In the recent past, the rate of the Rupee has been constantly fluctuating. This is a serious problem and one that affects the stock market significantly. The fall in the exchange rate directly impacts the share market as traders are constantly trying to keep their losses to a minimum.

Thus, it may not be the ideal time to invest in short-term vehicles. Investors should rather turn to something more dependable and which is not subject to constant fluctuations. One of the best ways to do this is to think about the long-run and to set-up a fixed deposit account.

This can be done by people who have a good amount of money saved up. This money can then be tied up in a bond with the bank. The account holder agrees to keep the funds with the bank for a fixed period of time. This could range from 15 days to 10 years according to the commitment they are willing to make.

This is an extremely stable investment as the account holder is assured his initial investment, as well as the amount he has earned as interest. Depending on the amount deposited and the tenure of the agreement, a person could earn a good amount of money after reaching the maturity period.

In addition to this, the funds which are deposited are relatively liquid. True, the account holder must keep the money in the account until the period of the deposit has lapsed. However, in case of an emergency, the money can be withdrawn. At the most the bank may charge a penalty for the same or there may be a deduction in the amount paid as interest.

The interest rates offered on this deposit are relatively high when compared to a savings and a recurring account. Although the rates differ from one bank to the next, they are known to go as high as 10%. Even after the deduction of taxes, the percentage of gain rages around 9%. Thus, this is a safe yet high-yielding option, which a number of investors stand to gain from.

But it doesn't stop there banks stand to gain from this investment as well. When people tie up their funds in a term deposit account, they do not plan to make a withdrawal in the near future. Thus, the banks have access to the funds invested, for the foreseeable future. They can thus, use this money to offer loans to the general public. In this manner, banks stand to gain from this investment as well.

So if you are looking for a safe investment opportunity, so that your finances remain unaffected by the current market fluctuations, a term deposit is a good option which you can depend on.