FIXED DEPOSIT

TOP 10 TIPS TO LEVERAGE RISING FIXED DEPOSIT RATES

Published By Moushumi Mahanta | 15 Aug, 2024

Investment Strategy Alignment

Short-term objectives like buying a car may be best suited to low-risk investments such as Fixed Deposits. For long-term goals like retirement, a mix of FDs and higher-risk investments may be more advantageous.
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Regular Rate Check

Regularly monitor FD rates to maximize returns, considering both the headline rate and the entire interest rate structure.
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Additional Benefits

Look out for loyalty rewards, auto-renewal bonuses, or senior citizen perks that can enhance overall returns.
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Hidden Fees

Factor in early withdrawal penalties or fees imposed by certain banks.
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Bank Reputation

Choose a bank with competitive rates and a good credit history to ensure safety and profitability.
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Matching Goals

Align the lock-in period with financial goals. Short-term goals benefit from shorter lock-ins, while longer-term goals may justify longer lock-ins.
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Diversification Strategy

Spread investments across multiple FDs with different maturities to minimize the impact of interest rate fluctuations and maintain liquidity.
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Reinvestment

Reinvest the proceeds from matured FDs at higher rates, potentially increasing total returns.
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Portfolio Rebalancing

Regularly review and rebalance your portfolio to adjust for changing market conditions and ensure alignment with financial objectives and risk tolerance.
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Inflation Protection

Consider investing in assets that can outpace inflation to maintain the purchasing power of your savings and protect your wealth over time.
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