Term deposit rates are getting increasingly attractive by the day. With the current global economic slowdown, investment options are very few. Due to the global economic slowdown, people have had their fingers burnt by bad financial packages. Nobody wants to invest their precious money in shady places. But money is an asset that can’t be left lying around in the bank. So you would want to go for something that has the lowest risk involved. Thus, term deposits are the best solutions in such cases.
Some people keep copies of tax returns for the prior 3 to 5 years in their boxes as well though I’m not so sure how important this is since your accountant will have copies as well.
Make sure you have the landlord address the deposit in writing. What he can use it for, what portion will you receive back, and when you will receive it back, is extremely important. Make sure you put this in a safe place and don’t lose it. If you sign a lease and forget to have an agreement written, the landlord will be able to use this anyway he or she sees fit.
What will happen if your levy finds a judgment debtor’s safe deposit box? If your Sheriff levy instructions specify that you will pay (or prepay) the extra costs of levying a judgment debtor’s bank safe deposit box, their SDB will be opened. Sometimes the key to open the SDB will appear, which usually saves the creditor money. All too often, hiring a locksmith is required to force the watch safe box open.
An additional fact to find out is how your bank pays interest. Is is simple or compounded? Compounded means you are getting interest on interest plus principle. How often does your bank pay. Monthly, quarterly?
The obvious pro here is that it’s at your house. This gives you twenty four hour access, allowing you to inventory your things, or add or take out items, and of course use said items or documents. Another pro is you know exactly what condition your possessions are in, being that they’re within grasp. Most safes are fire retardant allowing you to retrieve the safe after a fire has been extinguished. Most safes are heavy and awkward to carry. Though this sounds like a con instead of a pro, the weight and awkwardness is actually a security feature.
Financial institutions are willing to give you this guaranteed return because they can generate higher returns lending your deposited funds in consumer and business loans. You get the agreed upon Annual Percentage Yield (APY) from the Certificate of Deposit, and if you invest wisely you don’t have to worry about risk.
You can make a term deposit plan online. Several financial institutions offer various kinds of plans. It is best that you invest with reputed companies rather than brokers. True, they might be offering you a lower rate than brokers. But at least they are safe. It is also best to invest in a scheme that is simple and has no frills. Usually, the ones that appear too good to be true are the ones that could land you in trouble. When you purchase a plan, take your time with it. Read all the little details in the brochures and forms. It could save you from a lot of trouble in the future.