Difference Between CIMB Why Wait Fixed Deposit-i & Normal Fixed Deposit | CIMB SG (2024)

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Difference Between CIMB Why Wait Fixed Deposit-i & Normal Fixed Deposit | CIMB SG? ›

CIMB's Why Wait Fixed Deposit-i account works like a normal fixed deposit. The good thing is, unlike a normal Fixed Deposit where you receive your interest only at maturity; CIMB's Why Wait Fixed Deposit-i account allows you to collect your returns in the form of profit, upfront.

Fixed deposits (FDs) are a type of term deposit account that offers a fixed interest rate to investors for a fixed term. FDs are a safe and popular investment option, offering higher interest rates than regular savings accounts.

Corporate Fixed Deposit schemes offer higher returns on your investment, but choosing the right company is imperative. If you choose a good Company FD scheme, you will generally earn more on your investment than bank FDs as these schemes offer the highest interest rate on FD.

Profits are paid on maturity. You can enjoy the flexibility of choosing your maturity period between 1 to 60 months and its respective profit rates.

The interest earned, as a part of the Tax Saving Fixed Deposit is taxable and is deducted at source. Premature withdrawals, Loans or Overdraft (OD) facilities are not available for a Tax Saving FD. Regular Fixed Deposits offer Loan against deposits. There is no auto-renewal facility for Tax Saving Fixed Deposits.

CIMB's Why Wait Fixed Deposit-i account works like a normal fixed deposit. The good thing is, unlike a normal Fixed Deposit where you receive your interest only at maturity; CIMB's Why Wait Fixed Deposit-i account allows you to collect your returns in the form of profit, upfront.

Unity Finance Bank's highest FD rate

The small finance bank is offering its highest rate on fixed deposits with a tenure of 1001 days, providing regular investors with 9% interest and senior citizens with 9.5% interest.

Term Deposits are one of the best investment options for people who are looking for a stable and safe return on their investments. In Term Deposits, the sum of money is kept for a fixed maturity and the depositor is not allowed to withdraw this sum till the end of the maturity period.

Which bank offers the highest FD rate in Singapore? ›

CIMB CLICKS ONLINE BANKING

All eFD placed via Clicks will be on auto renewal basis. You may print the 'FD Acknowledgement Slip' via CIMB Clicks. This slip is the exact duplicate if you were to print at the branches/over-the-counter.

Withdrawal – Customer withdraw on maturity date. Upliftment – Customer withdraw before maturity date. If customer do not withdraw on maturity date, then the interest will be rolled into principal FD account the next day.

Reasons for investing in Fixed Deposits

It is risk-free and guarantees fixed returns. Fixed deposit interest rates are higher than other risk-free investment instruments like Treasury Bills or Government Bonds. Fixed deposits provide complete flexibility with regard to the tenure of investment.

You can take advantage of the income tax deduction provision under Section 80C of the Income Tax Act by investing up to Rs. 1.5 lakh in a tax-saver fixed deposit account. The scheme ensures returns along with capital protection. However, you must note that the interest income from the account is fully taxable.

The choice between a savings account and a fixed deposit depends on your financial goals. A savings account is suitable for liquidity and daily expenses, while a fixed deposit offers higher interest for a fixed tenure, making it ideal for savings and wealth creation.

While savings and current accounts are places to keep money you want to use anytime, a fixed deposit account is a place to keep it aside for a period of time. You can still withdraw the funds whenever you want to, but if you withdraw before your tenure is up, you may forfeit some interest returns.

In conclusion, while fixed deposits seem to be safe, secure and attractive, in reality, they are prone to suffer from inflation and high taxation. Company fixed deposits may seem even more attractive compared with bank deposits but have a higher risk. Fixed deposits have a low level of liquidity.

A term deposit is often used when the deposit is extended for a certain period, say 3 months, 6 months etc. Fixed deposits, on the other hand, are used when the deposit is for a period of 6 months or greater than that. The deposit amount offers a higher rate of return as compared to the banks' savings accounts.