Current time, many people have faith in FD’s. Because it’s profitable. If you want to profit from FD, then get many FDs done simultaneously, and that too according to different tenures. For example, you have Rs 5 lakh. In such a situation, instead of making a single FD of Rs 5 lakh, make 5 FDs of 1-1 lakh and fix it for 1, 2, 3, 4, and 5 years. You fixed your FD for 1, 2, 3, 4, and 5 years. In this case, your first FD will mature in 1 year. In the second year, your second FD will mature. In this way, one by one, your FD will mature every year.
FD invest
On maturity, you have to get the amount of every FD fixed again for the next 5 years, including interest. After the first FD matures, if you fix it again for the next 5 years, then it will mature on the 6th year. If the FD maturing on the second year is fixed for 5 years, then it will mature on the 7th year. In this way, the process of maturity of your FD will continue every year for 10 years. This trick is called the FD Laddering Technique.
Know the tricks
The advantage of the FD Laddering Technique is that you get the benefit of interest every year on FD and adequate liquidity remains. If you need, you can use the interest amount from the maturity amount for your expenses and get the FD fixed again. On the other hand, if you want to make good money from FD, then after maturity, keep fixing the entire amount, including interest, for the next 5 years. These sequences can also be run for however long you can and add big money.
The FD ladering technique is very useful for retired people. After the FD matures, they can use its interest amount and get the rest of the money fixed again. In this way, they can easily meet their money needs, and their deposited amount is also completely safe, and they continue to get interest on it.
Double money in FD
If you get a single FD of 5 lakh and you need 1 or 2 lakh, then if you break an FD of 5 lakh to meet that need, then the penalty the bank will take instead of 5 lakhs. But if you invest using the laddering technique, then you will have to break 1 or 2 FDs to meet the requirement of 1 or 2 lakhs. The remaining 3 FDs will not have to be touched. The penalty that will be made will have to be paid only on one or two FDs, and this penalty will be less than the FD of 5 lakhs.
Desclimer : For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.