When it comes to risk-free savings, fixed deposits are a favorite option. You can easily open a fixed deposit at IndusInd Bank without stepping foot in the bank or standing in a queue for hours. If you are also planning to watch your wealth grow with IndusInd Bank, follow these tips to efficiently manage your FD accounts.
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There are two types of FDs meant for two different populations with different financial goals. The first one is a non-cumulative fixed deposit ideal for those who want their FDs to generate a regular income in the form of interest earnings. For this, IndusInd Bank offers flexible payable interest options like annual, quarterly, half-yearly, and monthly.
The second one is a cumulative fixed deposit that allows you to reinvest the interest and the principal amount and enjoy financial growth through compounding. These types of FDs give you more return on maturity.
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Managing your fixed deposit smartly can yield much better returns in the long run. One easy but often overlooked way to do that is to reinvest your money upon maturity.
Simply put, when your FD matures, you put the money back again into the FD scheme. You can only achieve this promptly if you monitor your investment regularly.
If you choose IndusInd Bank to park your savings, you will have no trouble reinvesting. That’s because IndusInd Bank offers auto-renewal service. Not only that, but you can book your FDs from the comfort of your mobile or computer using IndusNet.
The interest you accumulate on your fixed deposits is taxable. Moreover, diligently filing your income tax returns can help you earn better from your FDs. Staying on top of your ITR keeps you updated about any changes in the FD tax implications.
At IndusInd Bank, you get to open tax-saver fixed-term deposits of large amounts. So, suppose you fall under the low-income bracket and don’t have an overall taxable income. In that case, you can fill out your ITR along with Forms 15G or 15H to receive the tax exemption.
Putting all your eggs in one FD basket seems daunting because it reduces the liquidity period of your funds. One way to gain more returns without fixating your money for years is to ladder your FDs. In simple terms, you divide your one big FD into multiple small FDs and deposit them for different tenures.
At IndusInd Bank, you can find multiple FD schemes that allow you to leverage higher returns with a reduced risk of losses.
When you withdraw your fixed deposit money prematurely, it negatively impacts your interest earnings. Not only that, but you also have to a penalty to do so. It’s always advised that you do the math before choosing a tenure for your FDs and carefully account for any financial emergencies that you might face in that time frame.
We hope this article helps you manage your FDs better and make your savings grow efficiently. Invest with IndusInd Bank, invest confidently!
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Disclaimer: The information provided on the website is only for informational purposes and is not intended to, constitute legal advice, instead of all information, content, and other available materials.