Smart investing doesn’t always involve choosing the highest interest rates at the moment. Instead, it involves choosing instruments that will give you better ROI throughout your tenor. A fixed deposit is one such instrument that can be leveraged to yield high returns without worrying about losing out on your capital. So, whether you are building your net worth or saving towards specific financial goals, look at the measures you can take to enjoy high and assured returns on FDs.

Consider company fixed deposits with high safety ratings

While company deposits pose a little more of a risk than bank deposits, they also offer higher FD rates. To get the best of both worlds, you can navigate to a secure instrument by reviewing the safety ratings on the deposit. For instance, Bajaj Finance offers Fixed Deposits with the highest safety ratings of ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating. This way you are assured of your returns and can enjoy higher FD rates that stretch up to 8.60% over a tenor of 3 years or more.

Invest in the name of your parents

Senior citizens are offered higher fixed deposit account interest rates on most deposits. For instance, Bajaj Finance offers 0.35% higher interest for senior citizens, allowing for up to 8.95% returns. By investing in your parent’s name you can both save and reduce your TDS obligations.

Ladder your FDs to enjoy renewal perks

While certain lock-in periods seem worth your while as they offer higher interest rates, choose to have continuous liquidity by laddering your FDs. With this, you can enjoy additional interest on renewal of your FDs as they mature and also gain from higher interest rates in case of increased rates. Bajaj Finance offers 0.25% additional interest on the renewal of your fixed deposit. By laddering your FDs, you can avoid prematurely withdrawing it and losing out on your returns or having to pay penalties.

Use the FD calculator to determine the highest ROI options

The FD calculator helps you forecast your returns beforehand. This way you can preview the maturity amount and the returns you have earned before you invest in an FD. By tweaking the inputs, increasing the amount, tenor or choosing a special scheme, you can quickly and accurately calculate the differences. This way you can choose the best FD options and ensure that the investment choices you are making work in tandem with your goals.

For instance, Bajaj Finance offers a special tenor scheme that gives you more ROI than a 12-month FD for a deposit of Rs.1 lakh and a tenor of 15 months. This helps you gain a good sum over a short period of time to finance short-term needs at the earliest and still enjoy high returns.

Employ these tips to ensure you maximise your returns without compromising the safety of your capital or returns.

Published by Mohsin Ahsan