Want to invest in fixed deposits that provide high interest? Read the following tips in this Indian Money review to know more how you can do so.
7 Tips On How To Invest In High Interest Fixed Deposits
According to Indian Money company reviews, as a consumer you must carefully compare and evaluate the rate of interest offered by different banks. Consider all the options available in the market and find out which bank pays good interest and other suitable terms and conditions that would meet your requirements.
Split your money
In case you have surplus money which is above Rs 1 Lakh, then you must utilize this money to invest in more than one FD. As per IndianMoney.com Review, it is always advantageous to split your money and invest in two or more FDs with different tenure, rather than inventing the entire sum in a single fixed deposit. This will help you withdraw one of the FDs, in case of an emergency, instead of breaking the entire deposit.
Maintaining separate FDs across maturities helps you get money at different points in time, to manage small expenses or big ticket purchases. Spreading your investment across several banks controls the penalties incurred in case of premature withdrawal.
Opt for multiple FD accounts-with different tenures
The interest the bank pays on your fixed deposit varies according to size and tenure of the deposit. You must be familiar that interest on fixed deposits fluctuates from time to time and to maximize returns, you can opt for FDs across maturity periods.
According to IndianMoney CEO C. S. Sudheer review, invest in an FD where the maturity period is a year and in another FD, with long term maturity of three to five years. You can reinvest your FD after maturity, as the interest rate changes over the period.