How To Plan Fixed Income Strategy As FD Rates Are On The Rise?

fixed deposit

The fixed deposit account adds versatility to the investment portfolio and can produce a fixed income source for the investor. If you are looking for the best FD rates, selecting longer investment tenure will help. It will help you to produce a steady income source. In such instances, the investor should opt for a non-cumulative payout that will keep producing a constant income for the entire investment tenure.

The investor can even consider re-investing the non-cumulative return into other investment tools that promise higher returns. The Fixed Deposit Calculator online helps the investor to calculate the amount receivable at the end of the investment tenure. 

Are you planning to invest in the Fixed Deposit account? The FD account is one of the best investment options in India, helping Indian investors scale up their investments within a fair time without facing any investment risk.

The best part about investing in the FDs is that it promises you assured income, and you can plan your investment as per your specific financial plans. You can utilize the Fixed Deposit Calculator online to instantly know the amount you will get back on the maturity of the investment tenure. 

Approach the FD investment only after planning your financial goals. 

Before you invest in the FDs, give detailed consideration to your financial goals. The Fixed Deposit Calculator online will help you to explore the amount receivable at the end of the interest tenure. Your purpose of saving for your lifetime or saving and investing to meet specific goals shall decide the investment tenure you should select.

Investors can choose any investment length between 7 days to 10 years. The investors have decided on the investment length based on the investment purpose. As a piece of advice in this context, the longer the investment tenure you select, banks and NBFCs shall offer you a higher interest rate.

Also Read : How FD Interest Is Calculated By Banks Or NBFCs?

If you have to get the Best FD rates, you must select the investment tenure in a considerate manner so that the return is sufficient to meet your financial plans. 

It will help if you select the non-cumulative payout if you wish to get a fixed income from your fixed deposit. 

If you are a retired individual without a regular income source or looking for a secondary income source, you should opt for the non-cumulative payout from your FD. As you will make it from the name, the non-cumulative payout entitles you to receive the interest on the investment at fixed intervals, usually in a month or three months.

You can link your FD with your savings account for the auto-credit of the interest directly to your bank account. However, if you opt for the non-cumulative payout, you will not get any interest at the end of the investment tenure.

However, because the non-cumulative payout produces regular income, it is a wise option to consider if you are looking for a steady regular income. 

You should select longer investment tenure if you have to produce a fixed income from your investment. 

Are you planning to produce a fixed income source from your FD? If so, you should inevitably pick longer investment tenure. For this reason, the longer the investment tenure, the banks, and NBFCs offer high interest rates on investment. Therefore, you can produce significantly higher fixed income with the same investment amount if you select a longer investment lock-in period. 

Consider availing cash loans by pledging the FD Certificate to meet your exacting cash needs. 

You might encounter an urgent cash need anytime during the investment tenure. Even in such cases, the FD can extend significant assistance. Rather than liquidating your investment at a go, you can seek a cash loan by pledging the fixed deposit certificate.

As it is a secured loan, banks and NBFCs instantly approve such loan applications at the most competitive interest rates. Thus, you can easily match your cash needs without exhausting your savings. 

You can opt for the non-cumulative payout, even if you have a regular income source, and keep investing the non-cumulative return from the FD to invest in some investment tools that can produce a higher return. It will help you to protect the principal corpus from significant investment risk, as looking for higher returns, you inevitably need to get into high-risk investment options. 

By taking the right investment decision while the Fixed Deposit Interest Rates are rising, you can secure your future and walk along the path of the financial endowment. 

Also Read : What Is An FD Interest Calculator & What Are Its Benefits?


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