With a choice between bank deposits and company deposits, how do you decide which one is for you? Vijay Bhambwani explores the options...

The creation of wealth is a multi-pronged activity. On one hand, you try to make more money, and on the other, you control expenditure to save the most. This is the most basic method of creating wealth.

However, the process of achieving your target can be cut short if a sensible avenue is found, where you can park your funds in fixed income avenues where your money grows at a steady pace.

TERM DEPOSITS
Term deposits are your panacea. They are basically investments that you make for a pre-determined period and at a fixed rate of return. Unlike the stock markets, your returns will not fluctuate like a yo-yo and your rate of return will be significantly higher than a savings account.

What could also tilt your decision in favour of one as compared to another is the issue of contingencies. If you perceive any need for an urgent withdrawal of funds, say in the case of childbirth, an impending marriage, foreign travel, etc, it would make sense to opt for bank deposits as they are easily encashable within the hour.

So all these factors must be considered in conjunction with the yield factor before finalising your investment preference. Once the investment is made, simply sit back and let your money get to work for you.
Happy investing...

 
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