beginner deposit

Fixed Deposit: A Beginner's Guide to Starting Investments

Beginner's Fixed Deposit – Did you know that investing can be a crucial step in achieving financial stability and reaching long-term financial goals? However, for beginners entering the investment world, it often becomes a challenge, especially with the associated risks.

But it turns out there's an investment-friendly option for beginners. Fixed deposits emerge as a low-risk investment option that not only offers stability but also security. 

In this article, we will discuss what fixed deposits are and what to consider as the first step in your fixed deposit investment journey. Read the complete article! 

Also Read: Comparison of Bank Deposit Interest Rates, Which One Is the Highest?

What is a Fixed Deposit?

beginner deposit

A fixed deposit is essentially an investment where funds are placed in a bank or financial institution for a specific period with a fixed interest rate. 

For many beginners, the term 'investment' may sound complex and risky, but fixed deposits offer a clear and straightforward option. With fixed deposits, you deposit a certain amount into a specific account with a promise of return along with interest after a specified period. 

In terms of risk levels, fixed deposits are considered a safer investment because the interest rate and tenure are predetermined, providing essential stability for financial planning.

Things to Consider When Starting a Fixed Deposit

1. Consider the Benefits of Fixed Deposits

When entering the fixed deposit world, it's essential to understand the benefits you can gain through fixed deposit interest. One significant aspect of fixed deposits is the higher interest rate compared to regular savings accounts.

With a fixed interest rate over a specific period, you gain stability and assurance of your investment return. This is a major attraction for many customers, especially beginners seeking clarity regarding their investment returns.

Besides stability, fixed deposit interest can also provide advantages in terms of fund growth. The interest received every month or after the fixed deposit period ends can be a significant addition to your initial capital. This becomes an effective way to strengthen your financial portfolio. 

Therefore, when starting a fixed deposit, carefully considering the benefits of fixed deposit interest is a crucial first step in planning your investment.

2. Choose the Right Tenure

beginner deposit

In addition to interest, you should also consider the tenure in fixed deposits. Fixed deposit tenures tend to vary, ranging from a few months to several years. 

The selection of the tenure should align with your financial goals. If you have plans and need funds in the short term, a short tenure might be more suitable for you, and vice versa.

3. Determine the Initial Deposit Amount

The next important step when starting a fixed deposit is determining the initial deposit amount. Most banks set a minimum initial deposit amount that you need to pay to open a fixed deposit. 

The initial deposit amount can vary from one bank to another. Therefore, before deciding to open a fixed deposit in a particular bank, make sure to know the applicable initial deposit requirements.

Determining the initial deposit amount's importance is not only related to the bank's terms but also to your financial capability. Choose an initial deposit amount that aligns with your budget and investment goals. 

By determining the appropriate initial deposit amount, you can invest more planned and effectively.

4. Risks and Other Considerations

In addition to the above aspects, it's also essential for you to understand the risks and other considerations related to fixed deposit investments. Although fixed deposits are considered a relatively safe investment option, there are still some risks to consider.

One potential risk you might face is liquidity. Fixed deposits have a specific tenure during which invested funds cannot be withdrawn before maturity without incurring a penalty. 

Therefore, make sure to choose a fixed deposit tenure that aligns with your needs and financial plans. You can also select a bank for fixed deposits with low risk or even no penalties for withdrawals before maturity.

Also Read: Indonesia Deposit Insurance Corporation (IDIC): What You Need to Know?

In starting fixed deposit investments, it's crucial for you to carefully consider various aspects such as benefits, tenure, initial deposit amount, and potential risks. Fixed deposits, as a relatively safe investment instrument, provide stability and profit certainty.

Now, to start your investment, Whiz introduces Smart Saver – a high-interest deposit solution with a 6.75% interest rate. Another advantage is that you can withdraw funds without penalties, providing greater flexibility in managing your finances. 

No need to worry about security issues because Whiz collaborates with a licensed bank regulated by the Financial Services Authority (OJK) and is a participant in the Indonesia Deposit Insurance Corporation (IDIC). Your fixed deposit is undoubtedly secure.

With Smart Saver, Whiz offers a fixed deposit solution that not only provides financial benefits but also delivers a sense of security and comfort.