There are dozens of reasons why an individual decides to invest his surplus income in a fixed deposit. While some save it for educational purposes, others save it for more leisurely purpose consisting of travel, marriage, health plans. A fixed deposit is a feature provided by the bank which helps the investors to earn a profit over a period of time by just keeping their money in the bank.

Fixed deposits usually consist of lump sum amount which is deposited by an investor because he wants to feel safe and in control of his investment. It’s a very common knowledge that fixed deposit investment is the safest investment.

The very reason why people tend to entertain the idea of fixed deposits is because they don’t want to risk their hard earned money. The economy is unpredictable and so are the policies of the bank which keeps on changing.

Fixed deposit investment rate differs from bank to bank. What you have to look forward is to seek for the most favorable rate of interest. Interest rates offered by banks depend on the amount you invest plus the tenure of your investment.

Fixed deposit involves less risk compared to other invest options as it does not depend upon the market conditions. Market conditions usually tend to fluctuate which makes the investments risky. Fixed deposits have a fixed interest rates as it does not depend upon the market condition.

Fixed deposit helps you in replicating your funds by involving less risk. If you wish to earn 2% more interest rate than banks then investing in the Non-Banking Financial Company (NBFC) can be best. NBFCs offer you a higher rate of interest compared to banks. NBFCs can be less reliable than banks and so may be a little to invest in.

Studying about the various interest rates that the banks are providing is essential. A proper study of the market rate tells that which the most favorable bank to deposit the amount is. As an investor, our priority is to look for which provides a high rate of interest than any other bank. A proper research helps to save a lot of money in a long run as the rate of interest is to be paid in installments every month.

There are three main things to consider when it comes to fixed deposit calculator those the amount that is to be deposited, tenure for which it is to be deposited and the rate of interest that will be earned through it over the period of time. For instance, let’s consider three factors:


How big is the amount? Is it in thousand or in lakhs? What is the amount with which you are willing to trust the bank? Nowadays we all know that fixed deposits are not 100% safe although they are considered safer than the other investments they are not completely stress-free.

Interest rates:

Banks offer a higher rate of interest when you invest higher amount. Similarly, when the investment is low, the rate of interest would be low too. Thus in order to make the most out of the fixed deposits, one has to make sure that the investment being made is sufficient so as to receive a beneficial return on investment.


The tenure of the fixed deposit varies. It is a long term investment and thus it usually is above 5 years. Bank provides flexibility in deciding the tenure of the deposit. One cannot withdraw before maturity period or he/she will be penalized. Thus all these factors shall be considered well before the investment is made.

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