In order to create wealth, it is important to take into consideration the steps to save money. Not only does this helps you improve your future financial situation, but also it helps make it more secure. It was around a year ago when I got my first job, and thankfully, I had already planned to go for the Fixed Deposit investment. One of the prime reasons to do so was the luring FD Interest Rate due to its good return.
But instead of just going with it, I made sure to get a clear idea of what I’ll be reaping in the coming years to plan everything accordingly in a proper manner. So, using an FD calculator online is one of the best things one can do to check what benefits are there for the investment. Personally speaking, I’ve been using the Bajaj Finserv application for all kinds of digital payments, and this is where I came across the calculator.
What is a Fixed Deposit?
A fixed deposit is a financial provision offered by banks where one can deposit a lump sum amount and yield a higher interest rate as compared to a savings account.
Keep in mind that the FD interest rate is pre-decided for a fixed period. It starts from as short term as seven days and goes up to even ten years, and an individual can withdraw the money before the maturity date. So once you make the deposit, it starts earning interest depending on the duration of the deposit.
What are its advantages?
An FD is one of the most sought-after investments because it assures returns without any kind of risk. Unlike other investments, such as mutual funds, bonds and stocks, where risk is generally high, FD offers a sense of security.
After you calculate FD interest and invest in it, remember that the investment tenure is totally flexible, and it all depends on the deposit holder. Meanwhile, it is essential to know that each bank has its own minimum tenure rules.
Easy Withdrawal at any time
An FD can easily be broken before its maturity period ends. So, if, god forbid, you find yourself in an emergency situation, you can withdraw your money at any time at the cost of just a minor penalty.
How to use a fixed deposit calculator?
Using this calculator is quite simple; you just have to add a few details to get accurate figures. This helps you to experiment and choose what’s best for you by looking at different variations.
- Download the application from the Play Store or App Store
- Sign up by entering your personal details
- Open it and tap on the top left icon with three lines.
- Choose the ‘Try our Calculators’ option.
- Go to Deposits Calculators
- Tap on Fixed Deposit Interest Calculator.
- Enter the details
- Use it as per your requirements
Recently, my younger brother was also planning to invest in FD, and he got lucky. Bajaj Finserv had recently revised its interest rate, and as he was planning to go for five years, the interest rate was increased from 7.40% to 7.50%.