In the current ever-evolving sphere of financial investments, agile investors out there are more inclined towards turning their attention to short-term Fixed Deposits (FDs) as a means of generating quick gains. This trend, which is witnessing an upsurge with time, is fueled by a combination of factors that make short-term FDs an attractive option for potential investors.
Today, in this article, we’ll explore the key aspects of this growing trend and why short-term FDs are becoming the go-to choice for investors seeking agility in their portfolios and how investors calculate fd interest india and opt for this lucrative scheme.
What are Fixed Deposits? Are short-term beneficial or long-term?
This popular financial instrument is the one where an individual deposits a lump sum amount of money for a predetermined period, earning a fixed rate of interest throughout. FDs are considered a low-risk investment option, making them appealing to a wide range of people out there who are planning to invest their hard-earned money.
(Tip: Always use an online fixed deposit calculator before investing your hard-earned money.)
The crucial decision between short-term and long-term FDs depends on the investor’s financial goals and risk tolerance. Short-term FDs typically have durations running from a few months to a year, offering quick liquidity and higher interest rates compared to the long tenures.
The benefits of short-term FDs include complete flexibility, allowing investors to adapt to changing market conditions, higher rates of interest leading to quicker returns, and the overall ability to mitigate interest rate risk by reassessing investments at regular intervals.
On the other hand, long-term FDs provide stability; they may keep the funds for extended periods, which ultimately limits liquidity and potential gains. Short-term FDs cater to those seeking agile investment strategies, enabling quick access to funds for emerging opportunities or unforeseen circumstances.
How to invest in Fixed Deposits in 2024?
Investing in FDs in 2024 is as easy as ordering your favorite food from your smartphone while sitting comfortably in your comfort zone. One of the most trending applications in the current times is ‘Bajaj Finserv’. I’ve been using this application for quite a long time now, and it is pretty efficient.
- Download the app from Play Store/App Store
- Sign up by entering your mobile number
- On the home page, you’ll see the Investment Bazaar section
- Tap on Open FD
- Proceed further as per your suitability/requirements
Which tool is beneficial while planning to invest in Fixed Deposits?
An Online fixed deposit calculator is one of the most efficient and necessary tools to use while planning to invest in FDs. It is super easy and convenient, and just by certain inputs, it gives you a clear idea of your potential investment.
This way, one is able to plan their finances and budget accordingly as per the investment objectives.
Conclusion
The rising trend in these terms reflects a clear shift in investor preferences towards agility and adaptability in their financial strategies. The overall flexibility in duration, higher rates, and the ability to mitigate the rate risk make short-term FDs a lucrative option for those seeking instant gains without compromising. Lastly, don’t forget to use a Fixed Deposit Calculator before initiating your investment.
