Use your fixed deposit to get a loan

With lending rates rising steadily, you would think twice before taking any kind of loan. In fact, in case you really need the money, you would think of liquidating your assets first instead of paying high rates on, say, a personal loan.

But there is one asset that you wouldn’t want to liquidate—fixed deposits (FDs). FDs are giving as much as 10.75% per annum as of now and it’s unlikely they will continue to pay so much six-eight months down the line. Says Suresh Sadagopan, a Mumbai-based certified financial planner, “Instead of breaking a high-interest FD, it’s better to take a loan against FD. The interest rates are expected to start correcting in six-eight months and you may not get such good rates after that.”

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