The fixed deposit ensures that you have a steady return out of the sum you have invested. Before investing in a fixed deposit, you must be aware of the interest rates. They usually remain constant and thus, you can evaluate the amount of money you will receive once the tenure is over.
With PNB Housing Fixed Deposit, you can get complete details into your eligibility requirements, types as well as higher FD interest rates applicable to your deposits. So, let’s get you started on a few tips you must look out for to ensure maximum returns.
Top Tips to Ensure Guaranteed Returns
Here is your complete guide on earning the maximum returns from your savings by investing in fixed deposits.
- Evaluate the Rates of Interest Various Financial Institutions are Offering
Since there are a lot of financial institutions offering fixed deposit schemes, you must do a thorough evaluation of all the available fixed deposit options. Your purpose should be to find out the company that ensures you the highest rate of return.
- Earn More by Choosing Cumulative Schemes
If you need payments regularly, you can go for investing in non-cumulative schemes. However, investing in cumulative schemes increases your wealth and ensures you get increased returns.
- Overcome the Inflation Gap
There is a direct relationship between the rates of return and inflation. This means a rise in inflation will lead to a rise in the rates. One way to overcome this inflation gap is by putting your money in short-term fixed deposits.
- Invest in Multiple Schemes to Improve Liquidity
If you invest your money in not just one scheme but various other fixed deposits tenures, you can get liquidity and higher returns. You have to focus on installing a staircase consisting of other fixed deposits to get the most out of your investment. This method will help you balance the difference in the rates over time. Add to it; you will get the returns from one deposit regularly.
- Always go for Investing your Money in Company Fixed Deposits
It is highly recommended to go for company FDs when compared to other financial institutions. This is because the companies provide you with increased rates of interest. One more reason is that you have plenty of schemes when you invest in a company fixed deposit.
- Avail Tax Exemptions by Filing Returns
You must keep in mind the recent changes in the tax rates regarding your fixed deposits. You must always keep in mind form 15G or 15H. By submitting these, you can avoid tax deductions.
- Open Fixed Deposits in the Name of Your Parents
Senior citizens (your parents) are eligible for higher rates of returns comparatively. Hence, it is always advisable to invest in fixed deposits using their name.
Fixed deposits are your safest option for maximizing your wealth and earning profits. One of the key reasons is that there are no market interventions; hence your investment is secure. Moreover, you can easily open a fixed deposit account online or just by visiting a nearby branch and making the most of your investment corpus.