Nowadays everyone wants to save some part of their earnings. However, people always choose the safe option while investing. This is the reason why most people prefer to invest in FDs. If you also invest in FD, then learn some easy tips to get maximum returns in this article.
How to get more returns in FD
- Finance expert Bhanu Pathak explains, "FD laddering is one of the best strategies as one can maximize their returns with the help of this concept."
- You can see FD laddering by dividing your amount into several parts while investing. By doing this, when you re-invest the amount in FD after 5 years, you will get more interest. On the other hand, if you do 10 years of FD together, then the returns are less.
- The interest rate offered by banks varies for different tenures. Usually, the best returns of fixed deposits are available over 3-5 years.
Compare interest rates
If you are investing in FD, then keep in mind that maximum interest is being given by any bank or post office. Many times we get FDs done in banks with low interest, due to which our maturity amount gets reduced.
Reinvest the maturity amount
Many times when our FD matures, we keep the money at home. It is wrong to do so. The right way is that if you do not want to use the amount for any purpose, then invest it again.
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