Tip by the Feelingfeeler on the 30th November, World Savings & Investment Day :-
1. If you don't know share market, if you don't want to keep Physical Certificates of NSC, KVP, if you don't want to invest in PPF for lock in, if you are not interested in LIC, if you are happy with your Saving Bank Balance @ 3.5% to 4%. Then, here are the new way of routing your Funds as per India's Traditional Habits with the use of availing Modern Online facilities. If you don't want to visit Banks for placing and maturity of FD. All you want just at your fingertips, then read ahead.
2. Keep Saving Bank Balance around Rs. 40,000/-. Start FD investment of Rs. 10,000/- each in Banks online through internet banking. Place 1st FD for 1 month with following options :-
a. Interest Cumulative.
b. Auto Closure of FD
c. Credit of Principal & Interest on Maturity to Saving account.
Like this place 2nd FD for 2 months... and hence, so on till your 12th FD is placed for 12 months.
If you follow above a,b,c you need not to go Bank every month, the amount will automatically credit your Saving Account on due dates.
Presently, Interest rates on Bank FD's are 6% to 7%.
3. When, your 1st FD matures, place it for 2 months. Eg. If you have placed 1st FD in April 2017, it would mature in May 2017.... But you have already placed 2nd FD in May for 2 months that will matured in July 2017. So your 1st FD when you will invest again for 2 months, it will mature in August 2017,,, in June 2017 you will place 3rd FD with 3 months tenure, so it will mature in September 2017.. Likewise, you have to keep creating New FD Online & also Place Old Matured FD's keeping in mind that your one FD will mature each months in upcoming months.
4. When, you come in 13 month, your FD will mature. Now place this FD in Corporate Online FD for the tenure of 13 month. Because, Corporate FD offer 7% to 8% interest rates. But their Tenure should be 12+... Hence, we have suggested this Chain of FD's. Presently, we found that HDFC Ltd., Mahindra Finance Ltd. is offering Online FD's at your fingertips with Aadhar OTP authentication. Just once create your Login & Passwords on these websites, so that you can view all FD's placed with them in single screen. You can also search other Corporate FD's as per your choice. Here, also you should keep Auto Closure option. In 15 months, tenure your FD will fetch around 10% with Cumulative Option.
5. So, I hope you would have understood the purpose of FD Investment to earn maximum interest rates, and also to protect your funds from unseen contingencies happening with the Banks and Corporates.
6. If you have Home Loan in affordable category and you have got interest subsidy,,, Then you must follow above style of FD chain to repay your Home Loan. Always place Rs. 10,000/- in FD, and when maturing monthly, use it to pay your loan repayment. It will help you to earn interest and also to reduce your Loan principal & Loan interest burden.
Don't directly repay your home loan without earning from repay amount.
After all choice is yours.
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Above suggestion is based on personal experience, not to advertise any institution. Our Banker is IDBI.
Thank you.
