Most of the people invest their money in FD account in the bank. The biggest reason behind this is the lack of risk and decent returns. Keeping this in mind, banks have started FD schemes for 15 days to 10 years. in which you can invest money. But before that you should keep in mind 5 important things. So that you get a good return on bank FD, as well as if the FD is broken if needed, then there is less loss.
FD Laddering Option – FD laddering is a great option for investing in fixed deposits. In this, you do not invest the entire capital in FD for a single period, but invest it in several FDs little by little. For example, if you have to make an FD of 10 lakh rupees, then instead of investing this whole money in an FD for 1 year or 5 years, divide it into some parts and then one part for one year, the other part for two years and The third part can be invested in FDs of different tenors for 5 years or so on. By making FD in different banks, you will also get an insurance benefit of Rs 5-5 lakh from each bank.
Will get low return on FD – If you fall in the 30 percent slab of income tax, then most of the interest earned on FD will be deducted in tax. Let us tell you that most of the banks are giving interest on FD at the rate of 6.5 percent. In such a situation, let us tell you that FD is a way to keep your money safe and not a means of better returns.
Special deposit Many banks launch FD schemes for 444 days or 650 days or 888 days. In these schemes, high rate of interest is given by the banks. In such a situation, you can invest your money at high interest by choosing these schemes.
Sweep-in FD – FDs come with a lock-in period and in times of need, you have to prematurely break the deposit to get cash. Instead, invest in sweep-in FD schemes in banks where the liquidity is maintained and at the same time you can continue to enjoy the FD rates.
Make FD in Small Finance Bank – Small finance banks offer higher interest rates on FDs than major banks. Let us tell you that even in small finance banks, you get insurance of up to Rs 5 lakh on your deposits.