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1) FD is safe investment option.

2) Return on FD is predefined irrespective of market fluctuations.

3) It gives higher rate of interest than a normal saving account.

4) It provides an investor the flexibility of breaking it prematurely (Subject to some penalties).

5) The interest given on FD is tax free up to a limit.

6) On maturity, it provides the flexibility of direct credit the amount of principal and interest, in customer's bank account.

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โˆ™ 2015-08-11 03:13:23
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โˆ™ 2008-12-11 11:42:24

Below are some advantages

1. Extremely Safe

2. Earns you a Decent Rate of returns

3. Guaranteed returns

4. You can pledge your FD and get loans at reduced rates

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Q: What are 5 advantages of fixed deposit?
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Related questions

What is the disadvantages of fixed deposit?

what is the disadvantages of fixed deposit

Fixed deposit is fixed asset or current assest?

A fixed deposit in the name of a firm is not a fixed asset.

What is Accounting entry of interest on fixed deposits?

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What are the different types of fixed deposits?

Recurring deposits, fixed deposit, saving deposit

How do you write letter for bank fixed deposit?

I want letter for bank fixed deposit

Highest Interest in which deposit - recurring deposit or fixed deposit?

how to calculate Recurring deposit interest ?

What is the difference between fixed deposit and non convertible debenture?

fixed deposit has its fixed term, but debenture does not have any term. fixed deposit can be invested in eqty,debt or any other , but the debenture is debt only.

What do you call a portion of a bank's deposit that are not loaned?

fixed deposit

What are fixed deposite accounts?

In the case of fixed deposit account, the deposit is made for a fixed period and the money deposited can not be withdrawn before the expiry of the period fixed or before giving an advance notice to the bank, fixed deposit carries a higher rate of interest rising with the length of the period and the amount of the deposit.

Is fixed asset a current asset?

fixed deposit is an assets

What is fixed deposits?

A Fixed Deposit is an agreement between a customer and bank wherein the customer agrees to deposit a fixed sum of money for a specific duration of time. The bank in return accepts the deposit and offers to pay the customer a fixed interest which can be received on a regular basis or at the end of the deposit. Lets say you deposit Rs. 10,000/- to ICICI Bank for 5 years, and the bank offers you a 8% every year, you will get Rs. 800/- every year for having the deposit with the bank. You can opt to get this Rs. 800/- every month or choose to get Rs. 4000/- at the end of 5 years.

How do you claim fixed deposit?

Every Fixed Deposit will have a certificate linked to it. The bank would issue you a certificate that is the proof that you have a fixed deposit with the bank that is worth 'n' rupees and matures on 'x' date. You need to carry this back to the bank and submit it and ask for cashing your fixed deposit. The bank will accept the certificate and pay you the cash that is due for the deposit.

Who are the targeted customer for fixed deposit in India?


What is loan against fixed deposit?

Fixed deposit is the case in which you deposit the amount for a particular time period. Now the loan which you get against your deposit is a specific amount of money which is differ according to bank policy.

How do you write a letter to bank manager for closing fixed deposit?

To Manager Subject: Closing Fixed deposit account. This is to inform you that, My Fixed deposit will mature on 01/12/2012, Kindly request you to transfer the fixed deposit to my Saving account, details are mention below. Name: Saving bank account: your faithfully *****

What is a corporate fixed deposit?

A deposit made by investors with corporations for a fixed time period, for a predetermined/agreed upon rate of interest is called a "Corporate Fixed Deposits"

What are the advantages of a fixed deposit?

A FD Account is one in which the customer deposits a big sum of money (Usually a few thousands and upwards. There is actually no limit to the amount of money you can deposit in a FD) for a fixed duration of time (Atleast 3 months or higher). Since you agree to keep the money deposited with the bank for a fixed/agreed upon duration, the bank gives you a very good interest as payment for keeping the deposit The advantage is the fact that you earn a very good interest on the money you place as a fixed deposit

What is DD and fixed deposit?

Dunkin Donuts

Fixed deposit is current asset or fixed asset?

Fixed deposit is under fixed assets. Under fixed assets, there are 3 category that is tangible fixed assets (land, machinery, dll), intagible fixed assets (pattern, franchise, dll) and investment (fixed deposite,dll).

What is meant when one says the are making a fixed deposit?

A fixed deposit is a loan arrangement where you place a specified amount of money into the name of the account holder. A fixed deposit generates a fixed amount of interest over a period of time and cannot be withdrawn for a specified period of time.

How do you withdraw from a fixed deposit account?

You cannot withdraw from a fixed deposit account without cancelling the note, which will likely incur a cancellation fee...

Is interest on fixed deposit an expense or income?

To the depositor, it is an income but to the bank or institution providing the fixed deposit as a product, it is an expense.

What is a CD at a bank?

A CD is a certificate of deposit which is a time deposit savings with fixed terms.

Why fixed deposit is called as pledge?

A fixed deposit is called a pledge, because it is an agreement that is made. The agreement is a certain amount of money will be deposited on a regular basis. It is a promise or pledge to make the deposit.

What is the minimum deposit in a fixed deposit?

minimum deposit is the maximum amount you can spare after you save enough to manage your daily needs