Money is essentially one of the biggest factors in everyone’s everyday life. Financial health is very important to each person that is why it is very important to take care of your financial health. Every person should be able to save for the future and deal with finance everyday.
Definition of Fixed deposit:
Just think if you could stash all the money gifts you received thru the year, forgot about it for a long time and then found it along with some other cash. Fixed deposits are somewhat relatively just the way like that. It is safe and secure with low chance funding that assists you to acquire interest over a certain period of time. Fixed deposit accounts in Singapore are offering a lot higher interest rate than those of the usual bank accounts.
All of the fixed deposit accounts allow you to place your financial savings away for a hard and fast quantity of time without touching it. The longer your money is within the bank, the better the interest fee you get. This is one way to grow your money over time.
How does it Work?
Accounts for fixed deposits work similar to some other interest bearing bank deposit accounts except that they have got a specified maturity date and the funds can nott be withdrawn in the course of the term of maturity. Mostly, the more lengthy the tenure is and the more the fixed deposit amount is, the higher the interest fee that you will earn. The interest rates are most commonly applied quarterly or annually.
- Rule of 72 is a way to decide how long an investment will take to double itself primarily based on a fixed annual price of interest. Simply divide seventy two by using the annual charge of return and you’ll get an estimate of how many years it’s going to take for the initial investment to double. commonly, if you invest $10,000 at an annual fixed interest rate of 2% p.A., it will 36 years with a view to double your original funding.
When can you withdraw?
Fixed deposits can be withdrawn before the tenure is up but you can incur an early withdrawal rate or lose the interest income that you have already earned. Most of the banks in Singapore do not charge any costs while the withdrawal is made within 30 days after the starting of the account but other phrases and conditions may additionally apply relying on the financial institution policies.
Are foreigners allowed to deposit in Singapore?
Local Singaporeans and foreigners alike can open fixed deposits in Singapore. However, if you are a foreigner who wants to have fixed deposit accounts, you will need to present to them your passport, your proof of residency, employment pass or dependent pass, long term visit pass, student pass or whatever the bank requires you to submit. There might also be different requirements for different financial institutions. Some banks also offer higher interest fees for the generally known overseas currencies like Australian dollars, US dollars, British pound sterling, Euro, etc.
Reasons to Open a Fixed Deposit Account:
- You have a huge amount of money which is not earning anything that is in your savings account. It will be better to put it in a fixed deposit account to be able to earn interest rates. This way, your money will not be stagnant in just a certain amount but is still earning if you put it in a fixed deposit account.
- You want a truly risk free funding option. This way, no matter what happens to the bank, your money, along with the interest rates earned will be nonetheless protected as there is upto $75,000 deposit insurance scheme.
- You are interested in a regular cash flow wherein interest rates are being paid out often every quarter or every year.
- You want liquidity to your investments. A partial or full withdrawal of fixed deposits may be completed at any given time so your cash is usually converted. You just need to be aware that you may lose out on any interest to be paid if the money is withdrawn immaturely or before the fixed deposit reaches its complete maturity.
The Best Time to Open a Fixed Deposit Account
- Look out for a promotional deal from the bank before you do your committing. Always remember that as soon as your money is in a fixed deposit account, your cash is stuck until the maturity date of your account except if you chose to receive partial or even no interest rate by for early withdrawals.
- Be sure to recollect your opportunity costs, wherein in the case of fixed deposits, know that the cash might have been invested in better yield products or even spent on a few other investment assets.
- Banks have promotional quotes that can alter every month, you should know the best time with the best promotional offer before doing the fixed deposit account.
- Banks usually offer 2.5% interest rate over a period of time but it should be not less than a certain amount. Always make sure to read the guidelines of each offer before you go ahead and sign in for anything. It will be very helpful to go straight to the bank and inquire about all the questions that you have in mind.
Besides the fixed deposit accounts that are good for low risk investment, there is also Singapore Savings Bonds that can be another way of investing. They have a lot of similarities that they both involved putting in a fixed amount of cash for a certain time to earn an interest rate. Singapore Savings Bonds have a higher interest rate than that of the fixed deposit accounts.
Singapore fixed deposit promotion can give you a great option in how to save your money to earn a significant amount of interest rate. If you are wanting to get an instant loan, you can reach out to us through our website.