Future is always uncertain an individual does not know what is going to happen with him the second minute., An individual has not thought what will his family do after him then it’s time to think about it. Insurance is the best way to get the safety and security of your family members and the loved ones. There are many types of insurances that are provided by the banks or by the government. Many schemes are introduced to the people whose work is traveling only like transport services, airplane, and shipping services, etc. it is quite necessary and beneficial for these people to buy travel insurance and they will get the fruitful results in future.
Car loans are also available for the people who have their vehicle and through insurance an individual can easily get the claimed amount from the company side. Personal loans, educational loans, and various other loans are available for the convenience of the customers and maintain a high standard of living in the society. Actually, time deposit insurance directly means that an individual have to deposit a desired amount in the bank every month, year or quarter. After 5 or 7 years that amount is multiplied according to the rates prevailing in the share market and you will beneficially get the good returns on the investment.
Time Deposit Rates:-
Rates are usually fixed by the banks, and the rates and interest vary according to the time of insurance. If you have taken the insurance scheme of long-term deposit, then the interest and the rates provided to you will be higher as compared to short-term insurance policies. Time deposit rates can be understood with the help of the below-given points they are:-
- If the insurance is for 1 year, then the interest rate will be – 6.8%
- 2-year account – 6.9%
- 3- year account – 7.1%
- 4-year account – 7.6%
In this time of insurance a definite time is allotted to the holder, and if he withdraws the amount before the maturity period, then he will be charged penalty and get the fewer returns than he might get on the maturity date. So it is really important to know about the basic details of the policy before reaching the final decision of investment.
Travel Insurance:-
Insurance of traveling is very useful for the common people, and this will cover a certain high cost of any uncertain losses, deaths, accidents, etc. this amount can be used at the time of serious illness. Anything can happen in this uncertain world, and these insurances provide safety and security from such adverse circumstances. The sufficiently high amount is covered under travel insurance so that the policyholder can be benefitted through the schemes. Loss of the travel documents can be covered under this insurance. Scope and importance of this insurance have significantly grown in the recent years as the present generation is smart and active and is aware of the benefits of the insurances.
The policy holder can be freed from the tensions of future uncertainties and live the present moment with peace and enjoy the life to the fullest. In some places, you can be offered 100% coverage benefit, and in some places, there is the scheme of 70%, and 50% is available for the policyholders.
Car Insurance:-
Car insurance is also the significant contract of insurance between the policyholder and the insurer. An individual just has to deposit a minimum fixed amount of his salary to get the comparatively good returns in future. If an individual has this car insurance, then the company is liable to pay the claimed amount for the loss of lives of the passengers and any loss or damage to the car in the accident.
Role and Importance:-
Time deposit rates usually depend on the period of time an individual have deposited the amount in the policy or bank. If you have the policy of a long time, then you will get the good, returns and returns might depend on the rate of the share market. Risk is the basic part of the business and services, if you want your roots to be strong and get the best services and insurances then you have to take risks. These cannot be ignored and more probably the decision making power is totally in your hand you can choose your own sources of investment and many more options are present in the market.
- Whenever you go for taking any policies and insurance the first thing in your focus is the interest rates provided on the amount.
- An individual can consult the bank managers regarding the interest rates and time deposit rates.
- It is useful to have knowledge about the rates of interest because they usually vary from bank to bank. Banks decide their own interest rates according to the reputation in the market.
- An aware customer or the insurance holder can make correct decisions related to the investment and returns.
Life is uncertain, and this insurance provides safety to the policyholders, and you can easily support your increase your money in sufficiently less time.
Comparison of Different Fixed Deposit Rates:-
- Union Bank charges an annual interest rate of 0.875% and the interest earned before tax is ₱437.50. Minimum deposit amount is ₱50,000.
- Annual interest rate of Maybank is 1.750%, and the interest before taxes amounts to ₱875.00 with the minimum deposit of ₱50,000.
- BDO bank charges 0.625% of annual interest rate. Interest before taxes ₱312.50 with the minimum deposited amount of ₱1000.
- RCBC bank is known for the limit of the period fixed that is about 30 days – 3 years. Annual interest rates are 0.875% and the interest before tax amounts to ₱437.50. The minimum deposited amount fixed here is about ₱5000.
- PS bank has the annual rate of interest of 0.250% and the interest earned before taxes is ₱125.00. Minimum deposit amount is about ₱10,000.
So, these are the various fixed deposit rates that are important for an individual and decide where he should make the investment for the insurance.