The moment you start earning money, keep in mind that savings are a very crucial part of it. To have a secure future, maximising earnings and growing wealth exponentially is essential. At an early stage of life, taking small steps of investment is vital for stable financial health. Around a year ago, when I started my first job, I started investing in Fixed deposits or FD after carefully going through the FD interest rate, which is generally lucrative enough.
As an FD has a predetermined interest rate for a fixed period, it helps to know exactly how much you’ll be getting in return on your investment. This is because when you are investing your hard-earned money, it is essential to understand beforehand what the result will be in the coming years.
What is a Fixed Deposit?
A Fixed Deposit is an investment option offered by banks or non-banking financial companies (NBFC). Here, as mentioned above, the rate of interest and tenure are predetermined, and one can invest a sizeable amount per their capability. So, if you opt for this investment, you are in for an investment with a fixed return.
What are the advantages of it?
Unlike the investment options such as stocks or commodity markets, an FD is considered a wise and safe investment. This is because it doesn’t rely on fluctuating market rates, and the investors can rest assured that they’ll be getting an assured amount when the tenure ends as the FD interest rate is fixed.
The invested amount here can be withdrawn at any time just for a minor penalty. Now, to meet financial needs during the marriage, sickness etc., money plays a crucial role. (Note: The penalty here is less as compared to stocks).
Flexible in nature
Based on your needs, an FD can be taken for as short as a month and as long as up to ten years. The tenure for a fixed deposit account depends completely on the account holder and it’s his/her call to choose it accordingly.
Here is a step-by-step guide on how you can use an FD calculator for your planning –
- Download the Bajaj Finserv app from the App Store (iPhone) or Play Store (Android).
- Sign up after entering your personal details
- On the home page, click on three bars on the top right.
- Choose the ‘Try our Calculators’ option.
- Go to ‘Deposits Calculators’ and choose ‘Fixed Deposit Interest Calculator.
- Fill in the required details and experiment as per your requirement.
(This is not a promotional content piece. Just sharing my personal experience for better understanding.)
Before investing your money, it is important first to calculate FD interest rate and plan accordingly. Every individual has certain goals set in life, and to achieve them, financial planning is essential. Recently, one of my colleagues was also planning to invest, and he got lucky as Bajaj Finserv had revised its interest rates. Notably, it was 7.40% earlier and has now been increased by 0.10% to 7.50%.