Dear users,
It has been a while since we changed our FIPs (Fixed Income Plans) to Fixed Deposits (FDs), this article is to make our users more aware of this change.
In addition, we have shifted from weekly FIP plans to daily FD plans. The concept remains the same.
Our crypto FDs are available on the website as well as the mobile apps, where users can invest a certain amount of base currency (for example, BTC OR USDT) in one of the FD plans (or more), for a fixed period of time and rate of return.
Users are free to choose a suitable plan from among multiple FD plans available on the dashboard, where each plan has an allocation limit, beyond which further investments into that particular plan will not be accepted. Past that, the funds accumulated will be locked in for said maturity period for interest calculation. As the maturity period ends, the user receives the principal amount along with the interest they earn, in their Bitbns wallet.
Note that, BNS holders can avail a higher rate of return on certain plans (it will be mentioned).
How to invest in FDs on Bitbns?
- Login to your Bitbns account (on website) and select ‘Fixed Deposits’ on the top navigation menu.
- Check out the plans and figure out which one suits your preferences. Then, click ‘Invest Now’.
- Enter the amount of base currency required in the plan you want to invest. This amount will be transferred from your Bitbns wallet to your FD plan. So please maintain sufficient balance.
- Make sure you verify the rate of return and early redemption charges, maturity period and estimated total at maturity before investing. The rate of return is annualized and interest is calculated per day.
- When you are all set to proceed, hit ‘Deposit’.
Interest Calculation
Here comes the interest-ing part; interest calculation, and the whole process of it:
- There are multiple plans on the FD board to choose from. Each FD plan has a maximum allocation limit i.e the maximum amount of base currency it can collect from users.
- Users invest and wait till maximum allocation of the plan is reached. Once maximum allocation is hit, the funds allocated are locked in and maturity period commences.
- Each plan has a ‘Rate of Return’ and ‘Early Redemption Rate’. Let’s understand them both with an example:
Suppose you have invested Rs. 1000 in an FD plan for a maturity period of 14 days, where rate of return is 10% and early redemption rate is 9.12%. Now in case you withdraw Rs. 300 on 4th day of maturity period, out of the Rs. 1000 invested, you get:
- 9.12% annualized returns calculated for 3 days on Rs. 300 in your Bitbns wallet right away. Please note that early redemption rate would be levied as penalty.
- Interest generated as per a 10% annualized rate of return on remaining Rs. 700 (invested for full maturity period).
FAQs on FIP
What is the minimum amount I can invest in FIP?
For a particular FIP, the minimum amount for your first investment is 10 USDT or equivalent BTC. After the first investment, there is no minimum amount.
When does the interest calculation start, for my investment?
Once the maximum allocation for a plan is reached and funds are locked in, the maturity period begins during which the interest on your investment is calculated.
Can I redeem before maturity?
Yes, you can redeem before maturity. However, the amount you withdraw will receive interest calculated as per Early Redemption Rate for the number of days it remained invested in the plan. In case of partial redemptions, the amount redeemed would receive interest as per Early Redemption Rate and the rest will receive interest as per ordinary rate of return.
What is the minimum maturity period for which I shall stay invested in FIP to make minimum possible interest?
24 hours is the minimum maturity period to start making interest in an FIP plan.
Can I withdraw during the allocation period?
No. Withdrawals are not allowed during the allocation period.
