Welcome to Study Room, where you can ask questions and receive answers from other members of the community.

0
Elaborate on the importance of investing in fixed deposits.

Solved 1 Answers 102 Views Grade 12

1 Answer

0
Best answer

Importance of investing in fixed deposits.

  • Interest is earned at a fixed rate regardless of changes in the economic climate.
  • The period of investment can be over a short/medium/long term.
  • Ensures financial discipline as investors cannot withdraw their funds before the maturity date.
  • Investors can choose the investment period that suits them.
  • Investors earn a better return on investment than on an ordinary savings account.
  • Principal amount plus interest earned is paid out on the maturity date.
  • It has a low risk as investors are guaranteed of the final payment.
  • The higher the principal amount/The longer the investment period, the higher the interest rate offered by a financial institution.
answered by Master (629k points)
selected by
...