5 Good Reason to Invest your Bonus in a Fixed Deposit

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Excited about your bonus next month? Or wondering what to do with the additional money when you get that long awaited promotion? Well, the first idea that comes to all of us is buying that phone you always wanted, making a small weekend getaway or even putting it as a down payment for a loan. But you must try to resist these ideas and make it as your savings.

Saving money will help you to prepare for any financial emergency in the future. However, it is difficult to choose a single one from the plethora of investing and savings options available. You would definitely like to save it in an investment scheme that will give you assured returns along with the flexibility to withdraw the money in times of need along with incurring minimum risks.

While there are multiple investment options where you can get higher returns on your money, fixed deposits can get you good and assured returns in the long run.

Fixed deposit is a saving instrument where you can keep a sum of money invested for a fixed period of time and earn interest on it. It is one of the most secure and preferred investment tool by investors.

Here are the benefits of investing in fixed deposits:

Risk-Free Investment

Fixed deposit is one of the most popular and safest investments. This is because FD is not subject to market fluctuations and is backed by banks and financial institutions. You can also withdraw the money invested before its maturity during times of emergency, but pay a small penalty for the same.

Good and assured returns

Returns on Fixed deposit is often higher than savings account. Nevertheless, investing in an FD means getting the guaranteed returns that too in a greater value.

Fixed-rate of interest

Fixed deposit rates differ from bank to bank. However, you can enjoy the rate of interest in which you invested your money despite the market fluctuations. You must open an FD in a bank that offers a higher rate of interest, flexible tenure and low penalty on premature withdrawal.

Flexibility

You can choose a fixed deposit as per the investment period suitable to you. This means that you can fix the investment period of your choice, which can range from 7days to 10 years. It is important that you select the tenure carefully, so that you don’t have to withdraw the money before its maturity.

Forecast your earnings

You can determine your earnings by entering the tenor, investment amount and rate of interest of the fixed deposit in a FD calculator. With the information provided by the calculator you can decide better on the amount that would be collected after maturity and whether you should opt for a fixed deposit.

It is always recommended to save before you spend. Thus, save or invest some part of your bonus in a fixed deposit or any other investment option that is suitable for you and then spend it on things that you have been planning to buy.

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