Fixed Deposits may offer low interest rates, but they are among the safest of investment instruments. When you plan your FD investments, choose the schemes with the best FD interest rates to ensure higher returns on your deposits.

Compare interest rates and different schemes. Do you want to go for long-term investments or short-term deposits? Maybe a combination of both? Do you want to reinvest the interest earned or do you want a regular income plan FD?

You can choose a tax-saving fixed deposit, or ones that are linked to your savings account.

Generally, FD interest rates are higher, the longer the tenure of the deposit.

If you have a large amount that you want to put into safe investment instruments, choose a few good fixed deposit options and spread your spare funds over several FDs. Preferably, choose different banks or NBFCs for your deposits. This can give you the ability to choose schemes with the best Fixed Deposit rates. It also reduces the minimal risks involved in FD investments.

Also, ask yourself before investing whether you want the interest amount paid out to you as regular income, or you want the interest compounded. If you want easy liquidity, minimize investments in schemes like tax-saving Fixed Deposits, which lock down your investment for a relatively long term, usually five years.

Fixed deposits are flexible, easy to open, offer good liquidity, and also offer flexibility in interest payout and utilization. To get the maximum benefits from FD investments:

1) Stagger your investments over different tenures. Open FDs for tenures from one to five years so that you have deposits maturing at different times to provide you access to cash at regular intervals.

2) Reinvest the matured funds in FDs or Mutual Funds to ensure that your extra funds do not remain idle.

3) Invest in schemes like Special Fixed Deposits (FDs invested for a specific number of days) or long tenure FDs to get higher interest rates.

4) If you are a senior citizen or someone who depends on investments for regular income, choose a monthly or quarterly income plan on your FDs. Here, the interest amount is regularly paid out to you to deal with your normal expenses.

5) If you do not need the funds, reinvest the interest payouts back in the deposit to earn more.

6) Many banks and NBFCs offer higher FD interest rates for senior citizens, and sometimes, special schemes for women. Opt for these if they are apt and can give you higher returns on your investments.

7) If you need to keep large sums in your savings account for emergencies, choose Flexi Deposit schemes. In these, funds above a threshold you specify are diverted to a linked FD and earn more interest. The FD funds are always available to you as if they were actually in your savings account.

8) Some NBFCs may offer higher interest rates than banks, you can check their credit rating and invest your funds in schemes offered by these NBFCs.

9) Company FDs can offer the best fixed deposit rates in india. They can be risky, so choose AAA rated companies to invest with. These ratings are given by accredited financial analytical organizations like CRISIL.

10) Tax-Saving Fixed Deposits lock down your funds for five years, but provide higher interest rates and also provide you tax benefits under Section 80C of the IT Act.

Fixed Deposits are flexible and are safer than most other investment instruments. Go to financial marketplace websites and do a fixed deposit interest rates comparison. Choose good deposit schemes with safe institutions. Split your deposits across different financial organizations and corporate FD schemes.

Invest in income plans as well as reinvestment plans for flexibility in earnings. Fixed deposits are great investment choices if you plan well and invest wisely.