Fixed deposits (FDs) are an attractive investment option for people looking to earn a fixed return on their investment without taking much risk. Investors who have a large sum to invest can benefit from the higher returns offered by fixed deposit. This article provides information on how much monthly interest can be earned on Rs. 3 crore investment in FD.
Benefits of investing in fixed deposit
- Guaranteed returns
Fixed deposits offer guaranteed returns to investors. Unlike other investment options such as mutual fund, stocks, the returns on fixed deposits are not subject to market fluctuations. Investors get fixed interest rate during the entire tenure of their investment. - Flexible tenure
Investors can choose the tenure of their investment that aligns with their financial goals. FDs are available in various tenures ranging from a few days to several years. Bajaj Finance offers flexible tenure on FDs, ranging from 12 to 60 months. - Higher interest rates
Compared to savings account, much higher interest rate is offered on FDs. The interest rate on fixed deposits varies from different financial institutions and can range from 5% to 10% per annum. Some financial institutions also offer higher interest rates to senior citizens, making them an attractive investment option for those seeking higher returns. - Easy liquidity
FDs can be easily withdrawn before the maturity date, although a penalty may be charged for early withdrawals. Financial institutions have different rules for premature withdrawal of FDs. It is recommended to check the terms and conditions before investing.