![]() Generally, the longer the tenure, the higher the interest rate will be. A placement of RM10,000 with a 12-month tenure will give you RM185 when the tenure ends. In the example above, if you open a fixed deposit with a 12-month tenure, you will be entitled to an interest rate of 1.85% p.a. For example, banks normally quote their fixed deposit interest rates in a table similar to the one below: Tenure/Term These tenures can vary anywhere from one month to five years.Įach tenure comes with a predetermined interest rate. When you select a tenure, you are deciding to put your money away and not touch it for a period of time (one month, three months, six months, one year, etc.). ![]() When you open a fixed deposit account, you have the option to choose a tenure (also known as ‘term’). Since the investment term and interest rate are fixed, you can easily calculate the interest you will earn at the end of any fixed deposit investment. In a fixed deposit, interest is only paid at the very end of the investment period. In return, the investor agrees not to withdraw or access their funds for a fixed period of time. ![]() A fixed deposit, or ‘FD’, is a type of bank account that promises the investor a fixed rate of interest.
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