Travel can relax and rejuvenate you, whether you go for scenic locations, romantic getaways, or adventure trips. Fewer planes, lack of staff, and increasing fuel costs are just some of the reasons why airline ticket prices have increased by 20-30% since the pandemic.
Whether you plan to travel by air or not, a holiday can be heavy on the pocket. Thankfully, you can go on a vacation without straining your budget by planning in advance and investing smartly. This is particularly easy when you invest in a reliable FD and choose an issuer with the highest FD interest rates.
Fixed deposits are one of the most ideal ways to save up for your dream vacation, as there’s virtually no risk involved in investing your money. In fact, they help you enjoy fixed returns without exposing your earnings to market volatility.
As such, you can invest knowing full well that you will get the promised returns. To understand how you can capitalise on the highest FD interest rates to plan the perfect vacation of your dreams, read on.
Better Than A Savings Account
Stashing any surplus funds you may have in a savings account may not be ideal since the interest rates are minimal, between 3.50% to 5%. In this case, your savings are at risk of decreasing in value due to inflation.
In contrast, top FD issuers offer rates up to 7.95%. You can grow your savings conveniently with a reputable issuer that offers both safety and high returns. Take a look at some of the highest FD interest rates from NBFCs.
|Issuer||Non-senior citizen FD interest rate||Senior citizen FD interest rate|
|Bajaj Finance||6.60% to 7.70%||6.83% to 7.95%|
|PNB Housing Finance||6.80% to 7.55%||7.05% to 7.80%|
|Mahindra Finance||6.90% to 7.40%||7.15% to 7.65%|
Disclaimer: The rates mentioned above are subject to change as per the issuer.
Make sure you compare the rates offered by various issuers so you can book a deposit with the
highest FD interest rates and finance your holiday with ease. Once you know the issuer you are going with, you can forecast your earnings using the FD calculator. This way, you can plan your holiday budget in advance and invest accordingly.
Offer more safety than other investments
One of the most important aspects of choosing investments is knowing the risk they pose to your capital. FDs are a top choice as they offer you returns you can rely on compared to mutual funds, equity and other options.
Certain bank FDs are guaranteed by the Deposit Insurance and Credit Guarantee Corporation up to Rs.5 Lakhs and post office deposits also come with a sovereign guarantee of the government.
While company FDs don’t offer this, they do come with some of the highest FD interest rates. So, you can choose the right issuer by reviewing their safety ratings. Assigned by companies like CRISIL, these safety ratings showcase the risk these FDs pose.
With the highest safety ratings, the Bajaj Finance FD, for example, is a highly secure choice. This means that you will be able to get back your initial investment and interest payout in full and on time.
As flexible as your travel plans
The best part about FD is choosing your tenor to match your travel plans. Generally, you can book FDs for as few as 7 days to 5 years or more. With a little planning, you can ensure your FD matures in time to book your tickets, hotel stays or travel packages.
The best way to get the highest FD interest rates is to ensure you book it for a longer duration or a special tenor. Another way to increase your payout is to book a cumulative FD, which gives you the interest payout at maturity or when the tenor ends.
What’s more, you don’t need to save up too much to start an FD. Issuers accept a deposit from Rs.1000 and up. The ideal sum to invest is usually between Rs.5,000 and Rs.15,000 to ensure your savings grow enough to finance your vacation.
Easy Access to Liquidity
While FDs are known to be an investment where your funds are locked in for a specific time, you can access your money if you need to. All you need to do is pay the penalty to withdraw your FD if you need liquidity prematurely.
In the event of an emergency or a crisis when you require immediate funds, you can also take a loan against your FD. Most issuers allow you to get a loan for up to 75% of your FD. This allows your FD to continue earning interest while you get access to finances.
All the benefits work in your favour, giving you a stress-free way to finance your holiday. Get started now by choosing the right issuer to book your FD with along with shortlisting your perfect vacation spot!
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