As we all know fixed deposits are known to be the safest form of investment. And, we also know that the fixed deposits fetch low returns when compared to investing in equities. But is there a way to increase the returns earned on fixed deposits without increasing the risk associated with it?

Research on different schemes available from various banks and choose the scheme that provides the highest return rates. Check the official website of different banks and check the profits you earn from each of the schemes.

It is recommended to split a lump sum of your money and deposit them in bits on different schemes rather than to put the entire lump sum on one fixed deposit scheme. This can help you earn better returns. Consider that you are investing in 5 separate fixed deposit accounts, each with RM2,500. You can design these investments in such a way that each of these accounts mature with a gap of a month or two between them. In this case, if you have an emergency and need RM3,500, then you can withdraw two portions of the fixed deposit. So, you are still earning the returns on the other 3 portions.

Renewing the fixed deposit can be one of the best options to make money with a fixed deposit account. Say, you have invested RM1,000 on a fixed deposit for an year and you have earned RM100 profit over the maturity of the fixed deposit. Now, renew the fixed deposit for another year where RM1,100 is your deposit amount. At the end of second year you will earn a profit of RM110. The total money at the time of maturity will be RM1,210. Hence, when you leave the profit untouched, you will earn considerably higher returns.

While investing in a fixed deposit account, you have to take care not to make premature or partial withdrawals from your account so that the profits can be fully earned.

You have to keep an eye on the promotional offers that banks occasionally bring-in. They may ask you to include fresh funds in order to get these promotional offers. Nevertheless, they provide high interest rates for tenures of shorter periods.

A foreign currency fixed deposit account is a type of fixed deposit account that has investments made in a foreign country’s currency. Foreign currency fixed deposit can help you with foreign investments and can also act as a hedge against fluctuating exchange rates. Various currencies that are supported under this facility are US Dollar (USD), Australian Dollar (AUD), Singapore Dollar (SGD), Canadian Dollar (CAD), Pound Sterling (GBP), European Euro (EUR), Japanese Yen (JPY), etc. Investors can choose to exchange the currency when the exchange rates become more suitable for them.

*Note: Currency (Deposit Amount) is mentioned in Malaysia Ringgit