For investing in a fixed deposit plan, you can either approach a bank, post office, or finance company. Though it is simple to invest in FD and predict the returns by using a standard tool like an FD calculator, it is not easy to choose among the FD schemes that are being offered by various banks and NBFCs in India. The best way to select between FD schemes that offer similar features and benefits is to compare their FD interest rates. To get the highest FD rate of interest in India, you can adopt the following practices:
Invest in a long-term FD
It has been observed that financial institutions offer their highest FD rates for longer tenors. Therefore, to earn sufficient interest income, you should pick an FD scheme that allows you to invest in a long-term FD. Reinvesting the FD returns upon maturity is another way of multiplying the returns over a longer period.
Choose to invest in cumulative FDs
Cumulative FDs always generate tad higher returns than non-cumulative FDs. The periodic interest payouts offered by non-cumulative FDs keep the principal deposit constant whereas cumulative FDs keep adding the interest amount to the principal after every interest calculation cycle. This compounds your interest gains quickly over the tenor.
Go for corporate FDs
The highest fixed deposit rates in India are being offered by corporate FDs like Bajaj Finance FD. The FD interest rate provided by Bajaj Finance FD can be as high as 6.75%. Therefore, you can invest in a long-term Bajaj Finance cumulative FD to earn enough returns at maturity. Let’s verify this with an example:
Assume that you invest Rs. 30,00,000 in a bank FD for 5 years and one of your colleagues invest the same amount in a Bajaj Finance FD for 5 years. The difference in FD returns can be seen in the table below:
|
FD plan |
Amount |
Tenor |
FD rate |
Interest |
Returns |
Growth in savings (%) |
|
Bank FD |
Rs. 30,00,000 |
5 years |
5.25% |
Rs. 8,93,874 |
Rs. 38,93,874 |
29.75% |
|
Bajaj Finance FD |
Rs. 30,00,000 |
5 years |
6.75% |
Rs. 11,58,730 |
Rs. 41,58,730 |
38.62% |
It is quite evident that Bajaj Finance FD not only offers better interest rates and returns but also allows you to achieve significant growth in savings. To determine the FD rate of interest and returns for other tenor and investment amounts, you can use the FD calculator that is provided on the portal of Bajaj Finance.
Deposit in multiple FDs
Getting the highest FD rates should not be your only priority while choosing an FD scheme. You must also ensure sufficient liquidity by investing in multiple FDs.
The multi-deposit feature that comes along with Bajaj Finance FD lets you ladder your FDs smartly. This is possible as you can invest in FDs of different tenors and types simultaneously by dividing your corpus into smaller deposits. Moreover, you get a flexible tenor ranging from 12 to 60 months while selecting the lock-in periods for your deposits and you can deposit in all the FDs at once through a single cheque.
Benefits for senior citizens
Everyone can benefit from the periodic interest payouts offered by Bajaj Finance non-cumulative FDs. However, senior citizens stand a chance of earning higher interest payouts and returns as Bajaj Finance FD gives them a 0.25% higher FD rate.
By investing online, you can still grab an additional FD interest rate of 0.10%. The investment procedure has been made completely online as you can now verify your documents and make the payment for the deposit online. This makes it a much convenient and popular option for millennials who dread stepping outside for investment purposes.
A safe investment
Bajaj Finance FD not only proves to be an instrument that drives your savings quickly but is also a safe vehicle for your investments. This can be examined by checking the high credit ratings that this FD scheme has received from CRISIL and ICRA, the premier credit rating organizations in India.
