Financial experts always suggest to not keep our parked money idle, rather use it smartly to generate more money. Investing your parked money in the right avenue is one of the smart decisions that one can make. But unfortunately, not everyone is aware of the importance of investments or just ignore it for so long. Planning for the future and being financially secure is really helpful in the grey days of life. In Indian markets, Fixed deposits are one of the most preferred modes of investments. As compared to other investment schemes Fixed Deposits are not only secure but they also offer higher returns. This is the sole reason why FD is more favourite amongst the senior citizens in India. People often prefer investing with NBFCs or Banks that offer higher rates of interest on FD. Reportedly Bajaj Finance Fixed Deposit (FD) Scheme offers the highest rate of interest up to 8.95%. These are just the primary features of fixed deposits, but what if we told you that you can also earn more on your FDs. Read on to find more about how you can gain higher returns.
Make specific investment goals
Often people ignore the importance of investment and end up making a lot of mistakes. Small mistakes in investment sometimes lead to huge losses. Hence it is suggested to start your investment plans as soon as you can and have specific goals. So that you can save yourself from future losses.
Plan investment strategy
Once you are clear about your destination, you make wise decisions that can help reach your destinations earlier. Similarly, once you have made clear investment goals you can map out an investment plan that better suits your financial situations. One thing here investor needs to make sure is to be careful and thoughtful while mapping out the plan. One can automate various payments and FD renewal so that you don’t have to worry about penalty fees.
Choose a scheme wisely
Once you have your investment strategy prepared, the next ant thing you need to do is carry out proper research. Study carefully about all the fixed deposits schemes in your market, the benefits of their features etc. And pick the one which suits your requirements the best. This is where having specific goals and strategy are helpful. When you are clear about your investment goals and specific about the amount that you need to invest for the said time. You make a wiser decision.
Invest with a company that provides a higher interest rate
Research about the companies and what interest they have to offer. Make sure to check their ratings given by CRISIL and ICRA. CRISIL and ICRA are one of the most trusted rating agencies of India, and they have been giving fair ratings to the companies after overall analysis. Good credit ratings reflect that the company is stable and that invested money will be safe for the time being. Bajaj finance is amongst the top institutes that offer higher interest rates on fixed deposit schemes. They offer interest rates up to 8.95% per cent and also have stable CRISIL and ICRA ratings.
File your returns timely
Maintaining a good credit score is important as it reflects a strong background. And so, it is important that you timely file your returns.
Keep a track of the updates
Be aware about the latest changes or modifications in regulations and laws. This is applicable for your FD investments as well. In order to enjoy maximum returns be aware of the latest regulations and modifications in the laws, so that you know when and how to gain maximum benefits.
opt for laddering
Rather than investing a lump amount in a single FD scheme, it is advisable to ladder your amount. By laddering, we mean the division of the lump sum into small chunks and investing them differently for different maturity period. The biggest benefit of laddering is, in the time of emergency you can easily withdraw the required amount. Without having to pay a higher penalty and breaking the FD.
Choose Cumulative Fixed Deposits
Fixed Deposits are of two types. Cumulative and Non-cumulative. Cumulative Fixed Deposits are the FDs where the gain on the interest is reinvested with the principal amount and the lump sum is paid to the investor at the end of maturity period. While in non-cumulative FDs, interest is paid out to the customer monthly, quarterly or annually. Whichever is convenient to them. No one can predict what the future has in its store. But we can always be prepared to face it. Choosing the right investment options and by making the right decisions we cannot just securely invest the money, but also earn more on it. And this habit of investing from a very early stage can be really helpful later in your life. These are a few of the things one can keep in mind, which will help them, in the long run, to earn higher on their investments in fixed deposits.
