FD: At present, most people are investing somewhere in the hope of good returns. Many people are benefiting from this. But did you know that one step of yours can make you a millionaire or a millionaire? Yes, you heard it right. Most people consider FD to be reliable because there is no risk in it and your investment is safe. But people feel that a lot of money cannot be made from Fixed Deposit. But in the case of FD, there is also a smart way of investing, which can make you profit every year. With this, you can accumulate a huge fund in a few years.
How to create wealth with FD
FD Laddering Technique is a technique through which you can make a lot of money in 10 to 15 years. In FD laddering technique, the entire amount is not fixed together, rather it is invested by making several FDs of different duration.
Application Process
You can understand how this technique works by taking an example. Suppose you have 5 lakh rupees and you want to make an FD of Rs 5 lakh. For example, you have 5 lakh rupees. In such a case, instead of making an FD of Rs 5 lakh, you should make 5 FDs of Rs 1 lakh each and fix them for 1, 2, 3, 4 and 5 years.
When you invest through the laddering technique, your FD matures every year. Suppose you fixed the money for 1, 2, 3, 4 and 5 years. In this case, you have 5 FDs. The first FD will mature in 1 year. Whatever interest you got on this FD, you should get the entire amount including that interest fixed again for the next 5 years. Your second FD will mature in the second year. In this way, your FD will mature one by one every year and every year you will earn profit on your deposited amount.
After the FD matures, you have to fix each FD one by one for the next 5 years. In this way, you will fix the FD every year with the increased amount along with the interest and then the entire amount will earn a better interest in 5 years. In this way, you can earn a lot of profit through this.