How Can You Get Maximum Returns on IndusInd Bank Online FD?

How Can You Get Maximum Returns on IndusInd Bank Online FD?

How Can You Get Maximum Returns on IndusInd Bank Online FD?

If you are a risk-averse investor, IndusInd Bank’s online fixed deposits are the perfect financial tool for you. They give you assured returns at high rates of interest and offer liquidity so that you can access your savings in times of need.

Although fixed deposits offer several benefits, you should also plan your investments so that you can make the most of your savings. Here’s how you can get the maximum returns on your IndusInd Bank online fixed deposit.

Know Your Financial Goals

Before you invest in an FD, you should have a clear understanding of your financial objectives. Only then can you make the most out of your investment. Typically, your short-term investments will serve your short-term needs, and your long-term investments will meet your long-term needs.

So, if you want to create one or more fixed deposits, be clear on the purpose of each one. This step will help you choose your investment amount, tenure, and FD variant (cumulative or non-cumulative).

Consider Auto-renewal

You can maximise your returns if you know how to manage your deposits well. Once your fixed deposit reaches its maturity date, you have two options. Either you can withdraw the amount at maturity, or you can renew the fixed deposit. But if you happen to forget about the money, it will lie stagnant with the bank.

IndusInd Bank’s online FDs have an auto-renewal facility, so you can choose to renew your deposits while you are booking them. Auto-renewing can be beneficial if you don’t need the money shortly and the interest rates have increased.

Understand the Taxation Laws

While managing your FDs, you must file your returns on time and be aware of the latest changes in the tax laws for FD returns. By doing this, you can take advantage of those tax exemptions for which you are eligible.

For example, if you are a senior citizen and have no tax liabilities, you can submit form 15H and request exemption from TDS on your interest income.

Consider the Laddering Method

With the laddering method, you can divide your total amount into multiple FDs with different tenures. 

Suppose you want to invest Rs. 10 lakhs. You can break this amount into five equal deposits of Rs. 2 lakh each but with different maturity dates and set up auto-renewal.

Thus, you will have Rs 2 lakh each in a 1-year, 2-year, 3-year, 4-year and 5-year deposit. When your 1-year FD matures and gets auto-renewed for five more years, it will mature in the sixth year. Similarly, the 2-year FD will mature in the seventh year. The 3-year FD will mature in the eighth year and so on.

By doing this, you will create an investment loop where one of your FDs matures every year. Depending on your corpus and financial needs, you can create your own ladder. And IndusInd Bank’s online FDs offer you flexible tenure options, so you can choose any number of years you desire.

There are two benefits of the ladder method:

  1. You don’t need to liquify all of your savings when you need funds if liquidating a single FD can solve your needs. In this way, you will not miss out on interest earnings on your remaining investments but have liquidity at the same time.
  2. You will average out any interest rate fluctuation in the long term.

In Conclusion

FDs are low-risk investment avenues that offer moderate returns. However, planning your investments can help you get the most out of your fixed deposits. With IndusInd Bank’s online fixed deposits, you can easily manage your funds online and put your hard-earned money to work!

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How Can You Get Maximum Returns on IndusInd Bank Online FD?

How Can You Get Maximum Returns on IndusInd Bank Online FD?

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