Fixed deposits are one of the best avenues to invest if you have idle funds at your disposal. They let you earn higher returns on investment as compared to savings or current account. However, before you plan to invest in these schemes, you should be aware of how can you maximize your returns on fixed deposits, which is discussed above in the article. The points which you need to consider to maximize your returns are; first, you need to cross-check and compare the rate of interest across NBFCs and financial institutions to get the best deal on your deposits. Secondly, place a deposit in the name of your parents as it would let you earn higher returns of up to 0.50%, which is more than which is offered on the regular FDs to non-senior citizens. So, opening an FD with your parents would be a wiser decision to have additional benefits on your investment. Thirdly, opt for cumulative fixed deposits as compared to non-cumulative fixed deposits to get the benefits of compounding over time. Fourthly, if you want to avoid tax deduction o the interest earned on your investment, do not forget to submit form 15g and 15h when you open an FD account. Lastly, you should invest your funds in a tax saver FD to save yourself from paying taxes. So, these were the essential points which you need to keep in your mind before planning to invest in an FD.
Read More in Detail: 5 tips to the highest return on FD
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