95% of Indian households prefer fixed deposit investments for their stability and high returns. The returns and re-runs from your fixed deposits are pre-decided, which can help you plan your investments better. If you’re saving for a specific financial goal, maximizing the returns of your fixed deposits can be very helpful.
To maximize your fixed deposit earnings, you can follow the steps below:
Select a lender with high rates of return
The first step to increasing returns from your fixed deposits, is to select a credible lender, who offers you a higher interest rate. An interest rate of at least 7% or more is ideal for growing your savings, and ensuring high returns. Consider investing in Bajaj Finance Fixed Deposits to ensure higher returns, with stability.
Pick a company fixed deposit
Financial institutions offer company FDs, which offer higher interest rates and flexible tenors. These company FDs make it possible to earn more, and offer a suite of different benefits.
Some of the best benefits of company fixed deposits are mentioned below.
Make most of your company FDs by choosing the right financier, and opt for the best fixed deposit scheme, as per your financial goals.
Invest in multiple fixed deposits
There are several advantages of investing in multiple fixed deposits:
- Gain from varying rates of interest
- Build a safety net against riskier investments
- Reduce your tax obligations
- Gain higher returns
- Make use of varying maturity period, so you can leverage a lump sum amount of money
You can manage multiple FDs with some useful tips, as given below.
Additional Read: How to increase your retirement savings?
Pick a cumulative fixed deposit
While a non-cumulative FD pays returns on a periodic basis, a cumulative one lets you accumulate interest over the tenor. The sum benefits from compounding of interest and your principal isn’t reset to its original value after a fixed amount of time has passed. As a result, you are able to earn more from the sum that you have invested.
Retirement Plan by Bajaj Finserv
Re-invest your interest income
To make your earnings from fixed deposits grow, it is important that you keep re-investing the sum that you get at maturity. This will allow you to generate a corpus to make an expensive purchase, such as a house or car.
So, if you’re investing in fixed deposits for growing your wealth, understand your lender’s renewal policy to make necessary arrangements. Choose the right financier and increase your gains!
You can plan your deposits in advance using the FD calculator, which helps you ascertain the best way to grow your savings, before you invest.
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