5 Lesser Known Term Deposit Features

Term deposits are one of the best known and most widely used savings scheme available to Indian citizens. The reason behind this is easy to guess. Term deposits are the most secure investment program in the country right now. The payout at the end of the lockin period is a certainty. For people who don’t understand market-linked investments, term deposits are the safest bet.

But besides safety, there are many other features of term deposits that make them an investment darling of the masses. Following are a few lesser known facts regarding term deposits that make them a good choice:

1. Term deposits allows you to select from a variety of maturity period starting from 7 days to 10 years. Deposits for longer durations usually earn a higher interest rate. You can also gain tax benefits on deposits longer than 5 years in duration.
2. You get the choice to reinvest the interest earned back into your term deposit (cumulative) or have the interest deposited to your bank account at specific durations, usually quarterly. This either increases the maturity amount you get or lets you invest the interest in another source.
3. Depending on the term you select, you can choose to have your interest paid monthly, quarterly, half-yearly, annually, or at maturity. Four of these payment options, depending on your term, can give you access to the interest before maturity if you want to use the money to invest elsewhere.
4. Term deposits can be opened online in less than 10 minutes with your net banking account. You can get the initial investment deducted from your savings bank account, set the tenure and register nomination, all with the click of a few buttons.
5. You can link your term deposit and savings bank account for seamless integration at maturity. You will be able to view the status of your deposits and maturity amount.

So, if you have any extra cash to spare, don’t just put it in your savings account. Put them in a term deposit account today and earn more interest on your money.