Different people save for different reasons, but in general, havings savings benefits in the long run, whether you’re avoiding hardship or going after the things you desire. Saving money is also easier if you have a clear goal in mind for it.
Believe me, I’ve tried and tested various methods of investment, but the most reliable and satisfactory is the Fixed Deposit. With it, I know how much I’ll invest for a fixed term and a fixed return. A Fixed Deposit Interest Rate is predetermined for a fixed period.
What is a Fixed Deposit?
Currently, also known as an FD, a Fixed Deposit is one of the most wise investments, and it is an investment offered by banks to help people save money. Notably, one can invest a sizeable amount of money here because as mentioned above, Fixed Deposit Interest Rate is predetermined for a fixed time period. So, in this arrangement, the borrower invests money for a fixed term and a fixed return.
What are the top features of an FD?
An FD is a wise investment because it offers assured returns. Now, these returns are over the returns you get on your savings account.
Investment options such as bonds, mutual funds and stocks give you high returns. But, remember, they are volatile as they are linked to market risks. So, people who are not ready for risks can invest in FDs. Moreover, If you go for the right FD interest rate and tenure, they are an excellent option to achieve long-term financial goals.
The tenure decision for a fixed deposit account depends solely on the holder of the account. The minimum term depends on the bank and can range from 7 days to 10 years.
FD can easily be broken before it matures. When there is any kind of emergency, you can withdraw the amount anytime, just for a small penalty. (Note: Don’t withdraw unless there is an emergency, as it may affect the returns)
How to Choose the Best Fixed Deposit Interest Rate for Your Needs?
I’ll share my personal experience here. Now, I have been using the Bajaj Finserv App on my smartphone for all sorts of digital payments. From my mobile recharge to my electricity bill to even my property tax, I make every kind of payment here. However, I checked out their Fixed Deposit Interest Rate calculator when I was planning to invest in Fixed Deposit last year. So, here is a step-by-step guide on how to avail of this facility –
- Download the ‘Bajaj Finserv: UPI, Pay, Loans’ app.
- Open it and click on the top left icon with three lines.
- Tap on the ‘Try our Calculators’ option.
- Go to ‘Deposits Calculators’ and tap on ‘Fixed Deposit Interest Calculator.
- Enter the details
- You are good to go!
(Note: Please don’t consider this write-up as promotional. Readers are free to choose any application that suits them the best.)