How to Get Maximum Returns from Fixed Deposits?

With steady returns over a fixed period, Fixed Deposits offer stability with better returns. When you choose Fixed Deposits with higher interest rate, you can boost your returns easily. If you’re looking for ways to maximise your returns with Fixed Deposits, here are a few steps you can undertake:

Plan your investment strategy

Just investing in FD cannot guarantee high returns, which is why you should focus on how to manage your FD. If your FD reaches the maturity date, you can consider re-investing, especially as many financial institutions offer higher FD interest rates on renewing investments.
In case you don’t plan to manage your account and monitor your investment continuously, you can ask your lender to renew your FD upon maturity.

File your returns on time

It is important to file your returns on time, and be aware of the latest changes or modifications in the tax laws for FD returns. You can also avail tax exemptions, if you file your returns with Forms 15H or 15G. If you fall in a low-income bracket, you can also receive tax exemption.

Ladder your FDs for liquidity and tax benefits

Make the best use of your funds by dividing a single corpus over multiple FDs different tenors. This can help you see your fixed deposits as a financial backup, which help you fulfil your financial requirements easily. This also enables you to gain tax benefits, as you have multiple maturity dates.

Choose Cumulative FDs over Non-Cumulative FD

Cumulative FDs enable you to grow your corpus over the tenor, as you get extended benefits of compounding. However, non-cumulative FDs help you gain regular payouts, which is why individuals planning to retire prefer them to cumulative FDs.

These simple steps can go a long way in helping you maximise gains from your FD scheme, to reduce deductions. You can invest in Bajaj Finance Fixed Deposits, for better returns that help you grow your corpus. With these Fixed Deposits, you can choose your tenor, avail periodic payouts and earn more returns when you renew your investment, You can calculate your maturity amount with fd return calculator . Start investing in Bajaj Finance Fixed Deposits with just Rs. 25,000.

Also Read: What is FD