Fixed deposits are a high-interest -yielding Term deposit and offered by banks. It is a safer investment option when compared to other investment types such as shares or the money market. Opening a fixed deposit account is both quick and easy and all you have to do is to deposit money into the account for a given period of time, for it to earn interest for you.
Below are reasons why you should open a fixed deposit account today:
1. It encourages a savings habit as the money you deposit needs to be in the account for a period of time without you making any withdrawal.
2. Investing in a fixed deposit account earns you a higher interest rate than depositing your money in a savings account.
3. You are assured of returns for your investment.
4. The account helps to act as a fall back for your business in the event of a cash flow squeeze or can be used to meet your future cash requirements.
5. Interest is payable at maturity; annually or monthly depending on the term you chose or you could use the money to buy assets if you want.
6. You get to choose how long you want to invest your money in a fixed deposit account ranging from 30 days to ten years.
7. You can choose to have more than one fixed deposit account if you want to save for different goals.