Have you been looking for safe investment options? Or, in the right words, are you looking for the best-fixed deposit? Have you ever wondered – what has kept FDs on top of the investment tools list for all these years? The very first reason for that is – safety. Just to brush up – a fixed deposit is an investment vehicle that lets the investors put their idle money in and turn it into a guaranteed return. Now, you know you will get your returns, but how many returns.
We know that FD interest rates are comparatively lower than with riskier investments such as stocks and securities. But, the good thing is – that today, we can see banks giving you high-interest rates like never before. Let us know more about this as we go on.
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What are the Reasons to Invest in a Fixed Deposit?
When there are so many investment options out there – why do you have to choose a fixed deposit? Have you ever wondered about this? Here, we will tell you what makes you choose the FD and also what makes it one of the most sought and famous investments of all time. Now, it is sure that you are not going to just look at the ICICI bank’s FD interest rates and choose to invest in it; there are bound to be other reasons; what are they? Here they are:
1) It is a Safety Basket
A fixed deposit’s returns are always known to be guaranteed. You would get the same rate of return that was agreed upon when the FD was opened at first. This would not be the case when it comes to market-led investments – which would give you returns depending on the market interest rate swings. Even if interest rates fall, you will receive the same rate of interest that was agreed upon. As a result, the fixed deposit is more secure than other types of investments.
2) You get to choose your interest payouts
You would mostly have two options for collecting interest on your principal, and they are: cumulative or non-cumulative. If you choose the cumulative option, then the interest would be compounded and transferred into your fixed deposit account at the conclusion of your fixed deposit term. Non-cumulative interest can be collected at regular periods, such as monthly, quarterly, or yearly.
3) You get to choose the tenure of investment
The term of your fixed deposit can be as short as seven days and as long as ten years. This would give you the freedom to choose a suitable duration based on your investment objectives.
4) You get to choose from different banks
You can choose your preferred FD from FDs and banks that have different features to offer to you.
So, are you ready to find some of the best interest rates offered for FDs in 2022? Also, remember that interest would also vary according to the tenure that they are being invested for.
Top FD Interest Rates for 2022
- SBI Bank Tax Saving FD – 5.30%
- Punjab and Sind Bank – 5.30%
- IndusInd Bank Tax Saver Scheme – 6.00%
- IDFC First Bank – 5.25%
- HDFC Bank Tax Saving FD – 5.35%
- PNB Tax Saving FD – 5.25%
- Canara Bank Tax Saving FD – 5.25%
- Union Bank of India Tax Saving FD – 5.40%
- Axis Bank Tax Saving FD – 5.40%
- IDFC Bank Tax Saving FD – 5.25%
- Bank of Baroda Tax Saving FD – 5.25%
- Shriram City Union Finance FD – 7.75%
Do you know what the best choice would be? It would be to use a fixed deposit calculator to know how many returns you would make.
What is a Fixed Deposit Calculator?
The amount of interest that you can receive on your deposit is determined by a number of criteria, including the amount invested, tenure, rate of interest, frequency of interest computation, and taxation. Using an FD calculator, you can calculate the returns on your investment.
The whole procedure of calculating the amount is simple and straightforward. Simply input the deposit term, and select the FD type (reinvestment, quarterly, or monthly payment). The investment amount, the rate of interest, and the account opening date.
There are quite a lot of benefits that you will enjoy when you choose to invest in a fixed deposit, and what are they?
What are the Perks of Investing in a Fixed Deposit?
It’s not enough to know what fixed deposits are; you also need to know what they’re good for.
- Fixed Deposits are risk-free investments with predictable returns.
- The principal amount invested is not a danger.
- You can choose to collect the interest earned on a monthly or quarterly basis, or you can choose the cumulative method and receive a lump sum payment at maturity.
- Fixed Deposit returns are not affected by market fluctuations.
- On Fixed Deposits, most banks provide elderly citizens a 0.5% greater interest rate.
- When there comes an emergency and you need the money – you can apply for a top-up loan against your Fixed Deposit.
If you want assured profits and don’t want to risk your money, a Fixed Deposit is a fantastic investment option. Furthermore, if you need a loan from your bank, you can use your FD as collateral. Apply for a fixed deposit now that you understand what it is and how it operates.
Conclusion
Most importantly, you will have to know that fixed deposit interest rates will always vary. You would have to keep looking out for what the bank or the NBFC has to offer you.
