Fixed deposit rates basically depend on the fixed deposits or time deposits where a person deposits a certain amount of money in a specific bank and cannot take that money out for a certain period of time. The time period depends on the individual as well as the bank. Fixed deposits are the most popular forms of investments where a person can keep the money secure and get good returns depending upon the fixed deposit rates and the amount saved. Fixed deposits are maintained by both banks and companies. There are companies which automatically cut a part of the salary and put it in their own deposits which also multiply depending upon the company’s fixed deposit rates. It is always advised to create a fixed deposit account in bank as even though their fixed deposit rates might not be that high, but the banks unlike a company has very less possibility of shutting down and hence a the chances of loosing the money becomes nil.
The fixed deposit rates set up by various banks are highly calculated and hence reduces the risk of loosing out on the money while making sure that the investor gets the maximum benefit.
Another plus point of having a fixed deposit is that it gives one the option of either taking out the money as a lump some amount or get regular income out of it depending upon the fixed deposit rates. At the same time, due to the low returns based on the fixed deposit rates, the returns aren’t as high as of that from the stock markets where the interest rates keep varying.
The fixed deposit rates in India might be different from the fixed deposit rates in USA or the fixed deposit rates in Singapore as every country has its own bank regulation policies. At the same time, the ICICI fixed deposit rated might be different from the SBI fixed deposit rates as they are private or semi-private companies and have the right to decide their own fixed deposit rates.