Banks are financial institutions that can handle or manage money. Many people trust banks to safe keep their money whether for savings or for other investment. Banks are also known as the strong foundation of any economy. The strength of the bank is parallel to the country’s growth.
There are many schemes that you can consider when you think about savings. Have you heard about the fixed deposit? Fixed deposit refers to an instrument used by banks to provide investors with higher interest rate compared to a regular savings account. The investor can only collect the savings and the interest based on the maturity date.
You have to know that fixed deposit is considered a very safe investment. What makes these investments safe is that Deposit Insurance in Malaysia covers it. This means that the system will protect the depositors against the loss of insured deposits in the event of a bank failure. The terms will vary depending on the bank and the interest will be between 4 to 7 percent. The maturity can be from 1 year to as high as 10 years.
You should know the gains of best fd of Malaysia before considering it. Here are the gains you will reap over time:
The returns are assured
Many people are considering the advice of setting up a fixed deposit account because of the assured returns. If you invest your money, you will earn interest based on the tenure you choose.
The payments are flexible
The moment you apply for this, you will decide how you wish to receive the payment of your interest. You can decide to be paid monthly or annually. The best thing to do here is to wait for the maturity of the tenure and then reap it anyway the interest is calculated cumulatively.
In case of emergency
If you encounter emergency situations, do not worry because you can still use your fixed deposit. Although you cannot take it, your fixed deposit will serve as your tool to make loans. There are banks that will allow you to borrow up to 90% of your fixed deposit. At the end of the day, it will depend on your bank. With this, it is important that you ask questions first about this before you sign up.
It is not a risky investment
As mentioned earlier, fixed deposits are very safe. Many people prefer mutual funds than fixed deposits because it provides higher returns but it can be very risky. The fixed deposit can help you manage the risk because it the returns are set. You do not need to be anxious every month or year how much you will get because you already know how much you will exactly get.
It is easy to withdraw
If in the case you really need the money and not the loan, you are free to withdraw the money you already deposited but note that the bank may charge you for penalties.
More importantly, fixed deposits can help you develop the habit of saving. When you consider fixed deposit, do not be tempted to take any money unless it is the interest. Fixed deposit is all about self-control and patience.