Fixed Deposit (FD): 3 Tips To Help Maximise Returns
invest in FD! In a regular non-cumulative FD, the interest is paid out regularly. Contrarily, cumulative FDs compound the interest. The interest accumulation of one year or cycle is reinvested along with the principal amount for the next year.
Over the years, the investment amount keeps increasing, and so do the returns. Cumulative FDs generate the FD returns, including the principal amount and accrued interest at maturity. Although they are not ideal for investors with regular income requirements, they are one of the fastest ways of capital growth.
Multiple factors need consideration before any investment from either a novice or a seasoned investor. In this case, interest rates on FD investments are crucial whether you invest in a short or long-term FD or go for the FD diversification strategy. A high rate of interest will keep the returns elevated from the beginning.
Before opening the account, check out the premature withdrawal charges to stay informed and plan better for emergencies. Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. The article does not constitute financial advice.Milestone Alert!
Livemint tops charts as the fastest growing news website in the world
