Fixed deposits are known as popular instruments of investments. They provide guaranteed returns over the period range that is also flexible in the time duration.
No maters how the economy moves or interest rate changes, you will gain fixed returns at the time of maturity. You earn interest on the invested amount. FD helps you to easily accumulate a big investment amount.
Overview of fixed deposits
A fixed deposit is the investment instrument that the financial and non-banking financial institutions provide their consumers. People can invest a particular sum of money for a fixed time at the predefined fixed deposit interest rate. The interest rate can be changed from one bank to the other. But the interest rate applicable on fixed deposits is greater than the interest rate applicable on the savings account.
FD is available for different times, li.e. from the short-term tenure of 7-14 days up to the long-term tenure of 10 years. We can also call the term deposit the fixed deposit.
Benefits of the fixed deposits
Fixed deposits offer many benefits to the customer. If you want to get information on FD benefits, then you should read the following benefits.
Assured returns unlike the linked market securities result in huge losses because of the market volatility, assured rates, and fixed deposits that are offered on the returns of the investments. The capitals remain secure in the fixed deposits. Make sure the FD returns are greater than the savings account.
- Compounding benefits
With the investments under the fixed deposits, you can get the interest on the amount of the interest, thereby getting faster and the high returns on the multiplication of the money.
- Low and minimum investment
Fixed deposits are considered a good option because the number of investments can start at a low amount. This will not put pressure as you can invest as per your budget.
- Liquidity
The fixed deposit withdrawals are permitted but you will lose the interest amount in the missed duration. It will provide you the liquidity benefits since you can withdraw the FD amount in the case of any emergencies.
- Easy process
Fixed deposits are the easy to to invest in two modes, both online and offline, mobile banking and net banking.
- The great interest rate applicable to senior citizens
Senior citizens earn more amount from their life savings investments and move towards one more step to not compromise the retired life.
Conclusion
In this article, you get information related to the fixed deposit calculator. The applicable interest rate on a fixed deposit is easily calculated by the FD calculator. Also, you will learn about the benefits of fixed deposits.
Would you want to more understand about the interest rates on fixed deposits?
