What is your favourite tourist destination? Paris? New York? Or is it impossible to decide because there are too many places to wish to visit? A holiday abroad might seem a distant dream to some, but not so for those who invested their savings wisely in a risk-free investment option, like a fixed deposit.

FD schemes can be broadly divided in two categories, namely cumulative and non-cumulative. While cumulative schemes pay out interest at the end of the tenor or maturity term of your FD, the non-cumulative schemes pay you interest on a periodical basis. This can be yearly, monthly or even quarterly. FDs are a good mode of investment for saving your money and even a source of income for senior citizens or those seeking retirement. They come with a range of maturity terms that you can choose from. They are also highly liquid; an FD can be broken any time the need for emergency cash arises.

The Benefits of Investing in a Fixed Deposit

Financial gains from good interest rates and high levels of safety make this option highly favourable for investors. If you select fixed deposits as a form of investment, you can gain benefits like the ones listed below:

  1. Interest Income: This is the direct income that you will receive from a fixed deposit. Depending on whether the deposit is cumulative or non-cumulative, you will receive returns periodically or compounded at the end of the tenor.
  2. Risk-free Investment: With the numerous investment options available, experts often classify them into two brackets: low risk and high risk investment options. High risk options are usually the options that have influence of market forces, like equity and mutual funds. However, fixed deposits are low risk as they are not affected by market forces and guarantee a fixed return on your investment.
  3. Measurable Returns: In this investment option, you are assured of complete financial gains that can be clearly understood. Your interest can also be calculated using an FD calculator, which will help you measure the exact returns that you can expect from your investment.
  4. Flexible and Customized Tenor:When opening an FD, you are free to choose a tenor that is most suitable to you. A long tenor can ensure that your investment gains more value and appreciation of interest, while a short tenor can give quicker returns.
  5. Good Use for Savings: Often, individuals with cash savings find themselves putting this amount in their bank account, which is not a productive use for it. If you convert this into a fixed deposit account, you can actually make your savings grow.
  6. Liquidity: FDs offer liquidity since there is no rigid restriction over the withdrawal of the FD. You can easily break the deposit to raise cash for urgent or unplanned needs. You may be asked to pay a penalty over early withdrawal or lose the full interest, but an FD still gives you the scope for liquidity when you need money during emergencies.
  7. Scope for multiple gains: Any individual has the liberty to open more than one fixed deposit, at any given time. There is no limitation over the amount of FDs you own. The higher the number, the more you will gain financially.

So, stop waiting and instantly start your investment in FDs with Bajaj Finance . You can gain from attractive interest rates and also use the FD calculator to forecast your returns.

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