Make FDs Pump Better Returns! 🤑🫰🏼
Hello lovelies!
I know all of you were swamped with an overdose of Valentines online over the last couple of days. So, I thought I could chime right in and talk about your parents’ one true love in the name of investments: Fixed Deposits aka FDs!
But you know the grind, we’ll get to it in the end!
Market ka haal: In a tumultuous dance through the stock market's twists and turns, Indian benchmark indices ended triumphantly with Nifty soaring above 21,800 for the second day running. While Major European markets reveled in the green, their Asian counterparts like Nikkei and KOSPI found themselves in a downward spiral. Blame it on the US inflation data making waves – it strutted in above expectations, sparking whispers that the Federal Reserve might ease off the interest rate reduction pedal this year.
However, amidst the chaos, our domestic market showcased resilience, buoyed by renewed interest in banking stocks. PSU banks, enticed by improving asset quality and government fiscal prudence, re-entered the fray, though concerns lingered over their lofty valuations. Adding a pinch of excitement to the mix, the UK served up a delectable dish of favorable inflation figures, stirring optimism into the global recovery pot. 🚀
What I was up to: Apart from wishing to still be on vacation, I've been quite busy catching up with work. 🙈 Podcasting demands a lot from us- it’s a LOT of work and we're swamped!
🌟 There 👏🏽 Is 👏🏽 A 👏🏽 New 👏🏽 Episode 👏🏽 Every 👏🏽 FRIDAY! 🌟
Here’s the last one:
My go-to stress buster this week has been rewatching Suits because it requires so much effort to find something new that won't disappoint, and they just don't make shows like that anymore. (Please DM reccos if you have any!) Nevertheless, I did manage to socialize with actual people, and not just those on my screens, at Zomaland with a side of fantastic food!
Like what you’re reading? Please share this with your friends and have them sign up too!
Humara Gyaan: We often tease our parents for sticking to FDs when it comes to investing. But what if there's a smarter way to approach FDs for better returns? I’ve got an actionable tip for you to entice them with a better way to invest in FDs. Enter:
✨FD Laddering✨
FD laddering is a strategy where you split your money into fixed deposits (FDs) with different maturity dates. Instead of putting all your money into one FD, you spread it out across several, like rungs on a ladder. As each FD matures, you can reinvest or use the money, creating a steady income stream.
For example, creating an FD of 10 lakhs for three years at a 7% interest rate will give you a fixed return. But if you split it into three parts and create an FD with each part for 1, 2, and 3 years respectively, at differing rates of interest, one of these will mature every year. By reinvesting each maturity amount annually, you will make a lot more money.
Here are 3 LEGIT reasons to ladder your FDs:
Smart Risk Management: Think of FD laddering like spreading your bets at a poker table. By splitting your money into different FDs with various maturity dates, you're not putting all your eggs in one basket. This way, you're cushioned against sudden interest rate drops and market changes.
Boosted Returns: It's like hitting the sweet spot in a game – FD laddering lets you play the field. By locking in different interest rates over varying periods, you maximize your overall returns. It's a bit like getting the best deals from multiple stores at the same time!
Flexibility on Tap: Picture having a stash of cash on hand whenever you need it. With FD laddering, you've got a constant flow of funds becoming available as each FD matures. It's like having a financial tap that you can turn on whenever you want to fund a goal, tackle an unexpected expense, or simply reinvest for more growth.
Exploring smarter ways to invest and save is key to securing financial stability is literally the only way to achieve your financial goals in 2024! Stay informed, stay proactive, and continue to let Niyati & I usher you toward financial empowerment!
Here's to a year of “Everything you touch will turn into gold!”✨
Sayali❤️
Follow us if you don't already: Twitter | Instagram | LinkedIn | Facebook | YouTube