In India, FD investment has long been favored by potential investors seeking a secure and safe means of growing their hard-earned wealth. This investment instrument offers several advantages and has become quite a popular investment choice for a wide range of investors.
Moreover, the Fixed Deposit Interest Rate is quite pleasing by some financial institutions and helps investors build wealth over time. Basically, if you are looking for a safe and secure long-term investment, this is the right choice.
What is a fixed deposit?
Also known as a time deposit or term deposit, a fixed deposit is a financial instrument offered by financial institutions. It is an investment type where an individual or entity deposits a certain amount of money for a fixed tenure at a predetermined rate of interest. The funds here are locked in for the agreed-upon tenure, and in return, the potential investor receives interest on the principal amount.
This investment option is considered relatively safe as it offers an assured return rate. However, the rate of interest here is usually higher than that offered by regular savings accounts because of the fixed term and lack of immediate access to the funds.
Why invest in FD?
● Safe and Secure
FDs are considered a low-risk investment as they are usually offered by reputable financial institutions. Here, the principal amount is generally insured up to a specific limit, offering a level of protection against default.
● Flexible
Fixed Deposits come with various tenure options, ranging from a few months to several years. This enables the investors to choose a term that suits their financial as well as liquidity needs.
● Assured Returns
Fd interest rate is completely fixed throughout the entire investment period. This basically means that you know exactly how much interest you will earn, offering stability and predictability in returns.
● Regular income
This scheme can undoubtedly be an attractive source of regular income for individuals, participating retirees or those who rely totally on fixed returns. The interest amount earned can be paid at regular intervals, such as monthly, quarterly, or even annual, providing a smooth income stream.
● Diversification
FDs can be a useful component of a diversified investment portfolio. By allocating your hard-earned funds to fixed deposits, you can balance the risk as well as returns of your overall investment strategy and technique.
Which are the Latest FD Interest Rates 2023?
- Bajaj Finserv
- AU Small Finance Bank
- Capital Small Finance Bank Limited
- Equitas Small Finance Bank
- ESAF Small Finance Bank
Recently, Bajaj Finserv had revised its interest rate, and they have touched a whooping 8.60% rate of interest which is just amazing.
Around two months ago, when I was looking to invest in the same, one of my associates told me about the Bajaj Finserv application. Moreover, they also have an fd calculator tool to get an estimate of what you’ll be reaping out of your investment.
- On the home page, you’ll see the Investment Bazaar section
- Tap on Fixed Deposit
- Proceed further as per your suitability/requirements
