5 Steps to Improve Returns from Fixed Deposits
We invest our hard-earned money in order to reap the amount of benefit that we hope for. In fact a lot of people do invest a portion of their savings to yield as much benefits as possible. If you too are thinking about investing your money, then there is one thing that you should always keep in mind – invest it carefully and make an informed decision, always! Take note of the various benefits of Fixed Deposit.
For starters, a lot of people tend to invest in various fixed deposit schemes either with banks or companies and firms, depending on the FD interest rates that they offer. Fixed deposits are one of the most time-tested methods of investment which help you to generate as much benefit as you want, but you need to get the proper calculation done and pick the right choices when investing. Get help from a reliable Fixed Deposit calculator to understand the extent of your investment credibility. Well if you are wondering how to maximize your returns from the fixed deposits, then here are 5 full proof pointers that will certainly help you along the way:
- Cumulative or Non-Cumulative, that is the question: Well, whether or not you will be investing in a cumulative or non-cumulative deposit depends on how you want to have access to your interest money. A cumulative deposit will in the long run provide you with a better yield, but if you do require money on a regular basis, that is the interest money on a regular basis, you should go for a non-cumulative deposit. If not, then it is always best to opt for a cumulative deposit.
- Invest for the right term period: It is very important that you choose the term of deposit very carefully. If you want you can use a fixed deposit calculator and then use it to find out which term will provide you with the maximum interest at the end of the period and then opt for it accordingly. Keep a tab on the interest rate that they are offering as well.
- Give it your partner or spouse: If you are legally married, then you can always invest in your spouse’s name, provided your spouse does not earn a taxable income. If you are under a company’s payroll and if you do pay taxes and then for effective tax management and reduction, this is one of the best ways to ensure that you reap maximum benefit and save as much as possible of your hard-earned money.
- Go for interest rates of quarterly compounds: You will reap the maximum benefits of fixed deposit if you invest carefully in schemes that offer you interest rates of quarterly compounds. Make sure that you know every nook and crevice of the scheme clauses before you invest.
- 15G is the key: If you want to save your TDS, when you do not have a taxable income, you need to fill up and submit the 15G form. You need to let the bank know that you are investing, and that you do not fall under the taxable income bracket. This will also help you to save the TDS money.
Thus, if you are thinking about yielding the maximum from your fixed deposit investments, you can always fall back on these five golden rules of FD investment.