Ajit Karn
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For those who like to get guaranteed returns in investment, FD is the best option for them. Fixed returns are available in a fixed time through FD. But FD cannot be broken in the middle. If you do this, then you have to bear its loss. In such a situation, you should adopt such a way that you will get the full return of FD and you do not even need to break it in the middle. FD Laddering Technique can be the solution to your problem. Through this, you will not even need to break the FD money and you will continue to get its profit every year. Know how?
What is FD Laddering Technique
In FD laddering technique, instead of fixing the amount together, investment is made by making several FDs of different tenures. For example, you have 5 lakh rupees. In such a situation, instead of making an FD of Rs 5 lakh, get 5 FDs of Rs 1 lakh each and fix it for 1, 2, 3, 4 and 5 years. With this, every year one of your FDs will mature. In this way, sufficient liquidity will be available with you.
This is how you get benefit
You fixed your FD for 1, 2, 3, 4 and 5 years. In this case, your first FD will mature in 1 year. In such a situation, spend the money you will get from it when needed and fix the remaining amount again for five years. If you do not need that money at all, then fix the entire amount for the next 5 years. Your second FD will mature in the second year. In this way, every year your FD will mature one by one. You have to do the same with everyone. If needed, spend it and whatever is saved, fix it again for five years. In this way, the need of your money will be fulfilled from time to time and you will also get full interest of your FD.
Very useful for retired people
FD laddering technique is considered very effective for retired people. After the FD matures, they can use the interest amount and get the rest of the money re-fixed. In this way, they do not have any problem of money and their deposited amount is completely safe and they keep getting continuous interest on it.
