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Certificate of Deposit

Certificate of Deposit – Benefits of Certificate of Deposits

Are you trying to avoid all risks and obtain a secure, guaranteed return? If yes, a Certificate of Deposit (CD) could be the best savings instrument of choice for you.

When it comes to securing your savings and earning a reliable return a Certificate of Deposit plays a very important role in an individual’s life.

It is correct to say “Save Today, Smile Tomorrow: Your Key to Financial Bliss!”

In a world full of uncertainties, you must all also agree that savings play a vital role in a secure and safe future.

Savings means keeping some of the money you earn for later. It’s like putting coins in a piggy bank or bank account.

When you save you are getting ready for the things you wish to buy or want in the future.

It is the way to make your dreams come true. Savings act as a safety tool for unexpected expenses, provide means to achieve goals and offer a sense of security, stability, and control over future finances.

A certificate of Deposit (CD) is a form of savings product that individuals or investors invest in which the interest is accumulated on a single amount for a specific defined period. 

A Certificate of Deposit can be issued by selected financial institutions like scheduled commercial banks, Regional Rural Banks, and Small Finance Banks and regulated by the Reserve Bank of India (RBI).

A certificate of deposit is a money market instrument issued against funds deposited in a financial institution for a specific period.

It is an agreement between the depositor and the institution upon any discount at which the certificate can be issued, fixed or floating interest rates on the instrument, and its maturity period.

The certificates of deposit can be issued at a discount to the face value.

The tenure of a Certificate of Deposit varies from seven days to one year. It cannot be redeemed before maturity.

There is a grace period of seven days after maturity, during which you can withdraw the amount or reinvest it.

If you have not withdrawn during the grace period, the amount gets reinvested, withdrawal of which before maturity attracts a penalty.

Benefits of Certificate of Deposits

Secure investment: Certificates of deposit are issued primarily by fairly creditworthy institutions and regulated by the Reserve Bank Of India (RBI).

The issuing institutions are mandated to maintain a Statutory Liquidity Ratio (SLR) and a Cash Reserve Ratio (CRR) as per the price of the CD.

As an investor, your principal and the returns are incredibly safe in CDs.

Fixed returns: CDs offer a fixed, predetermined return, which can be a regular income stream.

The returns on CDs can be negotiated in terms of the discount at which they are issued. Also, by choosing a relatively longer maturity, you can receive higher CD rates.

Flexibility: CDs have built-in flexibility due to the choice of tenure and the space to decide whether to redeem or reinvest in the grace period.

You can also choose a monthly, quarterly, semi-annual, or annual interest payout for your CD.

Certificates of Deposit are extremely safe deposits with authorized financial institutions.

They offer guaranteed fixed returns in the form of interest payments and discounts on face value and certificates of deposit are trustworthy and secure financial products

Certificates of Deposit (CDs) provide a safe and reliable way to save and grow your money.

With guaranteed returns, higher interest rates, and various term options, CDs offer a secure and predictable investment opportunity for individuals seeking stability and steady growth.

As we all know that in today’s crowded life, everyone is busy earning and eating, but perhaps we do not know that our regular small savings can give us a big return through a Deposit Certificate.

If you also want to get your deposit certificate made or apply for it, then Digital Seva Center is at the forefront of providing this facility to you.

We are India’s Most Trusted Digital Seva Services Provider Company. We have a wide range of government & non-government services at very affordable cost.

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