Financial stability should be your top priority when you start earning money initially. This might sound a bit boring, but believe it or not, it helps you a lot in the long run. In India, a fixed deposit is the way to go if you plan to invest for guaranteed returns. This is because, firstly, the Fixed Deposit Interest Rate is generally better than what you get in a savings account, and secondly, it is considered a safe investment.
What is a fixed deposit?
Fixed Deposit or FD is a savings account type that offers a fixed rate of interest for a fixed tenure. The investment made here can be withdrawn at any point before the maturity date with just a minor penalty. This scheme is typically offered by banks and financial institutions and is considered one of the safest investments with a low level of risk.
(Tip: Before investing in FD, using a fixed deposit calculator is highly advisable.)
What are the benefits of fixed deposits?
-
Tax-Saving
As per the law, under section 80C of the Income Tax Act, an investor can deduct up to Rs 1.5 lakh against the investment made from their taxable income in a year. So, along with assured returns, an FD also works as a great tax-saving tool.
-
Easy withdrawal
Once you invest in an FD, remember it can be withdrawn at any time, whenever you have an emergency. However, only a minor penalty is involved if you plan to withdraw the amount before the tenure ends.
-
Flexibility
You can invest in an FD for as small as one month to as long as up to ten years. The fixed deposit interest rate is quite lucrative in this country, and investing long-term is always beneficial. So suppose you have planned an essential event in the upcoming years; you can plan accordingly.
Which is the best platform to invest in a fixed deposit and also to use a fd calculator?
There are many platforms on the web where one can invest in an FD. However, to make it easy for all the readers, I’ll share my personal experience here. Firstly, you need to understand that now there is no need to visit banks in order to make such an investment. This is because since digitalisation has taken over, things can be quickly done via your smartphone.
I invested in fixed deposits via the Bajaj Finserv application around three months back, and believe me, it is super convenient. They also offer an FD calculator online, which can help you invest accordingly after thorough research and experimentation. Here is a step-by-step guide on how you can use this calculator –
- Download the official Bajaj Finserv app from the Play Store/App Store.
- 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.
