An important factor to consider when investing in fixed deposits is the interest rates offered. Monthly interest rates for Rs. 8 lakh fixed deposit can vary across different financial institutions. In this article, we will explore how much interest you can earn on Rs. 8 lakh fixed deposit and the factors investors should consider before making any investment decisions.
What is Fixed Deposit (FD)?
A fixed deposit is a financial instrument wherein an individual invests a lump sum amount with a financial institution for a predetermined period at a fixed interest rate. FD provides a secure and low-risk investment option, allowing investors to earn predictable returns.
Benefits of Investing in FD
- Safety and Stability
Fixed deposits are considered a secure investment option as they are not linked to market fluctuations and have fixed returns. This makes them an ideal choice for risk-averse investors.
FDs offer a high degree of liquidity, which can be beneficial for investors. FDs can be easily withdrawn as per your requirements. But there are some penalties, check with financial institution before investing.
- Easy to Invest
Investing in FDs is a simple and hassle-free process. One can open an FD account with minimum documentation, and the entire process can be completed within a few minutes. Most financial institutions like Bajaj Finance offer online facilities to open an FD account, you can use Bajaj Finserv website or app to do that.
Bajaj Finance recently launched a new FD called ‘Bajaj Finance Digital FD’ for the tenure of 42 months. They offer one of the highest FD rates of up to 8.85% p.a. This FD is exclusively available on Bajaj Finserv website and app.
- Tenure Options
FDs come with a wide range of tenure options, ranging from 7 days to 10 years. This means that investors can choose the investment tenure that best suits their financial goals, requirements, and risk tolerance.
FDs can be a part of your overall investment portfolio to balance out the riskier assets like equities, mutual funds, etc. Diversifying your investments across different asset classes helps to reduce the overall risk of your portfolio and brings stability to your overall investment strategy.