How to Meet Your Financial Goals by Investing in Fixed Deposit?

How to Meet Your Financial Goals by Investing in Fixed Deposit

Fixed deposit is a perfect investment alternative for an investor looking for a guaranteed regular income. The amount you should invest in FDs ought to eventually rely upon your risk appetite and your liquidity necessities. In any case, among all the secured investment instruments, you can settle on, fixed deposit stands apart as it offers ensured, generous yields through a small lock-in period.

Getting the best fd interest rates is a major attraction. FDs possess several qualities – including its high safety factor causing individuals to pick it over other instruments regardless of low returns on the money invested.

Why invest in FD?

Besides assured returns, flexible tenure and the fact that FD is a low-risk avenue for investors, here are a few more reasons why Fixed deposit is the best way to meet your financial goals:

Helps in liability crunch

In some cases, liabilities emerge because of uncertainty and you may have the desperation of having money by then. In those conditions, you can take a credit against your fixed deposit. Loan advancement is accessible up to 90% of the principal amount. 

Rather than taking an unsecured loan at a high rate of interest, fixed deposit holders have the alternative to funding their crisis themselves i.e by taking an advance against their FD. A little rate (0.5% – 2%) of interest is charged over the applicable fixed deposit rate. 

And thus, one doesn’t have to pay hefty interest rates. Likewise, there is no compelling reason to break FD as well.

With Bajaj Finance Fixed Deposit you can avail loan against your fixed deposit. 

Partial Withdrawal is allowed

Partial or pre-mature withdrawals are allowed in case of FDs where the balance amount earns the original rate of interest. Options like a Bajaj Finance Fixed Deposit enable you to make partial withdrawals as per your requirement. 

In fact, you can avoid this and take a loan up to Rs. 4 lakhs against your Fixed Deposit.

Backed with Deposit Insurance of Rs. 5 lakh 

Both retail and small finance bank Fixed deposits are backed with an insurance of Rs. 5 lakh. It is guaranteed by Deposit Insurance and Credit Guarantee Corporation: DICGC, which is a wholly-owned subsidiary of the Reserve Bank of India or RBI. 

And if its safety that you are looking for, post office fd plans too are great. The USP of post office fd plans is their sovereign guarantee of being backed up by the central government.

Tax-Saving Option

Tax saver FDs help in bringing down investor’s taxable income pulling down tax to be paid too. Investors can put in up to Rs. 1.5 lakh of the amount in a tax-saving fixed deposit which can be quoted in deductions u/s 80C of the Income Tax Act, 1961.

Best FD interest rates in India

BankBest FD Interest rates for Regular IndividualsBest FD Interest rates for Senior Citizens
DCB Bank 7.60%8.10%
IDFC First Bank 7.50%8.00%
Yes Bank7.25%7.75%
Bajaj Finance7.60%7.85%
RBL Bank7.50%8.00%

Also, Best FD interest rates offered by Small Finance Banks in India

BankBest FD Interest rates for Regular IndividualsBest FD Interest rates for Senior Citizens
Fincare Small Finance Bank9.00%9.50%
Suryodaya Small Finance Bank9.00%9.25%
Jana Small Finance Bank8.25%8.75%
Utkarsh Small Finance Bank9.00%9.50%
Equitas Small Finance Bank8.00%8.60%

Planning Financial goals with FD Calculator

Debtor finance

An FD calculator not only helps you figure out the investment amount based on tenures but also can help differentiate best fd interest rates offered by different banks and NBFCs. It helps you make a well-informed decision by comprehending which bank provides the best interest on chosen tenure. If you haven’t used it yet, I strongly urge you to utilize the FD calculator to plan efficiently and save time. 

Every smart investor knows that to fulfil different goals, one must invest in different FDs. Utilizing different tenors can help you reach multiple investment objectives. This is why it is always recommended to divide your savings into more than one FD at a given time. 

You can use a Fixed Deposit Calculator to plan your investment goals. In just a few simple steps, investors can easily choose tenures and principles of FD to figure out how much they must-have for achieving a particular goal.

Fixed deposit is a perfect investment alternative for an investor looking for a guaranteed regular income. The amount you should invest in FDs ought to eventually rely upon your risk appetite and your liquidity necessities. In any case, among all the secured investment instruments, you can settle on, fixed deposit stands apart as it offers ensured, generous yields through a small lock-in period.

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