Should I File a Loan or Withdraw from a Time-Deposit Investment?

what are you saving up for in your time deposit anyway? i mean if you plan to do a business, i am sure you will be needing more than enough to cover for it... do not go over your estimated costs, etc... i would suggest that you use your savings instead of paying for interest loans to start a business. why would you start a business with a loan right away. use a loan to reinforce your funds if needed be... but at least the business was already put up and you knew that by then how much you can afford to pay for in a loan... if we would compute on this, i think your time deposit interest (earnings) will not be greater than the interest you are to pay for the loan... its just how it works, sell high, buy low principle these banks have.

I think I'll just withdraw from my own deposit. filing loans are very risky, plus they really come with an interest. when you become successful in your business then return the time deposit plus you have business and no debt. win win!

I have some savings and have been in financial soup a lot of times. What I did was to pledge the saving fixed deposit certificates to the same bank and get a loan on that. Here in India this is allowed. Please explore this possibility. The advantage is that the interest is about 2 percent per year, the rest of the interest is taken care by the interest that the bank pays you on your deposit. The principal amount is to be paid as in any other loan.

If you have fixed deposits, i would advice you to break that, that is much better than taking a loan from bank or private sources, rate of interest is abnormal if you take from private lenders.. The bank interests is definitely more than what you get on your fixed deposits, more over it is cumulative.. Take decision after considering all these. Best of luck. Professor

A loan as you have known will be with interests. In case of default of payment, not only will you pay the usual interests but the penalty. Hence, if i were you, i would get the capital from your time deposit. That way, you have no worry that it will earn so much interest. Just make sure though that when your business is already operational, you can deposit monthly as your savings.

Hi there graceekwnx, I think that not having any obligations to anyone but your self is important, if you loan it from the bank you'll have interest rates piling up but compared to your time deposit you wont have that kind of hassle. Anyway it is the same thing you use money right at least on your deposit you don't owe anybody and you don't waste extra money in interests and penalties along the way.