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How the fixed deposits of the Indian middle-class help boost our economy

By Finserv MARKETS - Aug 12,2019
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How the fixed deposits of the Indian middle-class help boost our economy

Earn interest rates upto 7.05% p.a by Investing in Bajaj Finance Fixed Deposit

For years, investors have always parked their savings in either fixed deposit accounts or postal deposit schemes. This style of parking their savings usually indicated their inclination towards risk. It indicated that they prefer the safety and security of the initial investment amount over liquidity and returns from their investment. If their investment stays safe in a fixed deposit, it may not promise returns that beat the equity market or higher liquidity, fixed deposits are not tax-efficient investment options when compared to other forms of investments like ULIPs and PPF, but they have a charm of their own.

Due to ample immunity from market volatility and other security features, many middle-class Indians invest their savings into fixed deposits as part of their investment plans. As much as we take concerns surrounding the best investments to make during times of market volatility, liquidity concerns, and other investment plans, fixed deposits offered by banking and finance companies are one of the best investment options accessible to the middle-income Indians to park their savings. They allow investors to park their savings into a channel that assures them a predetermined return. In fact, fixed deposits, available online on Finserv MARKETS, also allow the flexibility to choose from cumulative and non-cumulative investment options. In the case of cumulative FDs, the interest is compounded every quarter or annually, and paid at the time of maturity. In a non-cumulative FD, interest is paid out periodically, as per your choice. The regular interest payouts can help you meet your daily expenses.

In a developing economy, financial inclusion plays a significant role in boosting the effect on deposit mobilisation and the investment options that are made available to the public – particularly over a long period of time. The safe option of fixed deposits will be preferred by even the most conservative of investors, thereby bringing the remote and untapped regions under the purview of such investment plans.

Identifying the drivers

With disposable incomes increasing, there is greater availability of funds with households today. A lot of them are looking for avenues to invest their savings for a future goal. With higher-earning capabilities, the amount that is invested in fixed deposits will also increase, enabling banks and financial institutions to now lend much more – even providing capital and loans to societies or communities that are under-represented. “Besides income and the interest rate, mobilisation of deposits seems to be affected by substitution effects emanating from small savings,” a bulletin by the Reserve Bank of India highlighted.

A lot of this change and shift in investment preferences have been driven by innovations in financial saving and investment plans that are available to investors like their availability online on portals like Finserv MARKETS.

A feature that works for such investment plans is providing both safety and returns. It is considered a major driver for investors to diversify their financial assets. The popularity of bank deposits underscores the income as its most important determinant, in both the short – and the long-run, followed by interest rates. This is why Finserv MARKETS offers competitive fixed deposit interest rates, starting from 8% which can go up to 8.95% and additional interest for senior citizens that are as high as 0.35%, over and above the existing rates.

Guaranteed high returns?

The recent Union Budget also signalled the government’s understanding of the economic situation that we’re currently in. In an attempt to promote investments in the country stated that yearly income below INR 5 lakhs will not be taxed. With a higher disposable income, people are gravitating towards narrowing down the best investments to put their money into and are more likely to invest in fixed deposits. Greater investments coming in would mean these providers now have a greater pool of capital to lend to other ventures – giving the corporate sector a facelift and enable businesses to distribute that.


While fixed deposits may not serve the purpose of liquidity, it carries a host of benefits. Issuers will allow you to take a loan against your FD if the need arises. Moreover, you can invest for a tenor of 12 to 60 months as per your goals and liquidity needs. Fixed deposit plans available on Finserv MARKETS come with a heavy safety net capital feature, making the investment even more popular. At Finserv MARKETS, investors can choose from Bajaj Allianz’s investment options and select the one that fits their criteria.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522