To be financially stable throughout your life, it is very important to invest your money timely. In India, the FD Interest Rate is quite lucrative, which pulls many individuals towards it. Moreover, the pros that come with it are just unmatchable.
Furthermore, before investing in an fd, one thing that every individual should keep in mind is a fixed deposit calculator. Many don’t know about it, but it is essential to use it as it will also help you save a ton of money and time.
What is a fixed deposit?
It is an investment scheme offered by banks or financial institutions where an individual deposits a lump sum of money for a fixed time period. This time period ranges from even a single month to several years, and the interest rate in this investment scheme is generally higher than the one offered on a regular savings account.
Moreover, in India, the fixed deposit interest rate is relatively high, which makes it a safe and sound investment scheme.
What are the pros of fixed deposits?
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Safe Investment
It is a safe investment as compared to other forms of investment. This is because, throughout the predetermined tenure, the interest rate remains constant and isn’t affected by what goes on in the market.
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Guaranteed returns
The rate of interest is fixed here for a fixed tenure. So, this factor offers assured returns on your money invested.
(Tip: Use a fixed deposit calculator online before investing.)
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Flexible
The financial institutions you tie up with allow you to choose the duration of the fd. This can range from even a single week to up to whooping ten years.
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Tax benefits
As per the law, the investors can get income tax deductions up to Rs 1,50,000 per annum. This comes under Section 80C of the Income Tax Act of 1961.
What is a fixed deposit calculator?
It is a tool used to calculate the maturity amount for your investment based on the prevailing interest rate for certain tenure. This tool helps you save a lot of your precious time by solving complex calculations within seconds.
Which FD calculator to use?
I’ve been using the Bajaj Finserv application for around six months now. In this application only, I explored the fixed deposit calculator online; believe me, it is one of the best and must tool to use if you are planning to invest in a fixed deposit.
- Download the app from App Store/Play Store
- Sign up after entering the required details
- Tap on the top left (three lines) on the home page
- Choose the ‘Try our Calculators’ option
- Go to Deposits Calculators
- Tap on Fixed Deposit Interest Calculator
- Enter required details
Conclusion
All-in-all, if you are planning to invest in an fd, it is highly recommended first to use an FD calculator India as it helps you to plan everything accordingly in a proper manner.
