Opting For The Fixed Term Deposits
Fixed term deposits are a safe way of investing your surplus sums. These give you assured returns for the time period of the investment. These are generally opted by people who do not want any risk on their investments and want to get guaranteed periodic returns. For this purpose, the money is locked away in the form of fixed deposits with any banking or financial institution. The people opting for these know beforehand what is the amount of return that their investment can bring them and how often.
These products can be designed in different ways, keeping in mind the requirements of people of different age groups and occupations.
Some of the main criteria over which the term deposits may differ from one to another are:
1.Period of the term deposit: You would invariably find these plans to be of maturity as close as one month and as distant as five years, generally.
2.Rate of interest: The rate of interest to be paid to the plan takers can also vary from one institution to another. The elders might be offered a bit higher rate of return through the especially designed elders term deposit. Generally, the rates are benchmarked with the central bank rates but it left on the institutions whether to follow these or not.
3.Choice of receiving the sums in different time periods: The policies may or may not give the choice of getting the assured returns to the clients. If they do, then the companies might have to choose from a four weekly, quarterly, six monthly or annual rates of simple or compound interest.
4.Withdrawal before the maturity period: The term deposits plans also allow you to withdraw the funds before the maturity period subject to some of their conditions. These conditions could vary from one plan top the other. Invariably you might have to wive off some or all of your interest received.
5.Opening balance requirements: You are also required to open the elders term deposit account with some minimum amount of balance in your account. This account could also be the savings one and the fixed account can be linked to it.
6.Tax treatment: While opting to take these plans, it is also important to see whether these are taxable in the hands of government or not. Generally, these are not taxed. Especially the returns on the elders term deposit are tax-free.
Fixed term deposits have always been liked by the common man and the investment wizards. Out of surplus sums to be invested, some risk free investments can be made to make sure that you keep getting some fixed returns and the rest can be invested in medium to high risk plans where the chances of greater returns exist. You can make a choice of the right plan for yourself by analysing the differing features of these plans. There are online websites, which can show the comparison charts of the plans offered by various companies and their respective rates and other features.
This article is written by Term Deposit which is a licensed securities dealer regulated by the Australian Securities and Investment Commission (ASIC).It is designed to help you find the best elders term deposit in Australia.
For information on Amp Term Deposit you can visit us at: http://www.termdeposit.com/