Wanted to invest your money in a bank FD? Hold on! Banks have revised their rate of interest offerings for short-term investments such as fixed deposits because of the funds’ liquidity in such products.
A short-term investment that was to fetch an investor with an interest rate as high as 7.5-8% in most of the financial institutions will provide only around 6% for a lock-in period of 3 years for deposits up to Rs.1 crore and less.
Yes, the revision in the FD interest rates is not good news! However, that does not mean that you keep off your plan to invest in an FD. Why? You can still maximize your FD returns despite the falling interest rates when you opt to open an FD with leading non-banking finance companies (NBFCs).
Let’s provide you three ways you can still maximize your fixed deposit interest rate returns.
- Tenor holds the key
Banks may have reduced their offering of an FD interest rate for short-term investments, but investors are yet to ascertain that the interest rates have also gone up for long-term investments. Yes, if you are going to lock-in your investments for a longer period than you can avail higher returns. Like this, you can still maximize your FD investments while not being concerned with market risks with a longer tenor. So, invest for a longer period, sit back and let your money bring you back additional income over an extended period.
- Opt for a maturity basket that works great for you
Are you a young investor who does not have much saving and just can’t afford to lock-in a large amount of money for a longer period because of not having a regular income source? You can then go for what your priority is – a larger income based interest rate or accessing the income for 6 months – 1 year.
So, opting for a maturity basket is crucial than zeroing in on making an unwise decision in haste to avail a higher FD interest rate. Under such a situation, a bank may not be an advisable service provider to go. You need to avail the services of a company which is not governed by these interest rates fluctuations and still provide you with 8% returns on smaller tenors and maturity period. You can go for a non-banking finance company (NBFC) to avail the same and not be affected by the falling FD interest rates.
- Look for alternative investments
While major banks have already reduced their interest offerings, you can still look for other investment alternatives and make the most of your money to make it grow.
Yes, you need to avail the services of a top non-banking finance company (NBFC) and still be in the race to grab a better investment deal when it comes to returns.
With a leading NBFC, you can avail some of the amazing features of a fixed deposit such as:
- Avail a higher fixed deposit interest rate – 7.85-8.10%
- Flexible tenor – 12 to 60 months
- High stability and credibility
- Start your FD investment with only Rs.25,000
- Avail a loan against your FD while keeping your fixed deposit amount as the collateral
- Online account management – lets you keep a smooth track of your FD account on the go
The Bottom Line
Don’t let the falling fixed deposit interest rates bother your investment plans. Go for a noted non-banking finance company and see your money pay it back with some amazing higher interest ranges.