Savings is the need of every household for security and surety in case of emergency. To facilitate and meet the needs of its customers, banks offer varied kinds of options for savings and investment viz. Offshore Deposit Accounts, Savings Accounts, Term Deposits etc. Before choosing an investment type that best suits your need, you should go through the pros, cons and limitations of every form of banking. The decision of selecting a particular form of investment should be mooted in depth. Here are few details to ponder over before deciding whether to invest in Savings Accounts or Term Deposits.
The greatest advantage of Term deposits is that they yield more rate of interest than Savings Accounts. It is known worldwide that higher return on investment is one of the major reasons why people decide to opt for time deposits over savings account.
However, the savings bank account have an edge over fixed deposit account in a manner that one can deposit and withdraw money from Savings Account anytime they want, without losing any interest. But in Term Deposit you lose interest if you withdraw your investment in the midst of its tenure.
Furthermore, the added advantage of withdrawals from any bank branch or ATM for emergency situations is a point one should think over, since Term Deposits do not offer such facility.
Having said that, few are of the view that since the fear of losing interest is high, people tend to cut down their expenditures if they have invested in term deposits. The lessened expenditure can inculcate the habit of saving. The facility to withdraw money anytime you want does not imbibe that habit in you.
Each and every individual is unique and so are his habits, needs and wants; one should choose an investment type that best suits his/her requirements. There is also a view that one becomes complacent if they have a term deposit, they tend to stop saving thinking they have saved enough.
So, one should always observe habits and past history before deciding on an investment type. Many believe that Offshore Accounts are the best investment types. Tax Havens provide more interest than a traditional bank in a country, so one can also opt for Offshore Deposit Accounts. Citibank IPB offers great services to its ever-growing clients in Offshore Banking.
In the initial stages, one should go for savings account to begin with little investments made over a long period of time and then magnify the investment base by adding term deposit investments. One should opt for a blend of both savings and fixed time deposit to have the best of both worlds. Citibank offers customer friendly and easy to use services in savings and term deposit investment. More savings, more security!