Talking about the best option for a safe investment, investors trust FD the most. The option of investing in a fixed deposit is available from 7 days to 10 years. In such a situation, you get interest in FD at different periods. But through FD, you can get more returns than expected. For this, you have to adopt a special formula.

If you want to get more returns from FD, then for this you have to invest for different periods. For example, let's assume that you have to do an FD of Rs 5 lakh, and then invest it for different periods.

Separate FDs of Rs 1 lakh each

To get more returns on FD, you can do 5 separate FDs of Rs 1 lakh each. Invest all these FDs for 1,2,3,4,5 years. In such a situation, after every year, one of your FDs will mature in five years.

Whenever your FD matures, invest it again for five years along with the interest. In this way, the sequence of maturing of all your FDs will continue. This is known as the FD laddering technique of investment.

Better returns

By investing with the FD laddering technique, you can get higher returns on FD. Also, if you need money, you can use the interest amount from the maturity. Also, you can fix the FD again.

A better option for retirement

FD laddering is a very good option for retirement. When the FD matures, its interest can be used. The remaining money can be reinvested. This not only keeps your money safe but you also get better returns. You also keep getting interest in your investment continuously.

Helpful in emergency needs too

If needed, you can break your FD of Rs 1 lakh. On the other hand, if you have made an FD of Rs 5 lakh, then if needed, you have to break the entire FD of Rs 5 lakh, due to which you suffer a huge loss. But in laddering, you can get better returns by breaking just one or as many FDs as needed.