A healthy way to secure and grow your earnings is to invest regularly. Depending on the type of investment, this growth is either quick or periodical. However, while you may be tempted to see quick returns, you should know that investments that promise quick returns to carry a higher risk quotient. If you’re a risk-averse investor, a great option you can consider is a fixed deposit investment. A fixed deposit in India is one of the more trusted investment avenues and one you should take advantage of whenever your finances permit you to.
If you’ve ever wondered why an FD is such a favorite among investors, read on.
Guaranteed returns assured by a fixed interest rate
One of the best benefits of investing in an FD is its fixed interest rate. This implies that the interest rate applicable on your FD is unaffected by market volatility and you are assured of returns at the end of the tenor. This is doubly beneficial as it also aids in future planning with the help of an FD Interest Calculator.
Safe and secure investment option
As investments go, an FD is one of the safest options you can choose from. Top-tier financial institutions offer FDs that are rated by credit rating agencies, and this rating is an indication of the FD’s stability and security. This is why you should always check the ICRA or CRISIL rating of an FD before investing.
After having understood why to invest in an FD, you need to know when to invest in one. Keep reading to learn how to identify the best time to invest in a fixed deposit scheme.
After you’ve built a healthy investment corpus
Before investing, you need to build up a decent amount to invest. If you are accustomed to saving money, then this shouldn’t be a hard task. However, if you tend to spend your paycheck by the end of the month, consider setting aside a percentage of your income and steadily grow that corpus, and then make your FD investment.
The larger the investment, the higher your returns will be, thanks to the FD interest. As there is virtually no risk involved, you’re assured your full principal investment amount along with profits. Therefore, the best time to invest is after you’ve built a sizeable corpus and you’re ready to enjoy the power of compounding interest.
By keeping an eye on the repo rate
The interest rate offered on FD is directly linked to the current repo rate set by RBI. If there is any change to that rate, it will soon reflect on the FD rates as well. Keeping up to date with the news about repo rate changes is crucial to timing your FD investments. If the repo rate dips, as it already has in 2019, you have a small window before financiers lower their interest rate offerings. Use this time to lock-in an investment at a higher interest rate. Additionally, if the rate goes up, wait for the financier to update the FD interest rates and leap at the opportunity to bring in higher returns as this is most likely the best rate you may get.
In preparation for a future financial obligation
An opportune time to invest in an FD is when you’re preparing for a future financial obligation. For example, if you’re thinking of preparing for your child’s education costs in the coming years, investing immediately lets you take advantage of the flexible tenor offers on FD investments, which allows you to get the best interest rate possible. Thinking ahead works exceptionally well as it expands your investment options for maximum returns.
A fixed deposit is a great way to grow your wealth without undertaking any additional risks. The Bajaj Finance Fixed Deposit is one of the best in India because of the fact that offers a high-interest rate and has notable stability ratings. You can get an interest rate of 8.95% as a senior citizen and 8.60% as a regular investor on a 36-month or longer tenor, payable at maturity.
This FD is rated MAAA by ICRA and FAAA by CRISIL, indicating the highest level of security so you don’t have to worry about your money. The minimum amount for a fixed deposit with Bajaj Finance is Rs.25,000, making it an affordable investment option. You can even apply online by entering your details and begin investing today.