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Reasons Why You Didn’t Get the Best Fixed Deposit Rate


Fixed deposit are pretty much like a savings account but with a higher return on the rate of interest. Fixed deposits thus help you save money and earn a profit at the same time. They are the safest form of investment. An individual can reap a decent profit on the maturity of investment. Fixed deposit helps you to save and achieve higher returns with the help from the bank.

Fixed Deposit

There are various banks and non-banking financial companies which provide the service of fixed deposit. The rate of interest differs from bank to bank. Thus you must select the right one as per your need. A higher rate of interest will help you to get higher benefits on the rate of interest. When we talk about fixed deposit, there are three important things that we need to keep in mind.

  • Amount deposited
  • Tenure for which it is being deposited
  • Rate of interested being offered

These are the three basic fundamental aspects that will determine whether your returns on investment are better or ordinary. Everybody who looks to invest in fixed deposit wishes to have the best return. There are several reasons why they don’t get the best-fixed deposit rate:

  • Deposit Amount:

A deposit amount as mentioned above is one of the instrumental factors that will determine the return on investment. Thus if you deposit a higher amount, the returns will be higher while a lower amount would yield lower returns. Make sure you invest as much as you can. The bank looks forward to your investment as they want to use the funds to maximize the profit. If you assist the bank with this, they’ll do it too by providing you sizeable return when your deposit matures.

  • Incorrect Tenure:

Tenure of the loan is one of the most important aspects when deciding the fixed deposit investment. A long tenure will help you yield higher benefit as the amount stays with the bank for a longer time and thus the return on the rate of interest is higher. It is essential that you select a proper tenure for yourself. And keep in mind that you must not withdraw the deposited amount prematurely; this will deprive you of the benefits. You’ll thus lose all the interest that has been accrued.[Read: 5 Time-Trusted Ways To Revive A Dying Business]

  • Not an old customer:

If you think why is the other investor earning more on the rate of interest than you are? The reason is simple. You are not an old customer. Loyal customers are offered with a better rate of interest than the new ones. These old customers are the preferential customers. Thus the increased rate of interest is exclusively for these customers.

  • No Fresh funds introduced:

You have done everything right thus far to secure a high rate of interest from the bank. But even after doing everything right as per the aforementioned points, you still don’t get a high rate of interest on your FD because no fresh funds have been introduced into the bank. Fresh funds don’t mean new notes or a paycheck that you received yesterday. It means the money that you have deposited in another bank. Bank often has a soft corner for people who bring businesses to them. Thus if you bring new money to the bank by withdrawing it from some other bank, it improves your chances of getting a higher rate of interest.

These are several reasons you need to focus on in order to get a higher rate of interest on fixed deposit. If you aren’t getting it right by now then probably you haven’t fulfilled any of the aforementioned conditions.

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