How to Earn More Through Your FD Investment

Fixed deposits are one of the preferred modes of investment to multiply one's savings. This investment option offers guaranteed returns, high interest rate, flexible tenor, and many other additional benefits.

You can increase your FD earnings following these easy steps.

1. Look for highest interest rate FDs: One way to earn more through your FD investment is by initially investing in a high-interest rate FD scheme. There are financial institutions which offer more than 8% per annum returns on investment for their FD schemes. You can approach these institutions if you want your investment to earn you higher ROI.
    
2. Invest in multiple FDs to gain from varying interest rates: If you are planning to invest in FDs and want to gain maximum returns, you should invest in multiple FDs rather than one. This is to avoid losing the potential benefits due to unplanned emergencies leading to liquidation. Plus, if you invest in multiple FDs rather than one, you’ll be able to invest them for different tenors and gain higher returns from varying interest rates.
3. Invest in cumulative FDs: Talking about FD you must know there are two different types of this product: cumulative FD and non-cumulative FD. The only difference between the two types is mainly the interest payout frequency: cumulative FDs pay the total maturity amount which also includes the interest accumulated at once whereas, non-cumulative FDs pay out the accumulated interest after fixed intervals (frequency is decided by the investor). 

Bottom line: Please check the CRISIL ratings given to a particular fixed deposit scheme before investing in it.