FD Laddering: Fixed deposit is considered to be one of the most popular methods of investment in the country. You get guaranteed returns on FD compared to the interest you get on your savings accounts. Along with this, a good interest rate is also available. One advantage of FD is tax exemption. If you want to make big money from FD then you have to understand FD Laddering Technique.
FD Laddering: Today people have many options in terms of investment. But still there is a large section of people who still believe in fixed deposits . The reason for this is that FD provides guaranteed returns within a fixed period of time. However, one disadvantage of FD is that you cannot break it prematurely. If you get it done before time, you may have to suffer losses. In such a situation, we are telling you about such a technique. Through which you can earn bumper from FD. In this you will not need to break the FD midway.
We are talking about FD Laddering Technique . In FD laddering technique, instead of fixing the amount together, investment is made by making several FDs of different tenures. This means that if you are going to get an FD of Rs 5 lakh, then invest that amount in 5 different FDs. That means he should get 5 FDs of Rs 1 lakh each. In other words, instead of making one long term FD, one should invest in a series of FDs of different time frames. This is called FD laddering .
Big earning from FD laddering
You fixed your FD for 1, 2, 3, 4 and 5 years. In such a situation, your first FD will mature in 1 year. In such a situation, the money you get from this can be spent when needed and will also be saved. Fix it again for 5 years. If you do not need that money at all, then fix the entire amount for the next 5 years. Your second FD will mature in the second year. In this way, the FD will mature one by one every year. Same thing has to be done with all FDs. If necessary, spend it and whatever is left, fix it again for five years. In this way, your money needs will be fulfilled from time to time and you will also get full interest on your FD.
There will be no tension regarding increase or decrease in interest rates
With FD laddering, the investor does not need to guess the best time to book his FD or interest rate fluctuations. With this you will remain tension free. Some FDs can be booked at lower rates. Whereas some are booked at higher rates. Due to this, the possibility of loss to investors is very less.
