In todays times when markets are as turbulent as they are unpredictable, it is sometimes difficult for many to even get positive returns on their investments. It is at such times when investing in a fixed deposit is much smarter.

A fixed deposit is essentially some money deposited in a bank or a financial institution for a predefined amount of time at a fixed interest rate. The deposited money cannot be withdrawn until the maturity of the deposit. It is one of the safer investment products when compared with stocks, mutual funds or company bonds.

The interest rate ranges from 7% to 10% depending upon different factors, which include the deposit amount, the term period, the kind of scheme, etc. One can invest in a fixed deposit scheme for a period of 12 months to a maximum of 5 years.

This scheme is a wonderful way to save for a future need. Even if one does not have any concrete plans for the money, it sure is a great way to invest. Additionally, for someone who does not believe in high-risk investments like mutual funds or stock markets, it is better to have a fixed deposit. Although an investment in the stock markets can give higher returns, it can be frustrating or time-consuming for some to be on a constant lookout for vagaries of the stock markets.

The high level of safety too makes fixed deposit schemes quite popular with investors. Along with robust growth, it also has some additional benefits wherein one can secure a loan in lieu of ones deposit. Most banks and finance institutions offer loans of up to 75% of the deposit value.

Anyone who wishes to keep aside some money for the future can go in for a deposit scheme. Earning members of the family, pensioners, businessmen or even parents of minors can make use of these deposit schemes. Several finance institutions also allow private companies and non charitable registered trusts to invest in fixed deposit schemes.