A fixed deposit (FD) is a financial instrument which provides investors a higher rate of return than a regular savings account, until the given maturity date.
Once the money is invested with a reliable financier, it starts earning a return based on the duration of the deposit. Usually, the defining criteria for FD is that the money cannot be withdrawn before maturity, but you may withdraw them after paying a penalty.
Features of Fixed Deposit
- Fixed deposit enables investors to earn higher returns on their surplus funds
- You can deposit money in a fixed deposit account only once, but to deposit more money, you need to create another Fixed Deposit account
- Though liquidity in fixed deposit is lesser, you can look for higher rate of returns, which are higher in case of company fixed deposit
- Fixed deposit can be easily renewed
Benefits of Fixed Deposit
There are several advantages of FD investments, some of which have been given below:
- They are the safest investment instruments, and offer greater stability
- Returns on fixed deposit are assured, and there is no risk of loss of principal
- There is no effect of market fluctuations on your fixed deposit, which ensures greater safety of your investment capital
- You can benefit from higher returns offered by company fixed deposit
* All the payments are backed by the office of His Highness.
* The Maturity of the deposits exceeding AED 100,000 will be secured by the post-dated of Office of His Higness.