Submitted by: Limadijaya Suhendra
Banks now have a variety of facilities offered. In broad outline we can divide bank services into two types:
1. A place to keep money in the form of savings deposits of which the bank CD rates should be carefully considered.
2. A place to borrow money in the form of credit.
Saving money in the form of deposits at a bank is the most secure investment and minimal risk yet only produces a little interest or no return for other investments such as gold or currency. Factors that interest rates are relatively low, which causes the return of the deposit was for other investments. However, the level of bank CD rates are usually higher than saving rates. Here, the funds can grow faster than mere savings. Currently, many banks in many countries offer deposits in foreign currencies other than the country’s currency. Lack of bank CD rates is: an initial deposit greater than ordinary savings and the amount has been determined by the bank. In contrast to the savings, deposits are not liquid and could not take any time if necessary. However, deposits are not charged a monthly administration fee. Disbursement of funds depends on the time agreed on. Usually there are options 1, 3, 6, and 12 months. If we take it before maturity will be subject to administrative fees and penalty fees. And the deposit is taxed according to provisions of bank deposits. Therefore, bank CD rates are more suitable for long-term investment. Deposits can be used as loan collateral to obtain loans. And fixed deposits can produce interest rates. Getting the benefit of bank CD rates from banks is low risk factors. Deposits are more suitable for long-term investment. In choosing a bank CD rates are not type deposits. What is the level of deposit insurance by the central bank and the bank? What is the interest rate offered and acquisition requirements beside administrative costs and other costs? We also need to know how much it costs to pay penalties if we take the deposit money prior to the expiration date. In determining the choice of bank CD rates this depends on our goals. If you currently have the money that is not used, so there is no harm included deposits. In order for the money not used can be developed.
In determining the deposits as a long-term investment to consider, you should also consider the amount of money that is not used. Since the deposit has a minimum amount of money in certificates of deposit for it. There are also banks, which provide other facility we can choose to reinvest the principal deposit interest to be transferred to deposit or savings accounts that can be withdrawn at any time.
Furthermore, there is an acceptable deposit interest in advance, so we do not have to pay up the amount that we want to put on bank CD rates. Other facilities are: Automatic Roll Over (ARO) which deposits can be renewed automatically at maturity. Opening deposit is handed over ID cards and photocopy. Cost seal at the opening and withdrawals of deposits in accordance with applicable regulations. Completing the available forms will definitely he ease in making bank CD rates. So if we have not used the money better in the form of savings deposits, because safe, comfortable, and have interest rates relatively higher than savings deposits. Deposit products currently exist as deposits index that has a maximum level of investment is more than the normal deposit.
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