The Important Things That People Need To Know About Fixed Deposit
If you aren’t familiar with fixed deposit, it’s more popularly known as a time deposit account. It’s a type of deposits that actually offers higher interest rate, bu there’s the catch, you can’t touch your money on the agreed time like a year or more. This is a very popular option for people that has extra savings that doesn’t really know where they want to allot it to, here is the answer. You get to save and at the same time, grow the moen yas well too.
But this is not for everybody given it’s rules and this is what this article is all about. Surely you are tempted to get a fixed deposit account because of the higher interest rate and why wouldn’t you be? It’s a good investment, but before you jump right in you need to understand a few things and know a few things because it may be easy to open one but it’s hard to maintain it. As mentioned it’s not for everybody.
Why it’s not for everybody: A fixed deposit account is highly advised to people that has an extra that they set aside. If you have savings account and you still have money to spare every month even after the expenses were subtracted like rent, gas, bills and food, you are not in debt or in any serious financial trouble and if there is an emergency instances you have an insurance and savings that can even support you for years even if you get unemployed. Basically you’re financially stable and prepared, your bank will offer you to open a fixed deposit account.
There is a goal: The goal is to continuously and constantly deposit fixed amounts on a specified duration like 12 months. Each deposit in turn will get higher interest rates which will mature with higher amounts. So there is a challenge to make sure that you don’t withdraw your fixed deposits for any reasons. But don’t get it wrong, you can actually get your fixed deposits if there’s really a need but you have to give an advanced notice. So think hard because this might be a promising type of account but it has a condition that not all people can actually maintain.
It’s not strict: If you go way past the money part and you can actually assess to yourself that you do have some extra money to spare for a fixed deposit account, applying for one is actually very easy. Take OCBC bank’s requirement for example:
- You need to be 18 years of age and above
- You are a Malaysian, a permanent resident or a foreigner
If you wish to apply all you have to bring is RM 1000 initial deposit and an identity card or a passport.
A fixed deposit is just another term for a time deposit. It’s a type of account that yields more interest than a regular savings account but you have to stick to the given time and deposit amount in order to maximize its potential. The only downside on this type of account is that it’s not an account that you can get anything for emergency purposes and it’s only for the people that has the capacity to maintain a deposit on the agreed time and years. If you are looking for a good Malaysia’s fixed deposit promotion, OCBC has just the thing for you, inquire now!