The long term Fixed deposits are investment vehicles which are deposited for a more extended period of time, usually for the period of more than two years to 10 years.
The rate of interest on long term FD is higher than the short term deposits. The interest earned is most often just able to compensate for inflation during the tenure thus adding nothing to the actual wealth of an individual whereas the high rate of interest on long term FD allows one to create wealth. The Importance of saving money cannot be emphasised much, and life can take any turn at any time in a matter of seconds, to confront the unforeseen circumstance one must have a decent saving.
The long term tenure of the Fixed Deposit helps in creating a reasonable saving and creating wealth.
Further, it also provides the individual with an opportunity to deposit according to his requirement.
The long term investment is not just wealth creation but also about a rapport between the bank and the customer. When one commits his stake for a long-term, the banks consider his case before everyone else. There is mutual trust among the parties, and at the time when the person needs financial assistance, banks tend to favour.
Read more in Detail: Why Fixed Deposit Works For The Long Term?
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