Fixed deposit savings or investments have long been Singaporean’s preferred investment instrument. There’s a good reason behind this. Fixed deposits have grown over time into highly versatile and adaptable financial solutions providing various advantages.
A fixed deposit is one of the most secure investment options banks offer. It offers investors a good interest rate, guaranteed returns, and other perks such as liquidity, safety, etc. Fixed Deposits (FDs) can be a wonderful alternative if you seek secure investment plans that offer high returns.
High returns are proportionate to the level of investment risk. While there are currently various investment options with significant potential returns, they also entail a higher level of risk, which most investors are not comfortable with.
Fortunately, a few high-return investment options provide assured returns with virtually little risk. One such option is FD.
Let us look at four reasons why FDs are one of the best investment options for generating big returns:
Provides a secure (risk-free) investment
Fixed deposit is not like other market-driven investment tools. No risk is involved, so you can withdraw your money. Otherwise, you will receive an assured amount on the maturity date. You can readily see a fixed deposit rate online through a bank’s website.
Good returns are guaranteed
Although the return varies depending on the amount invested, a fixed deposit yield is frequently larger than a savings account. On the other hand, investing in a fixed deposit means receiving assured returns that are also high in value! You should keep in mind that, as much as possible, you should never break the fixed deposit in between because premature withdrawal can reduce your returns.
The best rate of interest
Fixed deposit interest rates are greater than savings deposit interest rates. Fixed deposit interest rates are higher than savings bank account interest rates in any cooperative society, bank, or financial agency.
A fixed deposit allows for investment term flexibility. This means you can set aside money for a specific time. This goes from a very short duration of seven days to a long tenure of ten years. Each cooperative organization or bank has its own fixed deposit tenure criterion. You must select the right period, so you do not have to make premature withdrawals.
Money during crises
A fixed deposit can assist you in any situation when money is needed immediately. Many financial institutions also provide a service through which you can obtain a loan against your fixed deposit.
With its benefits, investing in a fixed deposit can provide a steady income stream throughout the investment. Although fixed deposits offer low-interest rates compared to other investment instruments, the security and guaranteed return make fixed deposits a good alternative for people looking for a more traditional means to earn more money.
As you can see, fixed deposit is one of the best high-return investment options in Singapore for various reasons. But how much can you earn from your fixed deposit investment in a year? You can use an online fixed deposit rate to calculate your exact returns based on your fixed deposit amount, duration, and the bank’s interest rate.