to the
    original deposit while paying the accumulated
    amount to customer at the time of maturity.
  • Banks also give you the option of periodic
    pay-outs in the form of monthly and quarterly
    interest payments if you intend to use that
    interest as a source of regular income.
  • Minimum amount Rs. 10,000
  • No maximum amount specified for deposit.

(C) Axis Bank Ltd.
3
Interest on Fixed Deposits
  • Banks offer both fixed and floating rate of
    interest.
  • Fixed rate of interest is unaffected by any
    change in market rates and stays constant during
    the deposit term.
  • On the other hand, floating interest rates vary
    as per the market rates and keeps changing
    throughout the deposit term.
  • For any fixed deposits below 6 months, Banks use
    simple interest while paying the sum at maturity.
  • While for any deposits above 6 months in tenure,
    the interest is calculated using compound
    interest and it is compounded quarterly.

(C) Axis Bank Ltd.
4
Types of Fixed Deposits
  • Bank Fixed Deposits
  • Bank Fixed Deposits are made with Banks.
  • Lower risk and comparatively lower interest
    returns
  • Great liquidity options.
  • Flexible lock-in periods.
  • Corporate fixed deposits
  • Corporate Fixed Deposits are made with companies
    who are looking for people to invest and fund
    their business.
  • Higher risk and comparatively higher interest
    returns.
  • Liquidity options are not great.
  • Lock-in periods are not as flexible.

(C) Axis Bank Ltd.
5
Advantages of Investing in Fixed Deposits
  • Advantages of Investing in Fixed Deposits
  • Negligible risk
  • Assured Returns
  • Capital Appreciation
  • Flexibility of parking additional capital for
    small terms
  • Tax benefits for 5-year deposits

(C) Axis Bank Ltd.
6
THANK YOU
Visit www.itsallaboutmoney.com to know more.
(C) Axis Bank Ltd.
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