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FD Tips: FD will also become a scheme giving bumper returns, adopting a laddering strategy, know how to avail the benefits...

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Fixed deposit i.e. FD is considered to be one of the most popular methods of investment in the country. If you like investments with safe and guaranteed returns, then FD will be included in your portfolio. However, many people feel that big money cannot be added to fixed deposits. If you also think like this then change your thinking now. Actually, by adopting a laddering strategy, you can easily create wealth through FD.

In the FD laddering technique, instead of fixing the amount together, investment is made by making several FDs of different tenures. In other words, instead of making one long-term FD, one should invest in a series of FDs of different time frames. This is called FD laddering.

Investing in different FDs

Suppose you have Rs 5 lakh in your savings account. If you invest this amount in only one FD, you may not get better returns. If you use the ‘laddering’ strategy, you can divide the amount of Rs 5 lakh into 5 different FDs with different interest rates and tenure. The advantage of this strategy is that investors get direct benefit from interest rate fluctuations and it helps in increasing their returns.

Can take advantage of increased interest rates

Banks give the benefit of increased interest rates only after renewing the FD or making a new FD. Not on the old FD. If we have made FD through a ladder strategy, then one or the other FD of yours will mature in a short time. When we invest the same money in a new FD, we will get the benefit of increased rates.

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