FD is still considered to be the most popular investment option in India. A large number of people in the country depend on the interest income received from FD for post-retirement needs. Being a high return and low-risk investment option, people prefer to invest in FD. If you want to invest to meet your big financial goals or to prepare an emergency fund, FD is a better investment option. If you want to get better returns from your investment, you need to invest in a better FD scheme. A better scheme is one that provides the highest rate of interest to the customer for the time period selected. It is also safe. Today, we will tell you some of the things that you can choose a better FD scheme.
Interest Rate:
The customer must compare the interest rates of different FD schemes available in the market while getting FD. The same bank's FD scheme may prove to be better for the customer for the period for which the customer wants to get FD.
Make sure to Preserve your Money:
It is not enough to have a higher rate of interest for a better FD scheme. The customer should also check the credibility of the FD provider. It is good to choose an FD scheme with a rating 'A.' If a reliable rating is received from organizations like CRISIL or ICRA, customers can go for FD.
Interest Payment Options:
Before investing in FD, the customer should check whether any FD interest payment option is also being given to the investor. It should also be seen here that the interest payment option is monthly, quarterly, half-yearly, or yearly. With this information, customers will be able to choose a better FD scheme for themselves.
Period:
The customer should also take good information about the lock-in period of the FD scheme. The longer the customer's money is in the FD, the higher the return. Therefore, by investing in a long lock-in period FD, the customer can get more returns.
Penalty Fee:
Many a time, if required, the investor has to get FD before maturity. In this situation, the customer takes a penalty fee. The customer should be aware of the penalty fee of various FD schemes before investing and who should choose a better scheme for themselves.
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