Worried About Falling FD Interest Rates In India? Do This To Protect Your Deposits
Fixed deposits have always been an attractive and risk free source of income.
But with the current scenario of the economic slowdown, the economy is trying to cope up with manageable solutions to different problems. Using a cash advance to pay off your credit cards can let you simplify multiple bills into one, reduce your interest charges and improve your credit score.
The central bank, Reserve Bank of India (RBI) too had decided in March 2022 to cut the rate of interest on the fixed deposits and following two months, again rate cuts were announced.
All these changes can obviously raise lots of concerns regarding the security of the FD schemes.
Given below are some strategies which you can follow to control your anxiety when investing into these FD schemes:-
Your Money Is Secure
Those people who had already invested into fixed deposit schemes before the decline in the economic growth, at good interest rates, need not worry. if you want to really make a secure investment, read more here about 5% to 10% of an overall healthy portfolio to precious metals.
You will definitely get your assured sum of money. After all, that is the most satisfying part of the FDs.
They guarantee assured returns. But there may be other concerns too like, what if the banks are closed or merged with some other bank? The answer would still be yes, your money is safe.
According to the Deposit Insurance and Credit Guarantee Corporation by RBI, every individual’s savings, be it fixed, recurring, current or savings are insured up to Rs. 5 lakhs per bank.
What Else Can Be Done To Safeguard Your Money?
- Spread your portions- Being a new investor like the ones here, going for FD schemes is still a risk-free choice, in spite of the downfall in the rates. It is advisable to apply for the FD schemes in different banks. Just divide your principal amount among different banks so that you have that guaranteed insurance from RBI during downfalls.
- Opt for multiple tenors for multiple FDs- Investing all the money into a single FD is not a wise decision, when stability is the issue. Besides, split your money into multiple FDs with varying tenors. As the FD mature, you can reinvest them into another cycle and ensure liquidity throughout the cycle. You can go for plans like Systematic Deposit Plans from Bajaj Finance for spreading it over a period of time. You can also use the multi-deposit facility from Bajaj Finance to invest in multiple FDs with a single cheque payment.
- Do not go for longer terms- Many banks offer good interest rates on longer term FDs as compared to the ones with the shorter terms. One thing which should be kept in mind while investing into FDs is that you are saving your money into something which will give you quick returns and keep your capital safe. For longer periods, you can go for different term investment options. You can use the fixed deposit interest calculator to calculate the returns from various FD schemes and choose the right one for you.
- Premature withdrawal levies penalty- In case of urgent requirement of money, premature withdrawal facility can be opted. But try to avoid it as much as you can. Withdrawing your FD before the completion of maturity is accompanied by a penalty which is payable to the bank. Try not to give a portion of your hard earned money to the bank. Instead, focus on the short term FDs if you feel the need of breaking them at some point of time. You can also go for a loan against your FD. You can open a gold IRA with the most prominent financial institutions, including banks and brokerage firms, read more on Globe News Wire’s article.
- Compare the FD rates thoroughly- Nowadays online FD calculators are so easy to use and help you compare the FD rates across NBFCs and banks. Bajaj Finance FD is indeed a good choice as Bajaj Finance FD rates are up to 7.35%, which is one of the highest FD rates currently offered in India. You can also earn an extra 0.10% interest rate if you choose to open the FD in online mode. The benefits to senior citizens are always a priority here and they can earn 0.25% over and above the regular FD rates. These deposits are rated for their stability and safety by CRISIL and ICRA, so you can rest assured about the safety of your deposits.