A fixed deposit can help you maximise your savings and create wealth for your future. But, when you have an ongoing FD, and the maturity date is near, you may be considering whether to renew your FD or not. So, before you renew your FDs, read along to know more about factors you need to consider.
What is the interest rate that you will get on renewal?
Most FD issuers offer a higher interest rate on renewing your FD. It is hence, better to check if you can get a better interest rate with your existing FD provider before you consider renewing your FD. If you aren’t getting a good interest rate, you may want to let your FD mature and use the funds to invest in another FD, so you can grow your savings more.
You can get a high-interest rate on your Bajaj Finance Fixed Deposit and benefit from the high safety and stability of your investment amount.
A high interest rate will help you outrun the inflation rate, while you can look for the high safety of your investment. You can also use the fixed deposit calculator to determine your returns before you start investing, so you can plan your investments better.
Factor in the current market trends
Market conditions change from time to time, and these factors impact your FD interest rate and your investments in general. For example, when the economy is going through a recession, it is best to renew your fixed deposit instead of withdrawing it post maturity.
This is because the market is likely to be extremely volatile, which increases your investment's risk. Therefore, in such a situation, continuing your fixed deposit will offer you the best returns.
A one-size-fits-all approach won’t work here, so study the condition of the market before deciding. If the market is volatile, you may want to consider investing in safe investment avenues, which help combat uncertainty in terms of returns.
Evaluate your investment portfolio
When your FD is nearing maturity, take some time to revisit your investment portfolio. First, examine your risk appetite and financial priorities. For example, if your goal is to benefit from higher gains offered by instruments traded on the market to grow your retirement corpus, renewing FDs might not be a priority for you now. However, if you are nearing retirement, you may want to choose low-risk investment options to plan for post-retirement life. Here, renewing your FD may be more beneficial.
Consider your immediate requirements
Another way to evaluate renewal is to consider your immediate finance needs. For example, if you must pay for a wedding in the family or repay a debt, withdrawing your FD when it matures and using the funds towards this will serve as a wise move. However, if you have no pressing need for funds and have stable cash reserves to take care of any financial obligations that may crop up, you could renew your FD.
Carefully examine these factors and only then decide to renew your FD or not. If you renew your fixed deposit, choose a provider that offers flexibility and superior benefits, such as Bajaj Finance.
Make a smart investment choice by investing in Bajaj Finance Fixed Deposit, and reap the benefits of attractive interest rates upon renewing your investment.
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