Saving money is not only about putting aside a chunk of your salary but also about investing in wise channels to grow it exponentially. Long gone are the days when people used to depend on their monthly salary to sustain their lifestyle. Therefore, to have a stable financial future for you and your loved ones, it is very important to have a solid plan.
In India, a Fixed Deposit is considered the most sought after and low-risk investment schemes as it offers guaranteed returns. Around five months ago, when I stepped into the professional field, I was very well prepared to start investing in it from day one. This is because, at the back of my mind, I knew it would benefit me in the long run. So, as advised by my colleague, I first used a FD calculator and then invested my money.
What is a fixed deposit?
It is an investment instrument offered by financial institutions that pay a fixed rate of interest for a definite time period. This period ranges from a single month to several years, and the money invested here cannot be withdrawn before the maturity date without incurring a penalty.
(Tip: Before investing your hard-earned money, calculate fd interest first and then go ahead.)
What are the benefits of a fixed deposit?
The prime reason why tons of individuals go ahead with this investment scheme is that it offers assured returns. The money invested here is for a fixed interest rate and period of time, so you know exactly how much you’ll be reaping.
The principal amount in a fixed deposit is guaranteed to be returned. Therefore, it is considered a low-risk and safe investment scheme.
Although FD investments are made for a fixed period of time, you can easily withdraw the money at any time, whenever you want. But remember, it comes with a price!
Which FD calculator to use and how to use it?
There are tons of such tools available on the internet. But, honestly, it’s better if I share my personal experience so that the readers can easily understand. I invested in fixed deposits around eight months ago from the Bajaj Finserv application, and in this app only, I explored this calculator. Believe me, this is one of the best tools to use before you invest your hard-earned money.
- Download the app from App Store/Play Store
- Sign up
- Tap on three bars situated on the top right on the home page.
- Choose ‘Try our Calculators’ and go to ‘Deposits Calculators’
- Choose ‘Fixed Deposit Interest Calculator’
- Fill in the required information
Using this tool to calculate fd interest beforehand is always a good idea. This is because, as an investor, it is essential to know what you’ll be getting when you put your money into it. Moreover, this helps in better financial planning and achieving goals timely.