Fixed Deposit Rates: If you are planning to get Fixed Deposit i.e. FD, then you should know some things before investing money. If you invest money in the way of smart investors, then you will not only get more interest, but will also get many other benefits.
New Delhi. Due to the features like good interest, low risk of sinking money and getting money back whenever you want, Fixed Deposit is the preferred investment tool of investors. If you invest money in FD in a smart way by understanding the bank rules well, then you will not only get more returns (FD return), but the chance of sinking your money will also be zero. Even if the bank goes bankrupt, you will get your pie-pie back. Some smart investors use these three tricks to enjoy more interest and liquidity than others.
It is not that the bank has given them any separate facility. They have just changed the way of investing in FD. They take proper advantage of the rules made by the Reserve Bank and make risk free investments. If you also adopt these three smart methods while investing your money in FD, then you will also get a lot of benefit.
Do not invest all the money in one FD
You should not invest all your money in a single FD. Divide the amount of money you want to invest in FD. Instead of putting all your money in a fixed deposit of the same duration, divide that money into three parts. Put your money in different fixed deposits.
Get FD done in different banks
There is also a difference in the FD interest rates of banks. Small banks usually pay more interest than big banks. That’s why instead of getting FD in the same bank, you should get FD done in different banks. You can get FD of small amount in small bank. One advantage of having FDs in many banks is that if a bank fails, your entire money does not get lost.
A security guarantee of Rs 5 lakh is available on bank deposits. This guarantee is given by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI. This means that no matter how much money you have deposited in a bank, if the bank fails, you will get only Rs 5 lakh back. If you have accounts in many branches of the same bank and the amount deposited in them is more than five lakhs, even then only five lakh rupees will be returned. That is why you can secure your money by having FDs in different banks.
Pay attention to the duration
You did not invest your money in an FD. FD accounts were also opened in many banks. But if you make a mistake then you will not get full benefit. Especially, of interest and liquidity. That is not diversifying the FD tenure. You should invest your money in FDs of different tenures with different banks. If you invest money in fixed deposits of 1 year, 3 years and 5 years, then you will get more interest and money will also come to you at regular intervals.
There is a difference in the interest rates of FDs of different tenures. By getting FD done in this way, you will get interest on your money in three ways and it will be more than the interest you get from investing in FD for a period. If we have invested money in FDs of multiple tenures, then one or the other FD of ours will continue to mature at short intervals.
Due to this we will not face any shortage of money. Also, if suddenly we need money, we will be able to withdraw from an FD in between. Since our entire fund is invested in different tranches, the loss on premature withdrawal is less.
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