How Much to Invest in Bank Deposits?
Haven’t we all seen the ad of a little girl collecting coins from her grandparents and saving it all in a cute little piggy bank and then taking it over to the bank happily, this is the first memory etched in our hearts about Bank Deposits. Bank deposits are also something that is highly frequented by us Indians.
Bank deposits consist of money placed into banking institutions for safekeeping. These deposits are made to various types of deposit accounts such as savings accounts, checking accounts and money market accounts.
The account holder has the right to withdraw deposited funds, as set forth in the terms and conditions governing the account agreement.
Some attractive features of bank deposits are as follow:
● Low risk
● Capital guarantee
● Fixed returns
● Good returns
The only risk involved in bank deposits is when inflation happens and in these rare occurrences bank deposits offer negative returns.
How to invest
Investing procedure depends upon the type of bank account you want to invest in,
If you are planning to invest in a Basic Savings Account
● You start by opening an account
● You deposit a certain amount, and the bank pays you interest on that amount.
● The interest rates paid out on savings accounts are low, but with most savings accounts you can access your funds at any time. The bank uses your money to loan out to borrowers at a higher interest rate, enabling them to provide funds and make profit while essentially sharing that profit with you.
If you are planning to invest in an IRA
An Individual Retirement Account (IRA) is a way to save money and avoid taxes while investing.
● You can set up an IRA account through your bank. Most offer a choice of various mutual funds, stocks and bonds
But a savings account does offer a steady income by way of monthly interest from bank deposits. Types of bank deposit must be chosen based on Age and commitments. To get better returns investments in MF-SIP and Shares are recommended. But since there are many different types of accounts to choose from it will be advised to contact a trusted brokerage like Goodwill who will educate and guide you in this quest. They also offers free webinars, daily reminders and free seminars and classes to further enlighten you.
Contact Goodwill at firstname.lastname@example.org or at +91 80122 78000.