Jayant, a 28-year-old techie from Allahabad, was planning to invest in a fixed deposit scheme, given their security and assured rate of returns. He didn’t have the risk appetite to invest in other market-based instruments given the economic uncertainty but was also interested in seeing his corpus grow over time. Fixed deposits offer you attractive and assured returns, irrespective of market fluctuations. For instance, available on Finserv MARKETS, Bajaj Finance Fixed Deposits offer attractive FD interest rates of up to 8.35%, giving you the opportunity to multiply your savings. Bajaj Finance Fixed Deposits offer one of the highest interest rates in the market starting at 8 percent and going up to 8.35 percent. These fixed deposits are rated high on safety and stability and have ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating, assuring investors of timely payouts.
However, before investing into any financial scheme it is imperative for the investor be aware of the factors that influence the rate and pace at which their corpus grows. So, like Dhruv, if you too are wondering what impacts the rate of your bank deposits, keep in mind the following factors:
Your corpus
The amount you invest in a fixed deposit scheme will always influence the interest rate that will be applied on your investment amount. However, that does not mean that you necessarily need to invest a huge sum of money in order to earn attractive interests. For instance, with Bajaj Finserv, can start investing from as low as Rs. 25,000/- and can earn up to 8.35 percent interest.
Tenure of your scheme
The tenure you choose at the time of signing up for the policy also impacts that rate of interest you earn on your corpus. Many lenders offer high FD interest rates of special durations. For example, Bajaj Finserv offers 0.05 percent higher interest rate on investment for more than two years.
Scheme renewal
You are likely to earn greater interests if you choose auto renewal facility provided by the lender of your fixed deposit scheme. Another important advantage of opting for an auto renewal is that you no longer need to worry about remembering the renewable dates.
Age of the policy holder
Another important determinant to note is the age of the policy holder which also affects the rate of interest that will be offered on the fixed deposit scheme. Senior citizens usually earn higher interest rates as compared to average investors. Economic conditions
The prevailing economic conditions in the country combined with the monetary and fiscal policy have a significant say on the interest rates applicable on fixed deposits.
Due to the uncertain economic conditions and upheaval in the finance sector lately, investors have been hesitant to invest the money in the equity market due to the high-risk perception and decreasing risk appetite. As a result, investors are looking for safer investment avenues which offer assured income and are free from market risks. This has led to a significant increase in the popularity of FD, and a large number of investors are investing their money in fixed deposits to enjoy the various benefits offered by this investment avenue.
According to the data provided by the apex bank, the Reserve Bank of India, fixed deposits outperformed both equities and debt funds last year. The numbers reveal that equities gave returns of around 2.7%, debt funds offered 5.5 -5.9% and fixed deposits yielded 6.25%.

Every investment carries an inherent risk, involving market fluctuations, economic conditions or any other unpredictability. These risks become greater when you invest in high-risk investment options like equities and stocks. However, fixed income instruments like fixed deposits sidestep market volatilities and offer guaranteed yield throughout the tenor.
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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