Know about the best ways to invest your money in right banking products which gives maximum returns of your investments. Fixed deposit is one of the safest product to invest in. Read the document to know what is and why is Fixed deposit good option.

2. 

An investor, or depositor, will deposit a lump-sum
cash amount with a bank or equivalent enterprise,
for a pre-determined period of time. On this deposit
the investor receives interest, at a rate that is also
pre-determined. Interest rates depend on the tenure
of the FD as well as how the amount of money
being deposited.
Fixed deposits are popular predominantly because
they do not require the investor to deposit large
amounts of cash. In the stock market, lucrative
shares are expensive to purchase, whereas one
create a fixed deposit (or several) with more
affordable amounts of money.

3. WHAT IS EFFECTIVE RETURN IN FD?

Depending on the terms and conditions, the investor
may have the option of continually withdrawing the
interest amount, or he/ she will receive the amount as a
lump-sum at the time of maturity.

In either case, the depositor is guaranteed a certain
return on investment. These returns do not usually
amount to figures as high as in stock or equity markets,
but they are, at least, completely assured.

Another option available to investors is that instead of
withdrawing the interest, they may reinvest it in a fixed
deposit with higher interest rates. This option to reinvest
often yields more returns on the deposit than the
investor had originally calculated. This process is known
as 'effective return'.

4. WHY IT IS RIGHT TO INVEST THE MONEY IN
FD’S?

Fixed deposits are one of the few investment products
that are not subject to market risks and trends, as are
stock trading and mutual fund investments.

This makes them one of the safest investment vehicles
around, short of stuffing one's money in a mattress.
Because they are so removed from the activities of the
market, it does not require that investors have an
extensive knowledge of the financial world either.

5. WHAT ARE THE OTHER BENEFITS ?

FD involves blocking your money for a certain period of
time, but it can also be broken and its funds can be
withdrawn prior to the date of maturity. This feature
comes in handy either when better investment options
show up, or when there is an urgent need of money.

However, even when the investors break their fixed
deposit, they do not lose any of their original investment
capital. One might, on occasion, have to forfeit the entire
interest amount owing to premature withdrawal, but
usually even premature withdrawals attract interest
(albeit of a lesser rate than earlier). The investor may
also be liable to pay a certain penalty, which is typically
of a minimal amount.

6. IS IT SAFE TO INVEST THE MONEY IN FD’S?

Thus FDs are the ideal investment path for the
safer investor. Those who wish to enter the
investment waters but do not have the risk appetite
needed to play with the big sharks might want to
seriously consider stockpiling their money in an FD.
ADCB Fixed Deposit makes things easier for you.
With flexible tenures and guaranteed interest,
ADCB Fixed Deposit makes sure you don't miss out
on the little pleasures of life.