The security and guarantee provided by Fixed Deposit (FD) are what that made the investment option top the preference list of investors. A few benefits of investing in fixed deposits include flexible tenor ranging from 12 months to 60 months, flexibility in choosing the type of FD, and the option to select the interest payout frequency. Unlike other secure financial investments, you can open more than one FD accounts at the same time.
Additionally, you can reinvest your interest received to increase the base amount and earn higher FD interest rates. Having multiple FD accounts can help you gain higher returns as well as aid you in maintaining liquidity from your investments. However, it could be a baffling task to manage multiple accounts at the same time. Following are the 5 ways to guide you in managing
The procedure of opening
Maintain a Deposit Hierarchy
Once you decide to ladder your FD investments, you need to build a deposit hierarchy by prioritizing your investment tenors. This means that you should systematically break your principal investment sum by keeping in mind your financial goals and requirements. By doing so, you can eliminate the risks of premature withdrawal and keep a financial backup for emergencies.
Loan Against FD
In case you need money in case of emergencies, and you do not wish to break an FD and pay penalties for the same, many major financial providers offer the facility to take a loan against FD. You can use up to 90% of the accrued sum with lower interest rates than that offered by the conventional loans. Also, you can pay the loan amount in a flexible tenor of your choice as per the terms and conditions of the financier you choose.
Adopt Online FD Management
When you invest in prominent financial providers like Bajaj Finance, you can avail the facility of online application and management procedure with minimal documentation requirement. You can purchase, monitor, and renew your FD easily through the online portal provided by the financier.
Consider FD Renewal
If you do not require the money at the time of maturity, you can consider renewing them online. When you renew your FD, the base amount increases every time due to the interest added to the principal amount. This can attract higher FD interest rates with each FD renewal providing you with higher returns from your investments.
Although there are many benefits of opening multiple FDs at the same time, you should take note of not opening more than 7-8 FDs at a time. This can help you manage your FDs efficiently. Also, make sure to split the principal amount in multiple FDs in a way that each FD should have a decent investment to gain good returns.
You need to optimize your FDs for your profitability and calculate the returns using the online FD calculator. With Bajaj Finance, you can earn higher fixed deposits interest rates ranging from 8.75% to 9.10% based on your eligibility with a minimum deposit of just Rs. 25000.
You can choose the tenor of your FD from 12 months to 60 months as well as select the type of FD and the frequency of interest payout. Manage your
fixed deposits without any hassle with the online FD portal of Bajaj Finance!