After the reduction in repo rates by the central bank (Reserve Bank of India), investors have been considering fixed income instruments that offer fixed returns without volatility to diversify their portfolios. Triple-A-rated deposits offered by financial institutions are emerging as a viable option. PNB Housing Finance is among those who are offering the best fd rates.

However, experts believe that now is the best time to consider investing in fixed deposits. This is because they aren’t certain whether deposit interest rates would be increased anytime soon. Hence, depositors have also been keen to understand how they can earn higher interest rates on their deposits.

Here are a few ways to do the same:

Select a financial institution with high returns

The first step to increase returns is to choose a credible financial institution for fixed deposits that offer higher interest rates. Depositors are always on the lookout to discover financial institutions which can offer the highest fixed deposit interest rates.

Therefore, it is preferable to choose a lender that offers interest rates equivalent to at least 7.5% or more. This will enable depositors to grow their savings

Depositors can also seek recommendations from their network about financial institutions that can offer high returns.

Select a housing finance institution

Various housing finance institutions that offer competitive rates on Fixed Deposits. Depositors must consider a housing finance institution that offers the highest fixed deposit interest rates. As compared to other financial institutions, a housing finance company may be able to offer better returns on fixed deposits.

Invest in multiple fixed deposits

Multiple sources of income can indeed provide investors with higher income. Similarly, investment in multiple fixed deposits could earn you higher interest income. Some of the advantages of investing in multiple fixed deposits are listed below.

  • Varying rates of interest can be beneficial

  • Increase in returns.

  • Use the varying maturity period to leverage a lump sum amount of money.

Re-invest the interest income

To earn more from fixed deposits, it is essential to re-invest it. When you keep on re-investing the sum that you receive at the time of maturity, it helps your income to grow. Over time, the re-invested income can turn into a decently sized fund which can be used for expensive purchases or emergencies.

If you are investing in a fixed deposit (FD) to increase your wealth, then you must understand the lender’s renewal policy so that you can make the necessary arrangements. You should choose the right financier that offers the best fd rates to increase your gains.

It is common knowledge that depositors are looking for healthy returns on their invested funds. There is no problem in seeking high-interest rates, but one should not take any hasty decisions. One should not only look at the high-interest rates but also consider all the other factors before investing.

In the existing scenario, institutions offering deposit rates of 8% and are favored. Depositors can also try out comparing the different interest rates offered by different lenders to find out the highest returning one among them.

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