In order to have a stable financial present and future, investing your buck timely and wisely is essential. The days when people used to take out a fraction of their salary, keep it aside and call it an investment. To grow your wealth exponentially, one of the best ways is to invest in fixed deposits, as the Fixed Deposit Interest Rate is quite lucrative.
Around eight months ago, when I got my first job, I was prepared to put aside a chunk of my salary into fixed deposits. This is because I knew that it offers assured returns, so it is a safe investment in the long run.
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What is a fixed deposit?
In this investment scheme offered by financial institutions, individuals deposit a lump sum of money for a fixed tenure. This tenure ranges from a single month to several years, and the rate of interest here is generally higher than the one offered on a regular savings account.
In our country, as FD interest rate is relatively high, which makes it a safe investment scheme to put your buck in. Moreover, the returns here are assured, making it easy to plan all your financial goals!
What are the pros of investing in Fixed deposits?
From guaranteed returns to a flexible tenure, this investment scheme has a lot to offer. So, when you invest in this, you need to be stress-free.
As the interest rate is fixed and the principal deposit is guaranteed, fd offers assured returns on your investment.
Higher rate of interest
It helps you grow your wealth faster as FDs generally offer a higher rate of interest than a savings account.
You can easily withdraw your money before the maturity date. So, remember that FD money can be used at any time, but you’ll have to pay a minor penalty when you withdraw early.
What are the things to keep in mind while investing in fixed deposits?
Fixed Deposit Calculator
The first and foremost thing to do before investing your wise money in an FD is to use an FD calculator. Believe me, I did the same, and it helps a lot as it offers a clear picture. It basically helps you get to know exactly how much return you’ll be getting when your tenure ends.
Rate of Interest
After thoroughly doing your market research, then only choose what’s right for you. Obviously, go for the organization that offers a higher FD interest rate.
Some financial institutions offer automatic renewal of FDs on maturity. This is a convenient feature, so you can consider it after going through all the terms and conditions.
Which fd calculator to use?
In my personal opinion, Bajaj Finserv offers one of the best such calculators. With just these few easy steps, you can easily avail this facility –
- Download the application from Play Store/App Store
- Sign up
- Tap on the top left (three lines) on the home page
- Choose the ‘Try our Calculators’ option
- Go to Deposits Calculators
- Tap on Fixed Deposit Interest Calculator
- Enter required details