BANGALORE: Bank fixed deposits are one of the safest investment avenues and there is very little chance of losing your money as banks are closely regulated and monitored by the Reserve Bank of India. In the current turbulent times, investors are increasingly banking on such age-old investment tools.

You know exactly how much return you will get when those mature, since the interest rate is fixed. But high inflation and the tax deducted on the interest earned are disadvantages. So, it would help to know how you can maximize the returns from your FD, in whatever small way.

Let’s have a look at some of the tips through which we can make more money through fixed deposits:

1. Looks for yields and not interest rates

If a company fixed deposit offers you an interest rate of 9.5 percent per annum and a bank deposit offers a similar rate, go for the bank deposit, because all banks compound interest quarterly, while several company deposits compound interest rate after 6 months. The maturity value on quarterly compounding is always higher. So, look for yield and not interest rates.