When it comes to saving cash, many people opt for fixed deposits (FD) because they consider the risk-free and high-return benefits after the money matures. A fixed deposit is simply a financial instrument offered by banks with a higher interest rate than an ordinary savings account. In many parts of Malaysia, FD is one of the most likable and trusted investment options for its attractive fixed interest rate.
Below are the top four benefits of opening or having a fixed deposit account.
- Quite safe investment
Many people like fixed deposits for their interestingly low-risk nature. This makes it easy for you to save in the long-term and allows your money to give you the most bang for your buck over time.
- Capital Guarantee
Most FDs assure Capital Guarantee to all its depositors. This safeguards investors’ money in case a bank goes bankrupt. And it protects the money from any loss due to a recent risky activity the bank may have got involved in.
- Fixed returns
The fixed returns garnered from interests after the savings have matured are high, compared to gains acquired from other typical savings accounts. Also the longer you save cash in your FD, the more fixed returns you earn after it matures!
- Fast cash withdrawal
Bank fixed deposits provide great flexibility when it comes to liquidity. After your money has finally matured, you’re sure to get the specified amount you arranged with the bank. Although it’s worth knowing, money withdrawn before its maturity is subject to a fine because of a breach of contract. Wait for your cash to mature first as arranged with your bank to get attractive returns in the end.
Saving your cash in a fixed deposit account is among the easiest and smartest ways you can choose to make your money work for you while asleep. All you have to do is put some amount of cash in an FD for a stated period and wait for it to yield a fixed interest rate every year. Money to be paid is usually provided at the end of this particular period, which you’ve arranged with the bank. If you’re still reluctant about opening an FD account, the four benefits mentioned above might make you reconsider. Contact a few banks and compare their offers to get the best FD in Malaysia.