Savings alone are not enough to grow your wealth. You can turn your savings into a substantial net worth only when you invest in options according to your risk appetite and returns expectations. There are various investment plans carrying high, medium and low risk that offer returns in accordance. A fixed deposit is one such option that is among the most sought after avenues of investments. Here’s why.
FD offers principal protection
Fixed deposits are known to carry zero to low risk as the interest rates are not linked to the market and so, remain unaffected by the fluctuations. Since the interest rate remains unchanged throughout the tenor, you don’t lose your principal amount due to market fluctuations.
FD generates assured returns
Since the fixed deposit interest rates remain unchanged throughout the tenor, your returns are guaranteed. However, when investing in company FDs, make sure that they have high stability ratings. These ratings indicate high credibility of the issuer and also guarantee timely payment of interest and return of your principal. For instance, Bajaj Finance Fixed Deposits have the highest stability ratings of FAAA and MAAA by CRISIL and ICRA.
FD enjoys the compounding power of money
When you invest in a fixed deposit, your principal amount is locked in for the entire tenor. Depending on the compounding frequency, interest is added to your principal every time interest is calculated. To this effect, the interest is calculated on an increased principal amount. Thus, your savings grow manifold until maturity.
FD returns can be calculated beforehand
Issuers these days offer Online FD Calculators that allow you to calculate your maturity returns even before investing. All you have to do is enter simple details like FD investment amount, rate of interest, and tenor into the calculator. On submitting these details, you can see the total interest earned and maturity proceeds.
FDs offer liquidity to achieve financial goals
You can also use the FD calculator to plan your finances and investments. Firstly, you can optimise your FD returns by comparing the interest amount that you can earn by investing in different FD schemes offered by various issuers. Next, you can align your financial goals to various FDs maturing at different points in time so as to enjoy liquidity to achieve them conveniently.
An interesting fact to keep in mind is that the RBI has reduced the repo rate by 25 bps on 4th April 2019 for the second time in a row. Since FD interest rates are linked to repo rates, they may alter in the near future. So, invest your savings in a fixed deposit now at the current interest rate in India to gain from the best rates and optimise your returns.
To enjoy the safety and stability of your investments and earn high interest rates, invest in Fixed Deposits like those offered by Bajaj Finance. These FDs enjoy highest stability ratings like FAAA by CRISIL and MAAA by ICRA. Further, the FDs interest rates offered by Bajaj Finance are among the highest in the country. You can earn up to 8.60% as a regular investor and up to 8.95% as a senior citizen when you invest in an FD payable at maturity for at least 36 months. So, apply now to accumulate wealth for a financially healthy life.