How to Plan Your Vacation with Your FD Returns

Travelling to your dream destination can be a costly affair. But with proper financial planning, you can enjoy a vacation with your family/friends without any monetary stress. If you are a travel enthusiast, it is essential to save for this important goal and one of the best ways to do this can be via a Fixed Deposit investment.

Fixed Deposit (FD) has been a time-tested savings and investment tool helping people realise their financial goals. Then why not travel? Let's look at 5 reasons that make FDs the right choice to save for your vacation.

1. High Interest Rates on FD

Fixed Deposit interest rates are higher than Savings Account interest rate, making them a better choice to park your funds for a goal such as travelling. Moreover, if you opt for cumulative Fixed Deposit, you get compounded investment returns. At AU Small Finance Bank, you can earn higher interest rates, depending upon the deposited amount and tenure.

2. Get Assured Returns

Fixed Deposit earnings are guaranteed. You know exactly how much you'll get after the end of the term. This is because the interest rate remains fixed for the entire duration of the deposit. Fixed returns can help you plan better for your financial goals, such as travelling.

3. Various Tenure Options

From 7 days to 10 years, you can choose the tenure based on your travelling goals. Here, it's important to note that a higher tenure can give you better FD interest rates. For instance, if you are investing in an FD account with AU Small Finance Bank for a period of 60 months to 120 months, you can earn higher interest rates.

4. Low Investment

With an investment of INR 1,000, you can open an FD account & begin your journey toward your dream vacation.

5. Instant Access to the Invested Amount

Unless you are very sure about the exact travel dates (which could be a couple of years from now), you'll not be sure when you need access to the funds. Moreover, you may not need all the funds at once. For instance, you may need money to book tickets, make hotel reservations, and book activities. With Fixed Deposits, you can have instant access to the funds accumulated. Some of the benefits you can avail with us are as follows:

• High FD interest rates
• Get an Overdraft Loan facility against your FD ( Not given under tax saving FD)
• With a 5-year Tax Savings FD, you can save up to INR 1.50 lakh taxes in a year
• Easy premature/partial withdrawal in case of an emergency
• Senior Citizens can get higher interest rates (up to 0.5% higher than regular FD rates)
• Book an FD account online
• Monthly, Quarterly or Annual Interest Payouts

You can easily open a Fixed Deposit with AU Small Finance Bank through our AU Video Banking or AU 0101 App. Alternatively, you can visit the nearest AU Small Finance Bank branch. If you already have a Savings Account with us, you can easily open a new FD through AU 0101 App/NetBanking.  

Read More: How do 5-year Fixed Deposits Work?

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