We are living in a period in which the stamina of market-related instruments for investment is on the descent. Consequently, fixed deposits, which were in a lull phase before, are back in the spotlight. This is because fixed deposits offer a steady income tool, and you are guaranteed returns. This switch to FD investments comes in an era of economic slowdown when other instruments are proving unreliable. With the loss of employment and cuts in pay, the world we live in has become more uncertain in more ways than one.

Focus on Fixed Deposits

Fixed deposits are back in focus as markets are facing levels of uncertainty never seen before. Stock indices decline sharply and rise dynamically, and in this unpredictable scenario, investors want stability. The beginning of 2021 saw six mutual funds wind up. This was a top mutual fund company housing these funds, and investors were stunned. As a result, distrust among investors grew and was further enhanced, with most investors losing almost 30% of their capital invested in the markets. Thus, investors saw a need to veer away from any market-related instruments. A greater need to focus on instruments offering assured returns and the aversion to loss has made investors think twice before investing in the asset markets.

A Need to Optimise Returns

With scenarios such as this, investors are relying more and more on FD investments to safeguard their wealth. With this consideration, in case you wish to place your funds in reliable fixed deposits, there are ways to be smart about it and earn as much as you can. The returns you receive on any FD depend on many factors. The selection of the FD issuer is a vital one. You should be prudent to choose an issuer that offers you the right balance in appealing returns and safety. This is the first step to strategically making your returns more attractive.

Strategize Your FD Investments

Here are some tactics to use in your quest to maximize your fund growth in FD investments:

  • Calculate Goals and Returns: Invest wisely by calculating funds that you can invest, your goals and which financial institute will provide you maximum returns. For example, you want monthly income and you have a lump sum 30 lakhs to invest, calculate returns on 30 lakhs fixed deposit interest per month.

  • Distribute Funds - While choosing an appropriate FD issuer, the average rates offered by banks should be your gauge in trying to get the best interest rates. You may discover that certain non-banking finance firms offer more in terms of interest rates, some about 40 base point more.

  • High Ratings of Safety - If you are opting for fixed deposits with any non-banking finance corporation, see that you know what its official safety ratings are.

  • Be Flexible - A prerequisite with investors in these unpredictable times is to plan investments that ensure liquidity is high. Laddering deposits can be a way of achieving this. Start your FDs so that every FD matures at different periods of time. Periodic payouts prevent any need for premature FD withdrawals.

  • Rate Benefits - FD issuers like Bajaj Finance give investors supplementary interest rate advantages. For example, interest rates on regular fixed deposits are 7.10%, but if you apply online, you get this hiked to 7.20%, getting higher returns.

FD Investments With an Edge

Simple ways to maximize your earnings with FD investments can make you wealthier. When you invest in a Bajaj Finance FD at Finserv MARKETS, you get to invest with a company that is reliable and will keep your investments safe.