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.

The post FD Laddering Technique: Try this technique while getting FD done, there will be no FD break and you will get profit every year appeared first on Republic Aeon.

Bank Locker New Rules: January 1, 2023 i.e. from tomorrow onwards new revised rules regarding bank locker are coming into force. RBI had announced new guidelines through notifications on 8 August 2021 and new rules have come into force from 1 January 2022. Bank locker holders have to renew their agreement by tomorrow. Locker holders will have to show eligibility for a new locker agreement and enter into an agreement for renewal before January 1, 2023. As per RBI rules, the agreement has to be drafted on stamp paper. A duplicate copy will be made with the signatures of both, which will be given to the customer hiring the locker. Whereas the original agreement will be kept at the branch of the bank.

According to the new rule, if there is any damage to the goods kept in the bank locker, then the bank will be responsible for it. Banks will ensure that no unfair terms or conditions are included in their locker agreements.

Will I have to open a fixed deposit? What does RBI have to say?

RBI has given an exemption to the banks regarding the locker rent that they can ask the customer to open a fixed (term) deposit to cover the rent of the locker. The RBI has said in a circular that banks may face a possible situation where the locker hirer is neither operating the locker nor paying the rent. To ensure early payment of locker rent, banks are permitted to take a fixed deposit at the time of locker allotment, which will cover three years’ rent and locker opening charges in case of any such eventuality.

However, banks will not insist on taking such Fixed Deposits from existing locker holders or holders with well operated lockers. Allotment of locker facility with more Fixed Deposits, other than this permission, will be seen as a restrictive practice.

RBI also has a rule that if the locker rent is taken earlier, in case the locker is surrendered by the customer, an equal amount of the advance collected will be refunded to the customer. Further, if there is any event like merger/closure/shifting of branch, which requires changing the original location of the lockers, the Bank shall give a public notice in this regard in two newspapers (including one local daily in the local language) and inform the customers Will be informed. In case of sudden transfers due to natural calamities or any other such emergency, banks will inform their customers as soon as possible.

To understand more on the new locker rules and why this rush to the bank branches before December 31, 2022 deadline, read our @moneycontrolcom personal finance story on the big money changes affective January 1, 2023https://t.co/6mgVSGBqLB

— Kayezad E Adajania (@kayezad) December 31, 2022

The post New Bank Locker Rules: Will FD account now have to be opened for bank locker? What does RBI say? appeared first on Republic Aeon.