FDs are one of the popular investment options for those who want stable returns. As FDs offer a higher interest rate they are popular. Another option is investing in Corporate FDs. You can invest your money and the corporate companies provide a fixed rate of interest on the investment made.

Corporate FDs are ideal for those who are interested in guaranteed and fixed returns. You can calculate interest payments monthly, quarterly or when FD matures. To get higher returns you should invest for a longer period and consider reinvesting the interest earned.

Investing in Corporate FDs can be a valuable addition to your portfolio. However, you should invest wisely and for the long term.

How to maximise your Corporate FD returns?

• The biggest advantage of investing in Corporate FDs is that they offer competitive rates of interest. Interest rates are competitive based on tenure. The longer the period you invest for the higher the rate of interest. To maximise your returns you should invest for a longer lock-in period.
• For example, suppose you invest in a corporate FD for just 90 days then the rate of interest will be 6%, if you invest for 120 days then the rate of interest will be 6.50% and if you invest for the whole year then the rate of interest will rise to 7.25%.
• There are Callable Corporate FDs that allow you to make premature withdrawals when required. The tenure of these FDs can vary from 7 days - 10 years. This offers flexibility to the investors.
• Investors can withdraw the money before the maturity date but terms and conditions have to be followed. This makes it a good investment option to save for unexpected financial crises.
• To get maximum returns on the FD you can reinvest the earned interest. When you reinvest your earned interest it will get added to the principal amount. You can now earn interest on this new amount. This can help you get compound interest which can significantly increase your returns.
• Renewing your FD upon maturity can be easily done through the auto-renew option provided. Now the interest rate on the day of renewal applies. This helps you to know how much you will get in the new term by the power of compounding.
• Diversification is required to manage the risk in your investment portfolio. It is advisable to invest across various asset classes to minimise the risk and loss of money. You can easily diversify your investment portfolio by investing in Corporate FDs. This allows you to earn a fixed rate of interest on your money and also further diversify your portfolio.

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The author is a blogger and likes to blog about the various investment options available. Currently, the author has explained corporate FDs and online trading.