If you get money from anywhere and put in your bank saving account for short term as 6 months , 9 months, 12 months etc then it may give less income as interest of your amount. If you are sure that you have not use for this money for 6, 9 or 12 months then you should invest this amount in fixed deposit scheme in your bank.
There are many FD scheme in banks which give high return as interest on your amount. The interest rate in FD is higher than saving account. FD is best way to get safe, sure and high return on your investment. The interest rate is prefixed on your investment period. If you invest your money in bank FD scheme for long term then you will get more higher interest.
There are some rule for withdrawal your money from your bank FD. You can withdraw your money any time before its maturity from your FD scheme. But you’ll get 1% less interest for which your money was invested in FD scheme.
For example – Mr. Ramesh has invested Rs. 20,000 in bank FD scheme for 9 months. The interest rate for FD in his bank is 7% for six months, 8.5% for nine month 10% for 12 months etc. He got need that money after 6 months only and before 9 months. Then he can apply for withdraw money from FD. His investment in FD will be considered as 6 month scheme and he will get interest @ 5% yearly which is 1% less from 6 month FD scheme.
If Mr. Ramesh want to continue his investment in FD after maturity period of FD then his FD will be renewal automatically in same FD scheme for same time.
State Bank Of India (SBI) is best bank for FD. If you want FD in SBI then you have to open an account in SBI. FD in SBI is most safe, guaranteed and highest interest rate. The process for invest and withdraw in FD is easy in SBI.