Appraisal money can be invested in two ways – keeping it in savings account and investing it in a Fixed Deposit. While a savings account would grow your money at an interest rate of 4% to 6%; a Fixed Deposit can help it grow up to 7%. In simple terms, if you have got an appraisal or bonus of Rs. 2000, a savings account would increase up to Rs. 2040 at the end of a year. However, if you put that money in a FD, your money would grow up to Rs. 2070 when the year ends.
Transferring Idle Money to Fixed Deposit
With the facility of auto-transfer, you can arrange for all your extra money to be transferred from your savings account to Fixed Deposit account. You can set a limit on the amount you want in your savings account and transfer the excess towards your fixed deposit. You can set that limit as per your preferences. For instance, you have Rs. 30000 in your savings account, plus the appraisal money amounting Rs. 7000. If you set your savings account limit as Rs. 35000, whenever you have amount greater than that, it will automatically get transferred to your FD. Usually, you can get that money transferred back to your savings account anytime you want by paying some penalty or withdrawal fees. The interest on that amount can be earned till the duration for which that money has been kept in FD.
Why Invest in Fixed Deposit?
Investing in a FD provides safety and stability to your savings while helping them grow. Depositing your money can get you assured returns, greater flexibility and better control over your investments. The tenures are very flexible as you can choose according to your needs from a year to 60 months. NBFCs provides attractive FD interest rates on depositing your money of up to 8.6%, along with providing excellent returns. You can choose the duration as per the interest pay-outs by using a FD calculator to compute your interest rates. The interest rates provided by them are according to the tenor you choose. From a cumulative interest of 7.6% for 12-23 months on a minimum deposit of Rs. 25000 to a yearly interest rate of 7.6%, it has something for everyone as per their financial needs.
How to Use a FD Calculator?
NBFCS provides the facility of using a FD calculator wherein you can compute your FD interest rates by filling some simple information. This includes choosing your customer type from an existing, or new. After that choose from cumulative and non-cumulative fixed deposit and the amount you want to deposit. Lastly, choose the duration or tenure for which you want to pay your instalment with interest. The online calculator would then show the maturity amount at the end of the period along with the principal amount and the interest amount you would earn.
Investing your extra savings in a Fixed Deposit is certainly a good way to watch your money grow over time. While you can always keep some money for your important expenditures, investments can earn you a good amount of returns. The interest you earn on your fixed deposits provide tax benefits too as it is fully taxable at the normal rate. Banks don’t charge withdrawal penalties anymore if you withdraw your amount before the amount has matured. If you are looking to invest your money in a property, NBFCs also provide home loans with an easy and quick approval starting from Rs. 30 Lakhs to 1 Crore.