Investing in the FD is one of the easiest ways to make money. One can easily make his/her money work by opting for investment in fixed deposit. A type of savings account meant for secured investment, FD ensures that the amount invested is safe and offers a better return on investment over a period of time. A fixed rate of interested is provided on investment which turns into considerable returns for the investor.
Fixed deposit is safer than other forms of investment. There are various options such as shares and equity mutual funds which aren’t as safe as FD. Moreover opening an FD account is much easier than you think. The best parts are the benefits that come with having a fixed deposit account.
Here are some of the benefits that you will gain if you opt for an FD account:
- It promotes savings:
A fixed deposit account promotes savings. It helps you be cautious of the transaction and help you achieve sustainability. Even in tough financial situations, you look to save as much as you can. Simple reason is that you don’t want to break your FD unless it’s very important. Thus savings is promoted in order to meet the urgent needs.
- The high rate of interest:
A fixed deposit will help you earn a better return on investment with the help of high rate of interest. Thus you can make a considerable amount of money by keeping your money in the bank. And when the time comes i.e. your deposit matures, you can avail the benefits. Banks and NBFCs also provide the FD calculator tool for calculating your interest.
- Assured benefits:
As discussed on several occasions above. It is one of the safest forms of investment. Thus you are entitled to receive benefits that are assured once your deposit completes its tenure. Added benefits such as securing easy home loans against your FD are realistically possible.
- Future needs:
You might have a decent financial condition right now, but nobody can predict the future. It might so be that the unpredictability of future and turn of sad events might squeeze the cash flow. At this moment, FD will turn out to be handy. Be it your business investment or any other lump sum expense, with the help of fixed deposit you will be able to make it a reality.
- You decide tenure:
The amount of time for which your money will stay with the bank will be decided by you. Higher the tenure, higher the rate of interest you will receive. You can decide for how long you want the FD for, 30 days, 5 years or 10 years. Thus you have flexibility in deciding the tenure of your FD.
- Split FD account:
An individual can have more than one fixed deposit account. Thus you can opt of FD in a different branch or even different banks. You can save a lot of money through a tax on investment by splitting your deposit. Everybody has their own goals which differ from person to person, thus you have to decide which suits your needs better.
Before you invest in a fixed deposit, it’s essential to know about the tenure. Also, you need to know that you cannot ask for your invested money before its maturity. In case you opt for premature withdrawal, not only will you receive a lower rate of interest than decided but also you will be charged for it. The essential calculation is important before you jump into getting a fixed deposit account. Use online tools such as FD Calculator to understand your investment better. It will help you plan efficiently.