5 Ways To Invest Your Funds Smartly in Fixed Deposit

Invest Your Funds Smartly
fixed deposit

It is prudent to pick instruments that offer flexibility in terms of investment methods and withdrawals options. One such instrument is a fixed deposit as it gives you an opportunity to choose a tenor as per your financial plans and it also provides easy options when it comes to early withdrawals. However, to maximize your interest earnings from a fixed deposit plan, you can adopt these 5 smart ways:

Develop a strong understanding of FDs 

Find scholarly articles written by ace businessmen and financial experts on the internet and read their viewpoints to develop a good understanding of the benefits of fixed deposits. On reading these articles, you will also get an idea about the other types of instruments that you can club with FDs to diversify your portfolio and maximize your returns. 

Do some research first 

Before investing in an FD, you can do some research on the topics such as what are the FD interest rates today, which bank is offering a higher interest rate, etc. 

For instance, the Bajaj Finance FD scheme is one of the better FD schemes today because it offers an FD interest rate as high as 7.25%. Not only that, it is offering 0.10% additional FD rates on using an online FD form to start investing in FDs and a 0.25% extra FD rate is reserved for senior citizens. You will get such useful insights only if you do thorough research on the fixed deposit plans offered by various financiers. 

Confirm the credibility 

To ensure the safety of your invested corpus is vital to cross-check the credibility of financiers. Therefore, apart from finding the financiers who offer a decent interest rate and guarantee other attractive benefits, you must also check the credit ratings that they have received from reputed credit rating agencies like ICRA and CRISIL. 

Bajaj Finance FD scheme has received high credibility ratings from CRISIL and ICRA and over 2 lakh depositors have chosen to deposit in its FD plans. These facts are enough to validate that your deposits are safe in the FD plans of this fixed deposit scheme.

Use an FD calculator 

To compare FD rates across various financiers easily, you can utilize the FD calculators that are available on their official portals. By using an FD interest calculator you will not only get a clear idea of the best interest rates in the market but it will also help you to compare various FD schemes based on their tenor range, minimum and maximum deposit amount, and many such factors. 

Probe into withdrawal rules 

You may have to withdraw your deposits to cover an unprecedented situation or financial crisis. Therefore, you will need to check the withdrawal rules offered by different FD schemes to find the one that suits your requirements. 

For example, the Bajaj Finance FD scheme lets you avail of a loan up to 75% of your FD value. Also, its multi-deposit feature lets you invest in several FDs at once. You can choose to invest in different FD types and the deposit amount and tenors can vary for each deposit. This increases your liquidity options and also provides you with the opportunity of clubbing the interest gains of various deposits to create a new corpus. 

It also means that you don’t have to withdraw your deposits to cover an emergency in the first place and even if you need extra funds to cover the crisis, you don’t have to disturb your entire investment for that sake. 

Investing is Good Choice

Investing in a fixed deposit scheme is a good choice as it is a stable investment avenue. However, you must also invest in an FD smartly to gain maximum benefits from it. For instance, you can choose to read the articles of financial experts to grow your knowledge about FDs and you can also do some research or use an FD calculator to find the best-paying FD schemes in the market.

The highest FD rate is currently offered by the Bajaj Finance FD scheme in the market as it is also a safe option as credit rating agencies have rated it highly for securing the capital of depositors.

Moreover, options like loan against FDs, multi-deposit feature, and higher FD rate provided to individuals above 60 and online investors underline the fact that it is one of the most hassle-free and profitable investment options in 2021.

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