Unlock Your Financial Potential: Choosing the Ideal Tenure for Maximum Returns on FD Investments

FDs offer a choice of tenure options and the option selected determines the interest rate. Here’s how to choose the right tenure for the best returns.

Think long-term

Usually, FDs with longer tenures offer higher rates than shorter tenures. So, if you have a long-term horizon, you should invest in long-term FDs.

Look for special schemes

Banks usually offer special FD schemes for special tenures. Such schemes carry higher interest rates even with shorter tenures.

The laddering strategy

By investing in multiple FDs with different tenures, you can maintain liquidity and reinvest the maturing short-term FDs.

Let’s say you have a 5-year horizon. You invest in five FDs for 1,2,3,4 and 5 years. From next year, the FDs will mature annually.

Since you have a 5-year horizon, you can reinvest the first four maturing FDs. Your returns will grow through compounding, allowing you to maximize your earnings.

Metra Trust Fixed Deposits offer attractive interest and tenures ranging from 7 days to 10 years. Pick the right tenure for maximum returns.

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