“Investment on Fixed deposit are considered as safest option”
- Om Mangukiya
Savings account
Savings account is account which you can open in any bank and the interest rate varies from bank to bank. The difference between savings account and current account is that the in current account daily transaction are allowed but in current account only limited transaction are allowed. Saving account is the safest option which has no risk and as I said earlier less risk = less returns saving account offers around 3% - 4% return per year and depends upon which bank you choose. Assuming in that year inflation rate was of 5% that means you value of money is actually reducing by 1%.
Fixed deposit
Fixed deposit interest again varies from bank to bank and the interest rates increases for senior citizen. Fixed deposit as it goes by the name means that there is a fixed principle that you will have to deposit to which bank will provide you interest and rates are comparatively higher than savings account. There are set for particular period can be of 1 year to 10 year. Usually the rates starts from 5-6 % and goes till 7% per year depends upon which bank you choose.
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