Long-Term Fixed Deposits Vs Short Term Fixed Deposits

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Advantages of Short-Term Fixed Deposits

1. Flexibility 2. Liquidity 3. Lower risk 4. Safe option 5. Achieve small-term goals

Disadvantages of Short-Term Fixed Deposits

1. Reinvestment risk 2. Inflation risk 3. Lower interest rates 4. Tax returns

Advantages of Long-Term Fixed Deposits

1. Higher interest rates 2. Guaranteed returns 3. Loan facilities 4. Auto-renewal 5. Tax benefits

Disadvantages of Long-Term Fixed Deposits

1. Rigid lock-in period 2. Lower flexibility 3. Interest rate risk 4. Lack of options

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