If you are thinking of investing money amid the corona crisis, then we have come up with the best investing options for you. Most of us get confused between savings account and fixed deposit. Here we will analyse which is more beneficial for you.
Moreover, bank FDs are meant for capital preservation and suits especially those who are retired and need a regular income with high safety. Moreover, there are a few banks which are offering a high interest rate on their savings accounts and get higher profits in return.
Why You Should Go for Savings Account than Fixed Deposits?
The rate of interest in savings account is higher than the rate being offered by some banks on their fixed deposits.
Moreover, you can get more interest on savings accounts rather than locking in funds into bank FDs.
On the other hand, money in a savings account provides better liquidity, individuals can make the best of the current interest rate scenario.
Still, bank FDs are meant for capital preservation and suits especially those who are retired and need a regular income with high safety.
While a majority of public and private sector banks are currently offering interest rates in the range of 2.5-4 per cent per annum on their savings accounts, there are a few private sector and small finance banks that are offering up to 7.15 per cent per annum”.
“Amid heightened uncertainties fueled by the Covid-19 pandemic, capital protection has become as critical as capital appreciation. As such, it won’t be wrong to argue that risk-averse investors should continue investing in fixed deposits despite the lowering of interest rates in the recent past,” says Shetty of bankbazar.com.
