Sunday, July 14, 2024

FD Laddering: Transform Safe Investments into Wealth Machines

If you are one of those investors who like to invest in schemes with safe and guaranteed returns, then FD will definitely be included in your portfolio. FD gives guaranteed returns, but it is not so high that it can beat inflation in the long term. That is why most financial experts ask to include schemes like mutual funds in the portfolio apart from FD.

But if you do not want to take any kind of risk regarding your investment, then you can make the FD scheme itself a bumper return machine. But for this you will have to change the way of investing in FD and have to take a long term goal for wealth creation. By doing this, you can add a good amount from FD as well. Know here how to make big money from FD-

This technique will come in handy

Laddering technique can be very useful for you in making big money from FD. In this, instead of fixing the money at once, you have to invest it in several FDs of different duration. For example, you have 5 lakh rupees. In such a situation, instead of making an FD of 5 lakh rupees, make 5 FDs of 1 lakh each and fix them for 1, 2, 3, 4 and 5 years. This will make one of your FDs mature every year. This way you will have enough liquidity available.

This is how you get the benefit

You fixed your FD for 1, 2, 3, 4 and 5 years. In such a situation, your first FD will mature in 1 year. Fix it again for five years. Your second FD will mature in the second year. Fix it also for the next five years. In this way, your FD will mature every year one by one. You have to do the same with all of them. In this way, in the next 10 years, you will accumulate a good amount through FD.

Very effective for retired people

FD laddering technique is considered very effective for retired people. After the FD matures, they can use its interest amount and get the remaining money fixed again. In this way, from time to time when the FD matures, they will keep earning through interest and their deposited amount will be completely safe.


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