Term deposits allow you to get a guaranteed rate of interest over a pre-defined period. This tenure can be for long periods like 5 years. Once you book a term deposit for a minimum amount of Rs 10,000, the promised interest is credited to your account at regular intervals. There is no market-linked volatility. There is no fear of value of the original investment getting reduced. It is like dealing with a friend whom you trust and who values your faith.
There are a wide variety of options to suit your income needs, including short-term deposit, reinvestment deposit, simple fixed deposit, and Recurring Deposits. Interested. With Standard Chartered, you get an option to open recurring deposits for a tenure as short as a year . You can open fixed deposits online seamlessly through online banking, within a few minutes.
Do remember that the interest income from bank fixed deposits is fully taxable. Banks also deduct tax at source (TDS) at the rate of 10% if the interest income for the year is more than Rs 10,000. In addition to this, Standard Chartered’s Term deposit and Recurring deposit products offer senior citizens with higher interest rates.
Apart from term deposits, there are many interesting bank accounts that can help you generate regular income. They are packaged with nifty features that help you avoid the hassles of opening, tracking and closing FDs. Such smart accounts are best-suited for executives and professionals who lead a hectic life. Yet, these customers don’t want to lose an opportunity to miss out on the benefits of FDs.
The 2-in-1 savings account allows you to earn high-interest rates like a fixed deposit, while simultaneously enjoying the flexibility and benefits of a savings or current account. Isn’t that wonderful? To know the domestic and NRO rates at Standard Chartered, click here. High rates do not mean you lose any flexibility. You can withdraw up to 95% of the amount from your fixed deposit linked to your savings account at any time.
Another interesting facility is the eSaver savings account. This Standard Chartered account moves your savings into term deposits to earn higher interest for you. It is like an automatic way of saving and investing. You can earn good income because you earn higher interest than a regular savings account, as your savings flow into term deposits when your account balance reaches a specified threshold.
Depending on your financial needs, you can easily use different options and combinations of bank deposits to develop a regular income stream. This income source can complement your existing salary or can even replace your income needs once you are retired. With zero risks of default and 100% guarantee of capital appreciation through interest, fixed deposits are a good way to save and earn.