Prudent Investor Tips: How Your FD Can Help You Fund Your Travel!
A fixed deposit is a sum of money that is invested for a specific time. Over time the deposited sum matures into a larger amount when the interest is added to it on a cumulative or non-cumulative basis. During its tenor, an FD may provide interest rate returns on a monthly, quarterly or yearly term or at its maturity date. Use online FD Calculator to calculate earn interest or maturity amount on invest amount of fixed deposit. FDs, if used well, can be the perfect source of income and you can use the money you earn from these investments for a range of purposes. These purposes can include things like fulfilling responsibilities towards your family, paying for daily expenses, purchasing assets and even travelling.
You Can Effectively Use Your FD For a Holiday in the Following Ways:
- Collecting or Saving Interest Returns: You can pool the income you receive from your FD and invest in in another fixed deposit account. Once the amount in this account matures, you can use that money to finance your travels to various places across the world. This alternative can help guard your FD as well as help you achieve your dream of a holiday!
- Using the Matured Amount: All fixed deposits have a period over which the amount grows and matures. This period is known as the tenor. Various FDs can have different tenors. A long tenor often helps the principle amount to mature drastically. Hence, once your deposit matures, you can use the final amount to finance luxurious travel for yourself or your family.
- Loan Against Deposit: Numerous banks offer the provision to borrow a loan against your fixed deposit returns. Hence you can borrow against your interest pay-outs of the fixed deposit to finance your vacation/
- Creating a Deposit For The Purpose of Travel: If you are a real travel enthusiast and seek to travel a lot of places, you always have the provision to create a fixed deposit solely for the purpose of travel. This means you will have to save a sum of money and lock it in the bank over a period of time, which ensures that you save for that dream holiday.
Why You Should Consider Fixed Deposits
Fixed deposits are a safe source of finance that are immune to market fluctuations and changes. They provide steady income over a period of time and are highly liquid. Here are some reasons why you should consider investing in an FD:
- FDs are risk averse from market fluctuations.
- They provide stable income over a period of time.
- These investments offer your money growth in terms of value.
- Fixed deposits offer attractive interest rates, that are more than those offered by traditional savings accounts.
- The interest returns can be used by you for a range of purposes like traveling, purchasing assets and much more.
- can break a FD prematurely and use the money for emergency situations. Hence, you can benefit with better liquidity.
On the whole, FDs are a feasible financial option for everyone—a young or a retired investor and everyone in between. However, before making an investment, do spend considerable time studying your requirements and analysing the purposes for your investment. This can help you decide on a scheme that is most suitable to you.
Bajaj Finance can guide you on your decisions regarding an FD investment since it offers numerous schemes that can secure your finances and provide you safety in the future.