Depositing money in banks is considered to be one of the safest ways of investment in today's uncertain times. Investors in stock markets and real estate have learnt it the hard way during the phase of the economic recession. The losses in such risky asset classes can be heavy, and can really affect the confidence of an investor. On the other hand, bank deposits such as time deposits and demand deposits have yielded steady and consistent returns. In case of demand deposits, a depositor is free to withdraw his money whenever he wants without giving any notice to the bank/financial institution with whom the deposit was made. Thus, these are flexible forms of investment. To know exact difference in time and demand deposits, you should study the time deposits vs demand deposits comparison. Now, what is time deposit? Let us know about it from the explanation given below.
Time Deposit Types
There are many examples of time deposits which can help you understand this concept. Here are the types of time deposits explained one after the other.
Renewable Time Deposits
Renewable time deposits are those deposits which will get automatically renewed on attaining the maturity date that is given by the bank. Renewable deposits help in multiplying investor wealth and increase their net worth substantially.
One-Time Time Deposits
One-time time deposits are deposits in which the depositor keeps money with the bank for a specific period and then withdraws the money along with the interest amount. Such deposit schemes help investors get big amount of cash, in bulk, which can be used in making big purchases.
Fixed Time Deposits
Fixed time deposits allow their investors to withdraw their entire money before maturing of the deposit, on payment of fees to the bank.
Flexible Time Deposit
Flexible time deposits are more advantageous as compared to fixed time deposits because here, you get higher interest rates from banks, and also the facility to withdraw your money partly before maturity.
Standard Time Deposits
Standard time deposits are the kinds of time deposits in which you have the freedom of setting maturity instructions and choosing your deposit currency. These are being offered by leading multinational financial institutions.
Term Deposit with Interim Interest
The best part of this deposit is the receipt of interim interest in the period of the deposit. Like in the standard time deposits, you can also choose your deposit currency and set your maturity instructions.
So, these were the several types of time deposits that can generate good wealth in the future. Smart investments made at the right age can help you secure your future financially and enjoy your life. So, take the right decisions and benefit from the exciting offers in the market.
