Unfortunately, with easy access to credit, many people think that pulling out a plastic card and then paying it back with payments over a long time is the best way to go. Since the beginning, proper investment in the right channel has been considered one of the best ways to invest and save money. 

In the current era, for a better and more stable financial life, it is essential to save money. Around a year ago, when I got into my first job, I already had in my mind to invest. And, as advised by my colleagues, Fixed deposit or FD is one of the wisest investments. So, I used a fixed deposit calculator and went what was right for me. 

What is a Fixed Deposit?

A fixed deposit is a financial provision offered by financial institutions where one can deposit a lump sum amount and yield a higher interest rate as compared to a savings account. It is considered one of the safest investment options that help you earn relatively higher interest as compared to your regular savings account. Furthermore, it is excellent for individuals who do not want any kind of risk with their investment, as market fluctuations do not impact the invested amount.

What are the advantages of Fixed deposits?

• Guaranteed returns

FD is not linked to the market, so it is unaffected by any risks. Moreover, the rate of interest offered while the beginning of this investment stays the same throughout the tenure. 

• Flexible tenure

After you calculate FD interest and invest in it, remember that the investment tenure is flexible and depends on the deposit holder. Meanwhile, it is essential to know that each bank has its own minimum tenure rules.

• Tax Benefit

Almost every financial institution offers a tax-saver fixed deposit, which helps reduce the investor’s tax liability. One can easily claim a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act of India, 1961. However, remember that such FDs come with a lock-in period of 5 years.  

Here is a step-by-step guide on how you can easily calculate FD interest for efficient financial planning –

1. Download the Bajaj Finserv app from the App Store (iPhone) or Play Store (Android).
2. Sign up after entering your details
3. On the home page, click on three bars on the top right. 
4. Choose the ‘Try our Calculators’ option.
5. Go to ‘Deposits Calculators’ and choose ‘Fixed Deposit Interest Calculator.
6. Fill in the required details and experiment as per your requirement. 

(This is not a promotional write-up. Just sharing my personal experience for better understanding.)

Using an FD calculator is one of the best and most effortless ways to plan your financial life. However, recently Bajaj Finserv has revised its interest rate, and I was planning to invest for a minimum period of five years. The interest rate, which was earlier 7.40%, has been increased by 0.10% to 7.50%.