Invest in Fixed Deposits for higher returns

By Sandun W - Sat Apr 07, 9:09 pm

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The main reason for investing in the Fixed Deposit is to get the high interested rates. While you are keeping your money with Savings Account, you will get 4.5% p.a. (It is standard for all the banks) as the interest rate for your money. It is very low compare to the Fixed Deposit (FD). Keeping money in the Savings Bank account is good when you have urgent needs, but if you know that there is no spending for the money, moving it to FD is the best option to get the highest rates. People tend to invest their money in property, share market and on purchasing vehicles commencing from last six months in the previous year as the interest rates offered by the commercial banks were relatively low.

Rupee liquidity in the financial market begun to tight from the beginning of the year 2012 and the financial institutions compelled to offer higher interest rates to attract customer deposits to bridge this liquidity gap. So it’s high time that you should consider investing your hard earn money on Fixed Deposits to get maximum benefits. Now most of the banks offer decent interest rates on Fixed Deposit and you can now invest money in a fixed deposit and draw interest on a monthly basis or alternatively make investments for a period of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years or even stretch the investment up to a period of 5 years. I will write about few banks where you can get the high return for your investment.

Comparison of Interest Rates offered to LKR Fixed Deposits

I have given the Fitch Rating each bank got, so that you can assess the risk involved in investing in the particular institution. The three State Banks offer 100% Government guarantee for your money in addition to the credit rating. Fitch Ratings Lanka is fully committed to serving you by providing the highest quality credit ratings. Credit Ratings clearly convey the default risks of various fixed income investment products offered to the public. Therefore, investors would be able to compare the risk and return offered by one investment against risks and returns of all other investment opportunities, and selects the most appropriate investments that meet the individual risk tolerances.

Higher Interest for Senior Citizens

The senior citizens of ours are to be taken care of by offering a good return for their savings as they are the most important segment of our society. So the rate of Interest paid to them is higher than the normal Interest paid on Fixed Deposit.

In this Awurudu Season all the financial institutions offer gifts and surprises bundle with more benefits to your savings. Step in to an Institution of your choice at the auspicious time for “Awurudu Ganudenu” with your loved ones and invest your money for a better tomorrow.

Sandun joined Lanka Help Magazine as a contributor in June, 2011. He has been consistently writing articles to our magazine. Many useful articles of this site are under Sandun's name.

Sandun W

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