Among various savings accounts, a Fixed Deposit is one crucial and reliable account that offers various bona fide benefits to the account holder. A fixed deposit is like a committed partnership; you serve each other till the time but have to break up when the situation becomes really tight. Thus, to help you know more about the importance of a Fixed Deposit account, we have come up with this blog.
|
|
Why is Fixed Deposit Growing Popular Among People?
An easy way to grow your money is through fixed deposits. Fixed deposits are preferred because they pay interest and can multiply your investments by two, three, or even ten times. But many people put too much confidence in fixed deposits and neglect to consider other financial alternatives. Thus, people are getting wise and opting for secure Fixed Deposit accounts.
Why do people need to open a Fixed Deposit Account?
There are a number of benefits a customer can enjoy with a fixed deposit account. Let’s learn about some of such advantages.
- Security to your funds
Since you will provide your large fund to the bank for a certain tenure, you don’t have to fear losing the money due to theft or natural disasters. Once you keep your fund in a fixed deposit and have your tenure completed, the bank will, at any cost, provide you with the principal amount and the interests after tax deduction.
- Long-term investment
Fixed Deposit Accounts have tenure from 3 months to 10 years, depending on the bank’s policy. Upon completing this tenure, you will earn some good funds which can be utilized for your dreams, like building a house, buying a property, etc. This, thus, makes a fixed deposit a long-term investment. Moreover, you can also enjoy lucrative interest on such savings.
- Service as per customer category
Banks have their own set of customers and their grouping. Usually, they are individual customers and corporate categories. The tenure, fixed deposit principal, and interest rate vary when the category varies.
[For detailed information, Read our blog 5 things to know before you open an FD account in Nepal ]
Salient Features a good Fixed Deposit Account in Nepal
Nepali people look for some reliable way to make profits, and among various options, Fixed deposits remain one. In fact, they are more into finding Online Fixed Deposit Account in Nepal.
While there are numerous banks in Nepal offering their fixed deposit account, it becomes an unnerving task to find the best one.
Let’s check on the features that will help you in finding the perfect match for your ideal fixed deposit.
-
Best Returns as per increase in time
Banks have openly said about their fixed deposit amount and multiplication of the amount with time. Hence, time becomes one crucial factor in determining the ultimate benefits of Fixed deposits. Further, you can just look into the bank’s fixed deposit feature and compare which time period is best for you. Thus, you must choose the time frame wisely as improper planning may lead to premature withdrawal and leave you with negligible benefits.
-
A Great Interest Rate
Low-interest rates are best for loans, but the savings account demands bigger and better interest rates. Thus, a fixed deposit account that has a lucrative interest, preferably 10 to 12%, will be your best fit. So, it is up to you how much you want to invest and how much you want to relish the interest.
-
Loans against Fixed Deposit
Most banks provide loans against fixed deposits to enable you to keep relishing the benefits you enjoy with fixed deposits before they mature for cash. In addition, a loan against Fixed Deposit is far better than a premature withdrawal. The loan interest, however, is in compounded form, so think wisely and take the loan against your Fixed Deposit.
-
Decent Penalty for premature withdrawal
The penalty for premature withdrawal is a certain amount of funds that an investor has to pay due to the untimely withdrawal of a fixed deposit. The amount charged as a penalty depends on the bank’s policy. Normally, the penalty is 0.50 % to 1.00 %. So, you should always check for a decent penalty so that it does not cost you much.
What can you reap from Sarbashrestha Muddati Khata?
NIC Asia Bank’s “Sarbashrestha Muddati Khata” is a premium banking product for individual and institutional customers where customers can deposit their money for a tenure of 3 months to 10 years. The minimum balance to be deposited is Rs. 2,500,000( however, it differs in customer segments).
With this account, you can enjoy DEMAT Account and Mero Share Charge Free for Five Years. Along with this, you get 3 insurance(Accidental, Critical Illness, Medical) benefits and 5 years of free Debit Card, Mobile Banking, and Internet Banking. Moreover, you can also avail a loan with an attractive interest rate of 10.05%.
If you want to get Sarbashrestha Muddati Khata for yourself, then you can Apply online.
Thank you for the information