Fixed deposits are usually considered a safe and sound investment as the rate of interest is fixed and does not depend on market fluctuations. Therefore, it is quite a popular investment among potential investors willing to earn a fixed return rate on their investment without any risk.
Moreover, the fixed deposit interest rate in our country is quite lucrative, which offers a good deal to potential investors.
What is a fixed deposit?
It is a financial instrument offered by financial institutions/banks where an investor deposits a lump sum of money for a fixed tenure, ranging from a few months to several years. The deposit further earns a fixed interest rate, which is predetermined at the time of opening the FD.
The interest rate offered on FDs varies depending on the bank, deposit amount as well as tenure. Generally, the longer the investment tenure and higher the deposit amount, the higher the interest rate the financial institution offers.
What is fixed deposit calculator?
It is an online tool that helps the potential investor to calculate the interest earned on a fixed deposit. When they use this tool, they provide them with an estimate of the maturity amount that will be earned at the end of the deposit tenure. Now, this is totally based on the amount invested, tenure, and the interest rate offered by the financial institution.
It takes into account the principal amount, rate of interest, and the duration of the deposit. Further, it then calculates the interest amount earned and provides the total amount payable at maturity, including the principal amount and interest earned.
Most financial institutions have their own fixed deposit interest calculator on their websites. Now, personally speaking, I’ve used the one offered by ICICI as well as HDFC, but both of them lack a good user experience. However, the one offered on the Bajaj Finserv application is quite good and super easy to use.
Why Fixed Deposit is Good Option to Plan Your Vacation?
FDs offered assured returns on investment, no matter what. This means that the rate of interest and the maturity amount is predetermined at the time of opening the deposit. This basically ensures that investors know exactly how much they will earn when the tenure ends, ultimately making it easier to plan for their vacation expenses.
These investment instruments have flexible tenures ranging from a few months to several years. This makes it relatively easy for investors to choose a tenure that aligns with their vacation plans!
Easy to start
This investment can be initiated easily via your smartphone only. In my personal experience, I did the same via the Bajaj Finserv application. They have undoubtedly made the process really quick and convenient.
When it comes to investments, a fixed deposit carries very less risk. This is because the interest rate is fixed here and is not affected by what happens in the market. This makes it quite a safe investment scheme for investors who do not want to take on too much risk with their money.
(Tip: Use a calculator to calculate fd interest beforehand for a better and wise investment.)