To live a quality life, saving money and building wealth are essential. It is well-known that taking small steps is essential to achieve something big. Around two years ago, when I entered the professional field after graduation, an investment was always there at the back of my mind.
Back then, my father told me to invest in Fixed Deposit as it is a risk-free investment scheme that offers guaranteed returns. So I immediately opened the web and first made sure to calculate FD interest rate on my investment. Then, once I was satisfied with it, I just locked it.
What is a Fixed Deposit?
A Fixed Deposit is an investment offered by banks and non-banking financial companies (NBFC) to help people save money. One can invest a sizable amount of money because the rate of interest is predetermined for a fixed tenure. In this investment scheme, an individual invests money for a fixed term and return.
What are the two types of fixed deposits?
Before investing your money, ensure you go for the right fixed deposit investment and calculate FD interest rate beforehand. It’s always better to use it. Meanwhile, here are THE two types of fixed deposits –
● Cumulative fixed deposit
This type of fd offers compounding benefits to the investors because it gives both the interest and principal on maturity. Here, instead of paying the interest periodically, the lender reinvests it and enables the investor to earn interest on interest.
● Non-cumulative fixed deposit
Non-cumulative fixed deposit is a regular income investment scheme that allows investors to choose their period of interest payout. So, instead of reinvesting, the lender transfers the amount back to the investor.
What are the benefits of FD?
Well, one of the top-rated benefits of FD is that you get assured returns. As a matter of fact, it doesn’t have anything to do with the market like the stocks. So even if the market is down, you need not worry.
(Tip:Use a Fixed Deposit Interest Rate calculator before investing your hard-earned money.)
● Assured returns
The interest rate remains the same throughout the investment tenure, and you know exactly what you’ll get in return.
Starting from a month to up to 10 years, a Fixed Deposit can be taken for a tenure of your choice.
● Easily withdrawable
The amount invested in FD can be withdrawn at any time and used in emergencies.
Here are the step-by-step instructions on how to use a fixed deposit calculator to find out how much interest you can earn on your fd –
- Download the official Bajaj Finserv app on your iPhone/Android.
- Sign up with your details
- On the home page, tap on three bars on the top right.
- Choose the ‘Try our Calculators’ option.
- Go to ‘Deposits Calculators’
- Choose ‘Fixed Deposit Interest Calculator’.
- Enter the details and know what suits you the best.
Using a fixed deposit calculator is always a good idea as it gives you the exact figures of what you’ll be getting on your investment. So instead of using a pen and paper or just calculating roughly in your mind, it is always better to use such a tool.