Ways to Get Interest on Fixed Deposit Interest

Fixed deposits, as we all know offer guaranteed returns to the depositor at the end of the maturity date. They are one of the safest way to invest your money in. There are many ways to earn interest from your fixed deposit account. Read on to find out.

Research well: Decide which fixed deposit scheme to invest your money in after comparing the interest rates of several banks. Use your research to decide on the tenure or term of the scheme as well. Fixed deposit interest rates vary for different banks and tenures. Hence, you should research well to find out which bank is offering you the highest interest rate and invest your money accordingly.

Avoid early withdrawal: Until you are struck by an emergency, do not withdraw your fixed deposit prematurely. You will lose out on your interest that way. It is advisable to have a separate fund for emergency.

Select the right tenure or time: All fixed deposits have their own tenures within which you cannot withdraw your money. If you must withdraw, then you will not get any interest. Tenures may vary from one month to 24 months or even higher and the longer tenure you select, the higher will be your interest.

Reinvest your interest income: Your fixed deposit account provides you with two options – either withdraw the money at the time of maturity or reinvest it. The second option is always better as you can put your hard-earned money to good use again. Without increasing the deposit amount you still stand to earn higher interest provided you renew your deposit with the interest earned from the initial deposit.

Take advantage of promotions: Follow the bank’s website for attractive promotional offers. Banks roll out these offers to reach out to more customers at regular intervals or to attract fresh funds. Promotional offers include earning a higher interest rate, enjoying a more flexible tenure and so on. Promotional offers provide you with better deals on interest and tenures alike but come with a limited time period and certain terms and conditions which you need to fulfill.