Various lucrative schemes like EMI and credit card systems have trapped the people to buy more and expensive gadgets and ruin their personal finances. Attracted by the idea of purchasing fancy things, people without any second thoughts buy cars, house or many other expensive things on loan, Credit Cards or EMI and are then paying for the same object life-long.
More people are living paycheque to paycheque life, which may seem absolutely fine at present but have very critical consequences in the long run. Moreover, it becomes important for everyone to understand the need for proper finance management so that how they can save more for their future and even earn on their investments.
It can be observed that the current interest rates on various investment schemes are high. People can make use of these increased interest rates and make more money.
There are plenty of investment schemes available in the market, which carry different procedures and varying returns. For someone who doesn’t want to take too much risk for their money, can opt for Fixed Deposit Schemes.
Fixed Deposits are one of the most favorable investment plans in India and in many other countries. Along with the security on the principal amount Fixed Deposits also offer assured and secure return on the investment. People who want to earn more on their investment and have sufficient knowledge about market fluctuations can also opt for debt fund-based investment options like Equity Shares, Bonds, etc. while these schemes offer higher returns the returns are not always assured and uniform and also carry the risk for the principal capital.
Higher risk is one of the prominent factors why people prefer Fixed Deposits over other investment instruments. However different banks and NBFCs offer a variety of Fixed Deposit schemes and interest rates provided on them also vary. Here are some points you can consider to make more earnings on your FDs and flourish financially.
- Consider your requirements and financial goals
Before making investments in any schemes, it is important that investors define specific financial goals and keep in mind their requirements. The need for an investment plan vary from person to person. Before locking the money, keep in mind the amount available on hand, estimated time for which you can save the money and so on.
This can help one to choose the most suitable plan for investment, saving them from the consequences of investing in a wrong or unsuitable investment scheme.
- Do proper research
An investor will always make sure that the organisation where he is investing the money is secure and reliable. Before opting for any investment plan check the credibility and past records of the bank or organisation where you are investing money. Go for a lender that offers high FD interest rates and is more credible. You can also opt for various companies like Bajaj Finance that offer higher interest rates and secure investment options. An investor can also make use of online FD calculators that can help them to calculate the amount investors will receive at the end of the maturity period, as well as interest on the principal amount and the premium.
- Diversify your money
Diversification means instead of investing the entire sum in the same scheme, invest in multiple FDs. Diversification has proven to be more beneficial for the investors.
Diversification may help to gain more interest and fewer tax obligations. It also helps the investor to build a safety net against the investments that may involve risk. Varying maturity period can also help the investor to leverage on the lump sum.
- Opt for a cumulative FD scheme
Cumulative Fixed Deposits schemes are the offers where the interest earned on the principal amount is reinvested, and the investor receives the total amount by the end of the maturity period. Non-cumulative FDs are the FDs where interest earned is paid out to the customer on a monthly basis.
Whereby the end of tenor the investor will only receive the principal amount invested. Hence it is suggested to opt for a cumulative FD to enjoy higher returns.
Choosing the right investment plans and making the right decisions is important to make sure the capital invested is secure while you are earning for the same. Keep in mind the points mentioned above to gain maximum benefits on your FD and raise your wealth.