FIXED DEPOSIT NOTES: A BETTER ALTERNATIVE TO REGULAR SAVINGS
by: JOHN DOE
on: DECEMBER 2, 2022
in: BLOG
Savings accounts are popular all over the world. However, Fixed Deposit Notes are a better alternative to regular savings accounts because they offer more returns than the average savings account, making it a more beneficial investment plan.
A fixed or term deposit is a tenured deposit where investors invest a certain sum of money for a fixed period at a predetermined rate of interest in a bank or financial institution. The rates for fixed deposits vary from one bank to the other but are usually higher than regular savings accounts.
Advantages of fixed deposit
1. Low risk
A fixed deposit is a low-risk investment instrument. As such, market volatility and risks does not affect it’s returns as much as it does other instruments.
2. Uncomplicated liquidity
In the case of an emergency, investors can easily liquidate their fixed deposit and release the funds for their use.
3. Interest Flexibility
Investors can get the interest sum of their deposit credited into their account monthly, quarterly, or annually, depending on their agreement with the provider.
Things to consider before choosing a fixed deposit plan
- Interest rate
This is a no brainer; it is important to always compare the interest rates offered by different financial intuitions before deciding. - Interest pay-out option
Check out the interest pay-out procedure of any fixed deposit scheme provider before investing. This is to ensure there are no complicated processes and delays in interest withdrawal. - Credibility
It is also very important to check the market position, value, and credibility of the fixed deposit provider before you invest. - Tenure
Consider the lock-in period of the fixed deposit to ensure that it matches your investment goal and time horizon. Guess what? Fixed deposits are available on i-invest in Naira and US dollar variants, click here to find out more.
