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Term Account – a Basic Step of Saving for Day-to-Day Needs

By Compte Terme Subscribe to RSS | March 30th 2012 | Views:
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We all must have heard of fixed deposit (FD). In the language of finance, this is known as term account (French: compte à terme), which has a certain investment amount, maturity period and term account rate (French: taux compte a terme). These all things together make a proper fixed deposit account. This account has a very beneficial face which gives a certain maturity amount after a fixed period of time. The term account rate is the key player in the account.

The main things to focus are as follows:

• Rate of interest for the account- The rate of interest for the term account which is commonly used is fixed according to the bank. This rate is a standard rate which can also vary according to the market needs. The rate of interest on such accounts can also be fixed according to the time period. The more days the account is fixed, the more is the interest offered. Termination of the account may result to loss and penalty in some cases.

• Rate of interest for senior citizens- There is a relaxation extended to the senior citizens in terms of rate of interest. They are offered more interest rate than a usual account. They also enjoy few other relaxations as according to the bank norms. In any case if the investor dies, the amount and the interest till date are returned and the term account is terminated. Where a normal investment scheme enjoys 2-3% of interest, senior citizens can have 3-4% of interest on normal schemes.

• Rate of interest depending on the time period- The time period also plays a major role in fixing the rate of interest for fixed deposits. The interest can be fixed on monthly, quarterly, semi-yearly and yearly basis. The interest rate fluctuates accordingly and hence fixing the term account rate. One more criteria for this is the maturity period which counts under time period. More the time fixed by the investor, higher is the rate of interest and more are the gross returns.

• Gross returns- The gross returns is the sum of money invested, interest added on it and taxation which is debited. This as a whole makes gross return. The interest rate is also a very important factor which finalizes the gross value. Investment is also a fundamental behind the gross value. The basic amount and the rate decide the gross value of the account after maturity period.

In total, the term account is a pure saving technique which is guarded by the term account rate. This generates a total sum which can be further invested or used for personal work areas.

Compte Terme - About Author:
Compte Terme recommends the opening of a term account (French: compte à terme ) that is widely recognized as a profitable and safe investment option. Take a look at his website to acquire precious information on term account rate (French: taux compte a terme ) and taxation. Don’t wait to put your money into it. Register today!

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