Sunday, April 12, 2009

A smart decesion to get good return on FD is to lock them now.

One of the only investment which gave positive return after Jan 2008 is Bank FD.
With an average interest rate of 9% pa FD's act as a stable source of income.
Now its hight time to take a FD and lock it due to certain reasons -
  • Banks are cutting key interest rates.
  • Inflation is lowering.

What should you do?

Should you lock in? If you are getting a good rate and you have funds available with you for some time, go ahead. "You will not be able to get that rate for the next few quarters," says Ashish Kapoor. For a retired person who wants regular income, it makes a lot of sense to put his money in an FD now.

"In many cases, individuals want to keep money available for a possible market upswing," says Vishal Kapoor. Consider this factor before locking your funds in an FD.

Earlier, there were options like fixed maturity plans which aren't so attractive now. via

A smart decision thus lies in locking your FD for good returns.

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