Best FD Interest Rates in 2023: Get the Most Out of Your Savings!
It is well-known that the earlier you invest your buck, the more you are in for greater returns. If you are young, you have a longer time horizon for your investments to grow and take on more risk. This ultimately leads to higher returns over the long term.
Around seven months ago, when I got into the professional field, I was planning to invest in fixed deposits due to its lucrative rate of interest. So, after using an FD interest rates calculator, I easily invested in the same via my smartphone.
What is a fixed deposit?
As the name suggests, it is a financial product offered by financial institutions in which an individual can deposit a lump sum of money for a specific time period. Now, this period usually ranges from a few months to a few years.
Further, when an individual keeps the money deposited for the agreed time period, they earn a higher rate of interest than they would with a regular savings account. So, when the term ends, the individual can withdraw the principal amount along with the accumulated interest.
What are its advantages?
● Assured returns
The first and foremost reason why Indians are more inclined towards fixed deposits is that it offers assured returns on the invested amount. This gives them a sense of safety and security.
● Easy withdrawal
Your money invested in a fixed deposit can be easily withdrawn whenever you want. So, in emergency times, if you require urgent money, you can easily withdraw the money, but a minor penalty is involved.
● Tax benefit
As per the law, you can get income tax deductions up to Rs 1.5 lakh per annum. This falls under Section 80C of the Income Tax Act of 1961.
This type of investment is a useful addition to a diversified investment portfolio because it offers stable returns and is less risky.
Which application offers the best FD interest rates 2023?
Investing your money is as easy as ordering food nowadays. You just need the right application! In my personal experience, I used the Bajaj Finserv application for the same, and within just a few taps, I was able to invest and that too with the best interest rates.
Moreover, the company has recently revised its interest rates, offering more benefits now. Like, in my younger brother’s case, who invested for five years, he was able to invest with an interest rate of 7.60%, which was earlier 7.50%.
How to calculate FD interest?
Using this tool is one of the most beneficial things to do before investing your hard-earned money. By entering just a few figures, you’ll have the exact numbers in front of you. Further, it saves a lot of your time and helps you execute your plan accordingly.
- Download the Bajaj Finserv app from the App Store/ Play Store.
- Sign up after entering your contact number
- On the home page, tap on three bars on the top right.
- Choose the ‘Try our Calculators’ option.
- Go to ‘Deposits Calculators’
- Choose ‘Fixed Deposit Interest Calculator’.
- Fill in the required details
- Experiment as per your requirement
All-in-all, if you plan to invest in an FD, it is highly advisable to use an FD calculator. Believe me, it is very beneficial in achieving all your financial goals.