A fixed deposit scheme could assist you in saving plenty of money. The scheme could also expand your investment portfolio. Therefore, it would be imperative for you to choose a fixed deposit account prudently. It would be in your best interest to ensure that your hard-earned money has been invested in the right bank or financial institution. When you choose the Best Sgd Fixed Deposit Rate of a reliable bank or financial institution, you would get the maximum for the invested amount.
Numerous fixed deposit schemes have been made available presently. However, choosing the right scheme could be a daunting task for you. Nonetheless, you should be prudent in your choice of fixed deposit schemes to enjoy the benefits associated with them.
Why Invest Prudently In Fixed Deposits
Fixed deposits can be a method to make sure we get a guaranteed return on your money, which exceeds the savings account while being risk-free. However, many banks are cutting fixed deposit rates and the interest rate earned through Singapore Savings Bonds (SSB) is higher than the majority of fixed deposits.
Disadvantages Of Fixed Deposits
Find below a few drawbacks of fixed deposit schemes.
- Liquidity
You will lose liquidity when you deposit funds in a fixed deposit. This means that if need the money before the maturity date, you will get only a small amount of interest. It’s worth noting that the loss you incur for the pre-maturing of redeeming your capital is minimal when compared to what you’d lose by surrendering other financial instruments earlier, such as endowment plans.
- Interest Rates
The rates for fixed deposits are quite low, even when compared to investments that are virtually risk-free such as SSB.
Settling Your Debts
You might wonder about the several ways to settle debts in Singapore.
The economy during corona virus has affected many borrowers with severe consequences. If you experience an unexpected loss of income because of the Covid-19 virus and discover that you are left with no option of repaying your credit card or personal loan obligations, rest assured that short-term loans or the debt settlement process could be an alternative.
Here is how to do it.
- Debt Repayment Scheme
The Debt Repayment Scheme or DRS is a program run by the government. The idea behind this scheme is to let you combine all the debts you owe into one.
- Bankruptcy
It is the last option, but it is not an end in itself. It has enabled many people to begin fresh with a new beginning.
- Debt Consolidation Plan (DCP)
The Debt Consolidation Plan (DCP) was announced on 23 January 2017. How does DCP work and how it can help you? DCP can help those who have non-secure credit facilities like credit cards. How it works is that you request DCP in the context of 14 banks that are registered in Singapore.
Benefits Of High-Interest Savings Accounts
Savings accounts in Singapore are among the most sought-after savings instruments, and with good reason! High interest savings accounts in Singapore pay interest rates that are more than other available savings options. The most reputable savings account in Singapore has great features including free ATM withdrawals, outstanding customer service, and convenient access to your money whenever you need it.
You could make the most of these savings accounts to save adequate money for future financial needs. However, it would be in your best interest to be prudent in your choice of high-interest savings accounts. These accounts would prove beneficial to your money savings needs. However, you cannot be complacent with gathering adequate information on the choice of savings account you tend to invest in.
