There are various reasons why you should invest your money in a fixed deposit. Due to the prevalent market conditions, the growth in various sectors has decreased. The economic growth is stagnant; return on investment is decreasing while the risk is increasing.
That is the reason why you should invest in a fixed deposit which is safer and risk-free investment, and it also has a higher return among the low-risk investments.
If you are wondering, what is the interest rate for the fixed deposit that you will get when you invest in a fixed, you can easily calculate that by using an FD rate calculator.
So here are various reasons why you should invest your money in a fixed deposit in 2020:
Whenever you compare two investments, the basic criteria of comparison between those two has to be the risk. So when you invest in a fixed deposit you get the full security of your money which is not affected by the market condition, whereas for other modes of investment which involve risk, it’s not advisable to invest your money in them because of the market fluctuations.
One of the reasons why it is advised to invest your money in fixed deposits is because you get a higher return on your investment compared to other market-linked modes of investment. You can compare your return on investment in advance by using an FD rate calculator.
Personalized terms of investment:
In a fixed deposit, you should go for terms that suit you. This means that you can determine the various parameters on which the amount of interest will depend. You can decide the duration of fixed deposit, which is very important when it comes to determining the rate of interest.
You can also determine the pay-out frequency. There are two types of pay-out, cumulative and non-cumulative. In cumulative pay-out, you get the complete amount at the maturity and in non-cumulative pay-out you can choose from various frequencies of pay-outs.
You can use the FD rate calculator to choose a customized investment plan for you.
Variety of schemes:
There are various schemes that are a bank or government initiated such as the post office fixed deposit. This type of fixed deposit is backed up by a sovereign guarantee of Government of India. This type of investment is safe because the liquidity is provided by the government.
Post office FD interest rates are determined by the government of India and are low as compared to Company FD rates. For example, with Bajaj Finance FD you can get up to 7.85% interest on your fixed deposit whereas Post Office FD interest rates are up to 6.7%.
A question, which people often ask, what is the interest rate for a fixed deposit from me, and is this rate of interest the highest? To ensure that you get the highest rate of interest, check the various schemes that are available and choose the scheme that suits you the best and also use an FD rate calculator before making a decision.
There are various good reasons to invest in fixed deposit in 2020. You can avail a good return on your investment. Avoid the market risk and invest securely. You can also choose your terms of investment while investing in a fixed deposit. And it is easy to calculate your fixed deposit return by using an FD rate calculator.
You can also avail various schemes and avail higher interest rates, from Corporate FDs such as Bajaj Finance FD which is currently offering interest rate up to 7.85%. With flexible investment terms such as flexible tenors, freedom to choose periodic interest pay-outs and loan against FD, it is a prudent investment decision to invest in a fixed deposit in 2020 and lock-in the prevailing high interest rates.