The Lesser-Known Benefits Of Fixed Deposit

# Floating rate deposit

Floating rate term deposits are a variant of fixed deposits, wherein the rate of interest is not fixed for the entire tenor of the deposit, but moves in parallel with a reference rate, which is periodically reset. This deposit shall allow you to take advantage of Interest Rate changes without closing and re-booking their Fixed Deposits. Some banks and non-banking Finance Companies have Floating Interest Rates omn Deposits. HDFC, country's largest mortgage lender, has a floating rate deposit where the interest rate is declared every quarter.

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