What an FD ladder really means

An FD ladder is a clever way to invest your money across multiple fixed deposits with different maturity periods. Instead of locking all your funds into one long-term FD, you split the amount into several smaller deposits with staggered tenures. For example, you might invest in 1-year, 2-year, 3-year, and 5-year FDs. As each FD matures, you can reinvest it at current interest rates or withdraw funds if needed. In this way, you are earning good returns while keeping some amount in hand.

Why laddering is a good idea in 2025

Interest rates have been unstable, and experts anticipate 2025 to witness another round of rate movement on the back of inflation and RBI policy action. Planning an FD ladder currently serves to time your current higher rates for longer t

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