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5 Hacks to Maximise Your Returns on Fixed Deposits

Did you know that some simple hacks can help you maximise your fixed deposit returns? Read further to learn more.

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One of the most popular investment avenues for risk-averse investors is a fixed deposit (FD). According to most financial experts, if you have money that you do not plan to spend in the near future, keeping it in a fixed deposit account is a profitable option. What makes fixed deposits a popular choice among Indian investors is that they are a safe investment mode that guarantees fixed returns, unlike other mediums. Another great feature of fixed-term deposit accounts is that they are not market-driven and immune to market fluctuations. As an investor, you will have a clear picture of how much money you will earn when the FD matures. Moreover, opening a fixed deposit account online with a trusted financial institution such as IndusInd Bank can provide you with additional benefits and rewards.

However, did you know that some simple hacks can help you maximise your fixed deposit returns? Read further to learn more.

1. Compare the Rates of Interests    

The first and foremost tip is to compare the interest rates of different institutions as they usually differ. Needless to say that in case of an FD, a higher interest rate will help you earn higher profit. Financial institutions are generally competitive with fixed deposit interest rates, so you must choose a lender that offers the highest rate of interest on your investment to attain maximum returns. However, you must make sure that the lender has good credentials and can provide safety as well. For instance, IndusInd Bank offers FD rates as high as 8.75% along with flexible tenures on its fixed-term deposits.

2. Open FD in the Name of Your Parents

The FD rates can depend on multiple factors, including age. Most banks offer higher fixed depositinterest rates for senior citizens. IndusInd Bank’s senior citizen saving scheme offers 7% interest on fixed deposit to individuals over the age of 60. Thus, opening an FD for your parents or in their name can help you generate more profit and ensure security for them in their old age.

3. Invest in a Short-term Plan 

The rate of interest and inflation generally goes hand in hand. Hence, opting for a short-term fixed deposit can help you beat inflation and get maximum returns on your fixed deposit. This is also a great option if your investment goal is to generate more wealth. You can renew your short-term plan and earn a profit on the FD renewal.

4. Spread Your Investment in Multiple FDs

To make the best use of your funds, it is best to open multiple FD accounts with both government and private banks. If you wish to make a big investment, spreading the FDs can lower the risk and fetch high returns. Choosing investment plans with different maturities will also help you manage your liquidity better. However, while choosing different banks, make sure to check their stability and dependability.

5. Opt for a Cumulative Fixed Deposit 

A cumulative fixed deposit plan allows you to re-invest your interest and grow your corpus to get extended compounding benefits. This is an ideal way to invest for those who don’t need a regular income source as it will maximise your FD investment. On the other hand, non-cumulative FDs pay the interest regularly and offer no compounding effect, making them suitable for retired individuals.

Considering Where to Open a Fixed Deposit Account?

If you are planning to open a fixed deposit account, choose IndusInd Bank. The best part is you can open a fixed deposit account online within minutes, providing you a hassle-free service experience. The application process only requires essential documents such as identity and address proof. All you need to do is choose the amount, tenure and maturity instructions and you are ready to go. Therefore, you can open an FD from the comfort of your own home or visit any nearby branch of the bank.


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