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Tag: fixed deposit

How to Fulfil your Dreams with the Best Investment Options?

All of us have dreams and personal goals that we relentlessly pursue. At times, our goals may appear to be too far-fetched or even unattainable. They may appear to be too expensive and beyond our reach, financially. By exercising financial discipline and making wiser investment decisions, we can have greater control over our financial future and fulfil many of our financial goals.

The key to financial success is in being aware of the various investment options available in the market and choosing the most suitable ones. Among the various investment options available to make dreams come true, fixed deposits score over others because of these features:

 

  • Safety of your Investment

 

An investor needs to be sure that his investment is in safe hands. A fixed deposit has been a preferred financial instrument as far as the security of your investment is concerned. Apart from FDs offered by banks there are several NBFCS that have entered the market with similar products.

For instance, Bajaj Finance Fixed Deposit not only gives you high returns on your investment but also offers flexible tenors to meet your liquidity needs. You can get an FD interest rate of over 8% on Bajaj Finance Fixed Deposit, which is higher than the market average.

Bajaj Finserv also offers pre-approved loans, cards, insurance and EMI Network offers to help you fulfil your financial needs. Click here to discover your pre-approved offer.

 

  • Guaranteed Returns

 

An FD offers you guaranteed and predictable returns. Using an FD calculator, you can determine the exact amount that will be available to you at maturity. Though bank FD interest rates have fallen in recent months, there are several corporate FDs that offer you attractive returns.

 

  • Liquidity

 

If you need money periodically, you can opt for a non-cumulative FD and withdraw the interest amount as periodic payments. You can choose a monthly, quarterly, half-yearly or yearly scheme based on your requirement.

If you opt for a cumulative FD, the interest amount will be re-invested in to your capital and will generate higher returns.

 

  • Availability of Loans

 

Most banks and financial institutions offer loans against FDs. The amount of the loan usually hovers around 70-90% of the FD amount. There is no processing fee on such loans and the procedure for availing these is very simple. The interest on these loans will be 2-2.5% higher than the interest rate that you get on the FD. You will, however, continue to earn interest on your FD.

The repayment can be done in convenient EMIs and the bank does not charge any penalty in case you pre-close the loan. Loan against FDs can help you tide over financial emergencies in your life. Very few financial instruments give you this kind of flexibility.

 

  • Ease of Operation

 

An FD is convenient and easy to operate. Most banks and NBFCs offer customers the facility to login to their websites and create FDs online. You can track your investments on a real-time basis and make any change that you may want. Pre-closure of FDs can also be done online, and the money would be automatically credited to your savings account.

Traditionally, fixed deposits have been the most preferred savings instrument in India. With NBFCs and other companies entering the market, today you have several options to choose from. FDs offer a lot of flexibility and convenience while guaranteeing the safety of your money. It is one of the safest investment options available today.

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Top Investment Plans for Senior Citizens

Retirement is a phase of life that everyone looks forward to living comfortably. Individuals start planning for their finances early or at least before the retirement phase peeps in. There are various concerns when doing investment planning post-retirement. The major challenge is that the source of income is limited and the options for taking risks are less. Despite that, one needs a surplus amount to meet their sustenance needs.

Hence, it is advisable to look carefully for investment options based on your post-retirement financial goals and needs. If you are a senior citizen or on the verge of retiring, you may consider investing in schemes below.

1.Senior Citizen Savings Schemes(SCSS)

The scheme is specially tailored to meet the financial needs of senior citizens and hence should be considered as a part of your investment portfolio. The primary criteria to be eligible for the scheme is to be above the age of 60. It can be availed from any bank or post office. The maximum investment allowed in this scheme is of Rs 15 lakhs at the interest rate of 8.3% annually, which is reset every quarter. The scheme is covered under tax benefits of Section 80C up to Rs. 1.5 lakhs.

However, the investment is locked in for five years, which can be extended further up to 3 years. You can make premature withdrawals in this scheme. For early retirees, the funds should be invested in SCSS within a month of receiving the retirement funds.

  1. Fixed Deposits

Another popular choice for senior citizens when it comes to investing is FD. In case of fixed deposits, banks, as well as financial companies, offer competitive interest rates to senior citizens. FDs score high on safety and security of funds with a good amount of returns. FD’s with longer tenure have higher gains and benefits, but you can also invest in it for short-term needs.  Unlike other schemes, FD provides flexibility to invest in tenure ranging from 7 days to 10 years. Moreover, with Bajaj Finance, senior citizens get an opportunity to avail 8.20% interest on their investment as compared to other investment options.

  1. Post Office Monthly Income Scheme(POMIS):

POMIS is a five-year investment scheme by Indian Post where an individual can invest up to Rs 4.5 lakhs and Rs. 9 lakh in a joint account with a minimum investment starting at Rs 1500.  The interest rate offered in this scheme is 7.8% annually, which is payable monthly and is fixed for a maturity period of up to five years. Though this scheme does not qualify for any tax benefits, it is considered to be ideal and safe investment scheme for senior citizens offering higher yields with stable returns.

  1. Mutual Funds

Mutuals funds signify risks, though this option is known for their higher returns on investment when invested in right equities. The interest may go as high as 20% in mutual funds with the associated risk factor. So, it is always advisable to start off with investing in low risk mutual funds and then move on to higher risk high-performance mutual funds. Depending on risk profile, one may consider investing a percentage of their funds into equity mutual funds(MFs) due to their nature of high returns. While you take risks, one way of reducing the risks is to diversify the investment portfolio across a variety of industries. Debt funds are another good alternative for senior citizens due to their obvious liquidity.

  1. Tax Free Bonds:

Bonds are securities issued by government-backed companies or projects like Indian Railway Finance Corporation, Power Finance Corporation Ltd or National Highway Authority of India to raise finances with reasonable interest rates. The interest earned on these bonds gets credited to bond holder’s bank account. One can also trade these tax-free bonds as they are listed as securities on the stock market.  Currently, tax-free bonds of top rated public sector companies on an average offer a yield of 6.4-6.5 percent. As the investment period is longer ranging over 15 years or more, one must plan in advance to include tax-free bonds as a part of their retirement plan.

The last thing you want to worry about post-retirement is the shortage of funds. Hence it is best to plan and opt for the best investment plans that suit your needs. A right investment planning boosts your income but can give you the perks of retirement life that everyone hopes.

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Benefits of Using an FD Maturity Calculator

One of the most popular form of investment in India is fixed deposit. It’s an investment that is made with banks or financial institutions for a certain period of time at a fixed interest rate. When you open a fixed deposit account and lock in a certain amount of money, you’re lending the money to the financial institution. The institution will give you the interest on the money for the period you’ve invested.

Before you make an investment as fixed deposit, it is necessary that you do a proper market research on it. It’ll help you to know all the terms and conditions about fixed deposit and rate of interest. This can vary between different banks and financial houses. You can know which bank offers the highest FD rates and open FD at the best company for fixed deposits in India.

Know How to Use Bajaj Finance Fixed Deposit Calculator

Once you decide the financial organisation where you will open your fixed deposit account, use of the FD maturity calculator. you can find this on the official website of the financial organisation. Using the FD interest calculator, Excel calculations aren’t necessary. you’ll know the exact amount of money when the fixed deposit matures. You’ll also know how much you stand to gain. This can also help you decide the amount that you should keep as fixed deposit.

You should be aware that any fixed deposit opened for a period of less than six months is calculated for simple interest. If you make the investment for more than six months, the interest on the amount is calculated using compound interest.

You should also know that the returns you get from fixed deposits are taxable. If you want to get tax benefits, you need to open a fixed deposit account available for getting tax benefits. So, when you open FD at the best interest available in India, you won’t receive any tax benefit on the interest. The return you receive on fixed deposit as returns is around 3.5% to 5 %.

How to  Use Fixed Deposit Interest Calculator?

Using the fixed deposit interest calculator is pretty simple. It’s like a regular calculator. Enter in the necessary details such as principle, rate of interest, and tenure. This shows you how much you can gain at the end of the deposit period.

Using a fixed deposit calculator can help you make real time calculations and compare various fixed deposits. Apart from this, you can save valuable time and effort. This lets you do all the necessary calculations without having to worry about going to the bank.

Steps Involved in Using the FD calculator:

  • You need to enter the amount you wish to invest as fixed deposit and know about the maturity amount. This is what you’d call the principal amount.
  • Choose from the options provided for the tenure of the fixed deposit. You can choose from a variety of options such as yearly, half-yearly, monthly etc. according to your need.
  • After this, enter the rate of interest the bank or financial institution is offering on fixed deposit with high rate of interest. This is the percentage the bank will offer you for locking in the money.

  • After filling all the details on the FD interest rate calculator, start the calculation. The total amount you’re supposed to receive will get displayed instantly. The amount includes the principal amount along with the interest on the fixed deposit.

Once you’re aware of how much you can gain from a fixed deposit, you can go ahead and invest it. You can also plan out other investments based on what you can do to ensure that you have a diverse portfolio.

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