Bankfixeddeposits Vs. Companyfixeddeposits
Fixed deposit schemes offered by banks might not be the best offer available in the market. It is advisable to look for options beyond the schemes offered by public and private banks. There are a handful of company fixed deposit schemes which offer significantly higher rates of interest.Looking for and comparing these options before settling down for a term deposit scheme is likely to help to gain more out of your investment and make the most out of the term deposit scheme.
Try out cumulativefixed deposit schemes
The basic difference between a cumulative FD and a non-cumulative FD is the method of payout. While the non-cumulative term deposit schemes offerinterest payouts on amonthly, quarterly,bi-annual, or annual basis, the cumulative term deposit schemes offerthe payout at the end of the investment tenure. The latter option will help you generatemore interest as the same will be calculated as compound interest. However, if you are someone who is looking out for a periodic payout scheme, the non-cumulativewill be your go-to option. However, if wealth generation is your primary motive, a cumulative term deposit scheme will be the best bet for you.
Go for short-term FDs to tackle inflation
In general, it has beenwitnessedthatthe interest rates for fixed deposit schemes risewith inflation. Thus, it issuggestedtoinvest in a short-term fixed deposit scheme which will help you tackle inflation. This method of investment will help youmaximiseyour returns from your fixed deposit schemes.
Invest in multiple FD schemes
Multiple investments across different fixed deposit schemes helps in gaining better liquidity. It will also offer you with consistent returns.Consider breaking down your entire investment into fractions and consider investing them in different schemes for varied investment tenures. This will help you build and ladder of investments. In turn, these will help you make the most out of your invested amount.
The returns you will earn will depend on the tenure for which the interest rate is offered by the bank. Different banks offer different interest rates depending on the tenure. Hence, you can expect decent returns on investing Rs.50,000 in an FD scheme for a long-term.
If you invest in multiple FD schemes for different tenures keeping in mind both your short-term and long-term goals then you will be able to get returns which will help you meet your financial needs both for short-term and long-term. You can consider investing in multiple FD schemes.
Yes, you must compare FD interest rates offered by different banks before investing so that you can invest in schemes promising maximum returns.
You can invest a certain amount every month in your FD which on maturity will be credited back to your bank account.
Once you receive the maturity amount, you can either use it to meet your immediate financial requirements or choose to reinvest in an investment tool of your choice. You can choose to reinvest the maturity amount in FD again.
Both are good investment options and promises decent returns except in RD you invest a certain amount every month and in FD you generally have to invest a lump-sum amount. Based on your needs you can choose either FD or RD.
FD is considered to be a safe investment tool as it promises safe, decent, and assured returns while stocks can be risky despite promising high returns. However, both are brilliant investment tools and you must diversify and invest some portion in FD and some in stocks.
Yes, the interest that you receive on your invested amount is considered income generated from other sources and hence taxable.
