You will opt for FD (Fixed Deposit) with the intention of savings or investing it. If you invest the money, you will be able to enjoy other benefits that are dependent on your investment option. By investing in a fixed deposit, you will earn higher returns as compared to your savings account. Fixed deposits offer a fixed rate of interest throughout the investment tenor as fixed deposit interest rates do not tend to fluctuate.
How can you Withdraw Funds without Breaking FD Account?
But, you can enjoy these benefits once the fixed deposit gets matured. In case, you need a lump sum amount of money in an emergency situation, what will you do? If you break the FD before maturity, the lender might charge you with a penalty.
How about opting for Overdraft facility? When you opt for an overdraft facility, you can take a loan against the amount that you have invested in the FD. By using an overdraft facility, you don’t have to break your FD or pay a penalty on it.
An overdraft facility is a kind of loan that you take over your fixed deposit account. You will be surprised to know that you can withdraw up to 90% of the amount in your fixed deposit account. So before investing you have must know about the everything about bank deposit, which help you to manage your investment in the time of emergency.
Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.