A fixed deposit account is an investment account and a type of savings account in which money is deposited for an agreed period of time (Minimum 3 years) and a fixed interest rate is paid at the end of every year unless otherwise agreed. It is a safer investment option when compared to other investment types such as shares or the money market.
Interest paid on a fixed deposit is paid either monthly, quarterly or yearly according to the investor's choice.
Once you decide to withdraw money from your Fixed Deposit and give us a notice of at least 3 months, we will calculate the principal amount along with the rate of interest, and then deduct the penalty amount (any outstanding interest) in case withdrawal is done earlier than the fixed period agreed. However, in case of an locked in Fixed Deposit we may refuse a premature withdrawal.
For example person agrees to deposit $10,000 for a fixed period of 5 years. However after 4 years person needs the money. Yearly interest that has been paid for 4 years was $10,000 x 10% = $1,000 ... so a total of 4 x $1,000 interest has been paid .. In case we are unable to refund payment of $10,000 (because funds are locked up in an investment) we will refuse premature withdrawal and make full payment after the 5th year together with interest, so after 5 years we will make a payment of $10,000 + $1,000 interest.
In case we are able to release funds within 3 months the following payment will be made .. $10,000 + interest $250 - penalty $250 = $10,000 ... no interest will be paid because of early withdrawal of amount.
The rate of interest is much higher than any other Savings scheme, because amount has been locked in and can be invested properly. Premature and mid term withdrawals are not allowed. However, we may allow to close the account before the maturity period, sometimes with a penalty for premature withdrawal.
The payment of interest will be deposited monthly, quarterly or yearly . whatever has been agreed, to the owners account unless otherwise agreed. Some people prefer to reinvest interest, which is possible, even though interest is lesser than $10,000.
If you have any questions or inquiries please click Green button on the right "Contact Me" or go here contact me.
PS: All Deposits are subject for approval - it depends if we have any open standing projects in need of funding.
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