If you are planning to invest in fixed deposits choose a different tenor for each deposit. This is called laddering deposits that makes your investment more liquid and also gives you a chance of reinvesting returns at a higher rate when the FD interest rate increases.
Bajaj Finance FD is offering high interest rates of up to 7.05%. Along with the highest FD rates , you also get the option of investing in multiple FDs with a single cheque. The tenor for each deposit along with the amount and FD type can vary as per your financial requirements. Laddering FDs becomes much easier due to this facility. You should only rely on the instruments offered by reliable companies and banks. Checking the credit ratings is an important barometer when it comes to validating the trustworthiness of a financial institution. Similarly, some investments are riskier than others. You May Also Like: IMPORTANT TIPS TO INVEST MONEY FOR THE FIRST TIME
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To amplify investment returns, you need to develop a thorough understanding of what is investment and the tax policies that are associated with it. To earn higher returns, you might think of investing in stocks or other market-linked instruments. However, the current volatile market scenario also necessitates the need of investing in stable investment options like fixed deposits.
For multiplying your returns smoothly, you must reinvest the FD returns in a cumulative FD. The cumulative FD generates higher returns by adding the interest proceeds of every interest calculation cycle to the principal. The added interest compounds during the next cycle and eventually creates a big difference in your interest earnings. Investing in multiple FDs can also help you to maximise your investment returns. It has been noted that historically, the FD rates increase with the increase in inflation rate. Therefore, the FD rates at which you have locked-in your savings might not be able to beat the inflation in the longer term. Read: What is Investment and how to Amplify Your Investment Returns? Senior citizens can avail TDS exemption according to the Section 194A if their net interest income is up to Rs. 50,000. However, if you are younger than 60, you can avail TDS exemption only if your yearly interest income is up to Rs. 40,000. It is quite clear that the interest rate determines the interest earnings. Therefore, it is natural for you to search for an FD scheme that offers a high interest rate. Bajaj Finance FD is providing a fixed deposit interest of up to 6.80% which is the highest in the market right now. If you are older than 60, the interest rate goes up to 7.05% as a 0.25% higher FD rate is guaranteed to senior citizens. The easy online investment method and flexible tenor spanning from 12 to 60 months make the investment process seamless. Also, as the documentation and even deposit payment can be done online, there is no need to visit any branch office of Bajaj Finance for investing in FDs. Also Read: How to Calculate TDs on Fixed Deposit Easily? Before the introduction of CKYC (Centralised Know Your Customer) in the market, financial institutions like banks, NBFCs, mutual fund houses, etc. conducted the KYC process separately to verify their customers.
However, you no longer have to go through this ordeal as CKYC has changed everything. As per the CKYC procedure, you need to register your documents in a centralised repository after which you will get a CKYC number. Now, every time a financial institution needs to verify your identity or address. You can share the CKYC number. It saves the hassles of submitting a fresh set of documents every time. Also, it makes the whole process much convenient and quicker for both the service provider and customer. Also Read: How CKYC Makes your Investment Process Easier |
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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