You want to plant money but do not know where and in what? Then read through the text. Here are the different ways of inputs.

Nowadays, security and stability are written very large, especially when it comes to the issue of money. Here we want to take any risks and invest the money safely in order to achieve a good return. A time deposit is recommended noting.

What is meant by a fixed deposit?

The time deposit is an investment where you put the money for a fixed period of a bank. This period is determined in advance and are guaranteed a fixed interest rate over this entire period of the Bank. Of a time deposit is usually from a period of one month, 30 days spoken. The amount of fixed deposit interest rate is always dependent on the duration . The longer the fixed capital is invested, the higher the fixed deposit interest rates will be granted. Over the whole period can not be disposed of the money.The fixed term is often referred to as term deposits.

money-security

Advantages and disadvantages of investing

A fixed interest rate of course, has some advantages, but also plenty of drawbacks. The advantage is definitely interest security, since a constant rate of interest is granted. So interest rates have no influence on the time deposit. Furthermore, also attract many customers attractive returns to complete such an investment. High fixed deposit interest rates are common here and promise high returns . Fees are not collected, so no cost to come in the contract to the investor. Thus, the investor profits to 100% of this investment. Flexible terms are another plus point. Because here you can choose between several times, so everyone can save individually. Usually, a low minimum deposit must be paid, which amounts to a few hundred or thousand euros. Thus, this investment for a number of savers is very attractive.

Besides the many advantages, there are also several disadvantages that should not be ignored. One should always remember that capital is tied over the entire period, and investors may not have the money. The minimum deposit that is required by many banks, can also be detrimental. Investors who want to create a very low amount of money could fail at this minimum investment, because they can not afford that amount. Finally, the fixed interest rate is to be mentioned yet. Over the entire term of the investors in the fixed interest rate is tied. Increase the fixed deposit interest rates in the market conditions such as an interest rate hike by the central bank, you will receive the agreed interest rate and may not benefit from the rate hike. With falling interest rates this fixed interest rate but can be a plus. An overview of current fixed deposit interest rates, you can simply complete the free fixed deposit calculator to determine .

Despite the drawbacks worth nowadays a time deposit, and is chosen by more and more customers. Recommended is a time deposit over a longer period, when high interest rates dominate the financial market . In times of low interest rates should be a short duration can be selected. But those who always wants to access their money should take out a savings account, for a savings account, the investor is very flexible. With interest at a fixed investment are usually higher than a money market account.