Unravel Your Travel by Fixed Deposit Investment

Unravel Your Travel by Fixed Deposit Investment

It is a fact that no matter what we have, we are never satisfied. The more we get, the more we desire. However, just relying on our monthly salaries is not enough to fulfil all our needs. While we spend most of our times in earning, we somehow neglect the importance of managing our finances and saving for plans. You never know what may happen and when you run out of cash. Such uncertainties lead to a lot of difficulties and render us ineffective to manage the money. Hence it is very important to understand your present needs and future goals. Well, investments can help us manage things and bring us closer to our dreams.

Investment is not a one-day thing. One should develop a habit of investing to get adapted to the nature of an investment. Let us consider a simple thing like travelling.

Travelling is fun only if you have money in your pocket. We have compromised on so many trips to beautiful places because of the financial barrier. While we are living to earn, when will we earn to live?

Well, if you have ever made plans to travel, you might have thought about minimising expenses as far as possible. Some of the smart ways to finance your travel are:

  • Take a loan ( personal loan for travel)
  • Use a credit card
  • Loan against mutual funds or stocks
  • Open a Fixed Deposit (FD)

Let us see which option stands out as the best. Taking a loan is advisable only when you are really in need of money. The loan amount can finance your travel, but what about the EMIs. Moreover, a personal loan is an unsecured loan with a very high-interest rate as compared to other secured loans. You can manage your travel finances easily. However, there will always be a burden to return the amount you borrowed. If you think of using your credit card, think of that credit limit. You can use a credit card for certain expenses related to your travel, but that will ultimately reduce your credit limit and increase the debt. A loan against mutual funds can be availed only if you have sufficient investments to be used as collateral. Last but not the least, opening a FD is a form of investment. While this will not provide you immediate returns, it can save you from debts related to personal loans and credit cards. Let us see how.

Travelling and Fixed Deposit Investment:

It is true that we cannot predict what may happen, but we can surely start preparing. Investing can avoid all uncertainties while providing a financial relief. However, it needs planning and a comparison between different options. While Investing in PPF, mutual funds, equity shares can give high returns; these are relatively risky. So, why not opt for FD investment to finance a planned or emergency trip?

Here is what an FD can do for you:

  • High-interest rates: Investing in FD grants high-interest rates and increases the interest amount you earn on the deposit. Use an FD calculator on NBFC websites like Bajaj Finance to understand the impact of high-interest rates on the amount you will avail at the end of the tenure and plan how much to invest for your goals.
  • Premature withdrawal: In case of any emergency, you can withdraw the deposited amount.
  • Loan provision: This is one of the best features of an FD. In case you need some money for a particular purpose, you can avail loan on the deposited amount. As you have already invested some money, you can easily pay off the loan amount.

So stop cancelling, start planning and don’t let finances bother your dreams.