<div>8 Ways to make most of your Fixed Deposits</div>
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8 Ways to make most of your Fixed Deposits

  • Highlights

  • Fixed interest rates are best for risk-averse investors

  • FDs offer higher interest rates & flexible tenor

  • Shorter FD tenor helps in beating inflation




Having a robust investment portfolio is important at any age, be it for an overall goal of achieving financial stability or to fulfil dreams such as buying a home. Savings also become your rescuers in times of need—like when you experience health issues, lose your job, have a debt to pay off, etc.

Thus, savings play a vital role in your life, and a significant method of saving is through fixed deposits. Fixed deposits are one of the most secure investment options available today. You can make most of your earnings via fixed deposits, by following the steps below:

1. Opt for company FDs:

The interest rates of company FDs are stable along with flexible tenor, which is why most investors choose them over bank FDs.

2. Look for stable interest rates:

FDs come with different schemes of interest rates. There is a higher rate of interest for senior citizens, which helps them earn better returns. Various company group employees and existing loan customers also enjoy higher FD interest rates.

Also, when you renew your FDs, you get a better interest rate, which helps you benefit more. Look out for such opportunities and make the most of higher returns.

Fixed deposits by Bajaj Finance offer the best features with easy online application process, a handy fixed deposit calculator, and 200+ branches across India.

3. Choose cumulative FDs:

It is advisable to choose cumulative FDs over non-cumulative FDs. Cumulative FDs let you earn more due to compounding interest over your chosen tenor. This means that your annual interest is reinvested and you earn money on it which is then paid out to you at your FD’s maturity. When you choose non-cumulative FDs, which offers you interest pay-outs at regular intervals, you still get an interest but lose out on compounding its value.

4. Avoid untimely withdrawals:

When you withdraw your FD investment before the end of the tenor period or before it reaches maturity, you may have to pay a penalty or lose out on your interest earnings. So, before you invest your money for a longer tenor such as 60 months, consider whether you will need to withdraw it early. If yes, opt for a shorter tenor to ensure you don’t pay an early withdrawal penalty.

5. Decide your tenor carefully:

When you invest in an FD, keep a watch on tenor since your FD will only earn you money when its interest rates are higher than the rate of inflation. So ensure that you are not locking in your investment in a fixed deposit for too long. It is better to keep a short tenor to beat inflation, ranging from 12 months to 60 months.

When you create your investment portfolio that consists of your financial assets such as stocks, mutual funds, etc., make sure it groups your FD accounts too. Here are 3 major advantages of fixed deposits:

Difference between Cumulative and Non Cumulative

6. Assured returns:

Unlike other investment schemes, fixed deposits offer you an assured return, regardless of market fluctuations.

7. Easy withdrawal:

Fixed deposits are easy to withdraw when you need money for any conceivable urgency. However, untimely withdrawal of FDs will lead to a penalty.

8. Greater flexibility:

It gives you the power to choose the tenor according to your need and requirements. You can also close your previous account and start with a new one or open multiple accounts.

Additional Read : Where to invest for higher returns on your fixed deposit?

Fixed deposits offer fixed interest rates, and are a must-have, regardless of your risk appetite. Follow these simple steps to earn more from your fixed deposits.


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