5 Common Mistakes to Avoid While Investing in Fixed Deposits
23 Dec 2022
Table of Content
Introduction
When investing, a fixed deposit fixed deposit investment features essentially in almost everyone's investment portfolio. This low-risk, stable saving lets you enjoy steady capital gains at the end of maturity. However, even fixed deposit investment demands careful planning. We will enumerate 5 common mistakes that people tend to make while opting for fixed deposit accounts.
Typical Investment Mistakes Fixed Deposit Investors Must Avoid:
Investing in a fixed deposit is a great idea, but certain factors must be kept in mind before rushing into a hasty investment.So, think, observe and read this blog thoroughly for fixed deposit investment tips and to know what to avoid when investing in fixed deposits.
1. Investing without a target
Fixed deposits are safe but optimize your saving with an investment plan. Your savings, other investments and fixed deposit if aligned can diversify and strengthen your financial goals. Read about different fixed deposit schemes and research online for the bank with the highest fixed deposit interest rate. Prioritize your investment goals based on factors like liquidity, stability, long-term or short-term lock-in and flexible tenure while keeping funds for emergencies. Your individual needs are best known to you, therefore planning accordingly will maximize gains on your fixed deposit investment.
2. Investment not backed by research
Your money counts, and with almost every bank sharing detail on fixed deposit schemes, thorough research will help you zero in on the bank with the highest fixed deposit interest rate. Go by the books and take the best-informed investment decision you can.
3. Not using a diverse planner
For a fixed deposit investment to succeed, the golden rule is not to play by one. Making multiple fixed deposits in the bank with the highest fixed deposit interest rate will culminate in robust returns. Evaluate both short-term and long-term fixed deposits when you are setting investment goals.
4. Not closely watching the investment progress
After investing in fixed deposits, keep a close watch on the growth trajectory of the fixed deposit amount every day. Only eyeing the maturity date is not enough.
5. Thinking FDs are immune to inflation
Even Fixed deposit investments are affected by inflation. Hence, tap the opportunity when high interest rates are offered on fixed deposits for investments.
To Calculate Fixed Deposit Interest Amount you can use - FD Calculator
Conclusion - About BOB FD
At present, Bank of Baroda is offering best interest rates on FDs across industry. For more details Visit BOB website for more product details.
Bank of Baroda has a range of fixed deposit schemes like:
- Baroda Tiranga deposit scheme callable and non-callable Retail deposits under Rs 2 crore for 444 days to 555 days with high-interest rates of 6.10 per cent p.a. and 6.35 per cent p.a.; for senior citizens 6.60 per cent p.a. and 6.85 per cent p.a.
- Baroda Tiranga Plus deposit scheme callable and non-callable retail deposits under Rs 2 crores for 399 days with high-interest rates of 6.75 per cent p.a. and 7.00 per cent p.a.; for senior citizens 7.25 per cent p.a. and 7.5 per cent p.a.
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The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
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