In India, fixed deposits (FDs) have always been considered a safe and secure investment option. FDs allow investors to earn a fixed rate of interest on their money for a predetermined period. They offer stability to investors’ investment portfolios, especially during times of economic uncertainty. In this article, we will discuss benefits of fixed deposits, how to calculate FD returns, and how Bajaj Finance FD calculator can help you make informed investment decisions.
What are fixed deposits?
Fixed deposits are investment instruments that allow investors to park their money with banks or financial institutions for a fixed period. In return these banks or financial institutions offers a guaranteed rate of interest. They generally offer higher returns than savings accounts and come with almost zero risk. FDs are ideal for individuals who prefer guaranteed returns and do not want to take risks.
FD interest rates vary across banks and non-banking financial institutions based on various factors such as the tenure of the deposit and the amount of investment.
Why fixed deposits are your key to stability?
- Guaranteed returns and flexible payout options: FDs provide a guaranteed rate of return; these returns are not affected by market fluctuations or economic uncertainty. Financial institutions such as Bajaj Finance provide investors with the flexibility of regular payout options, including monthly, quarterly, half-yearly, or yearly intervals, particularly who choose non-cumulative fixed deposits.
- Flexible tenure: FDs offer flexible tenures ranging from few days to few years. This provides investors with a range of options. They can choose the duration of their investment as per their individual financial goals and requirements.
- Liquidity: FD usually comes with a fixed tenure option, but it also provides some liquidity options like:
- Premature withdrawal: Premature withdrawal of a fixed deposit means taking out the deposited money before the end of the tenure. People usually do this in case of an emergency. Keep in mind that the interest rates for premature withdrawals might be different from the initial rates. While this offers quick access to funds, be aware of any charges or changes in interest rates which might be applicable.
- Loan against FD: A loan against a fixed deposit is a financial option where individuals can leverage the value of their FD to secure a loan. This can provide a quick and convenient solution for those who need funds, while allowing them to retain the investment. Bajaj Finance offers a loan of up to 75% of the FD deposit value to its customers.
Bajaj Finance FD Calculator
Bajaj Finance, one of India’s leading non-banking financial companies, offers an FD calculator that can help investors determine their expected returns on their FD investments. Bajaj Finance FD calculator takes into account the type of customer, investment amount, tenure, payout frequency and the current interest rates offered. This will help you determine the maturity value and the interest earned on the deposit.
Additionally, Bajaj Finance offers FDs with attractive interest rates of up to 8.60% p.a., making them an ideal investment option for investors looking for secure and stable returns. Bajaj Finance fixed deposits also have the highest credit rating like CRISIL (AAA/STABLE) and [ICRA]AAA(STABLE) making them an attractive option for investors.
Conclusion
Fixed Deposits are a reliable and safe investment option that provides stability to your investment portfolio. FDs offer guaranteed return on investment with almost zero risk. Investors can then use Bajaj Finance FD calculator to calculate the expected returns and earned interest, and eventually helping the customers make an informed investment decision.
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