Fixed deposit (FD) is a financial investment option offered by banks or NBFCs, in which investors get higher interest rates over the maturity period than regular savings accounts. It is known as fixed deposit or time deposit in Canada, Australia, New Zealand, India.

Invest in more than one FD

A good way to invest in FDs is to invest in more than one FD with less money than to invest more money in a single FD. Having more than one FD in your investment portfolio with less money is considered a better option. There is a logic behind it. In fact, money is often needed in life. In such a situation, there may be an emergency that you may have to break FD. At that time, if you have more FD of less money then you will be able to run your work by breaking an FD and your FD will continue to run. But if there is only a large amount of FD, then you will not have another option.

Get all information related to FD Scheme

It is often the case that a bank pays interest at different rates at different periods. Whereas you go to the bank to get the FD according to the period. At that time it is important for you to know the interest rate for all the periods and take full details. This will give you a higher interest rate option. For example, a bank pays 5% on 1 year and 6% on 2 years. So by calculating your requirements, you can get more interest by getting FD for long term. Such things can prove very helpful for you.

Loan facility is available on FD

If you do not know, then keep in mind that you can also get a loan on your FD. This can help you avoid getting your FD broken in times of need. You can get a loan of 80 to 90 percent of the value of the deposit in the FD. Here the rate of interest can be 1 to 2 percent higher than the rate given on FD. But still the interest rate option like personal loan will be less. You can also open an FD account for at least 7 days. Often people do not pay attention to these things. If you keep these things in mind, then you can get money easily in times of need.