Earn interest up to 8.85% p.a. by investing in a Bajaj Finance Digital FD | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable) Invest Now

Fixed Deposits (FD) are one of the most popular savings instruments in India. They involve depositing money with a bank or NBFC for a specific period. During this time, your deposit grows at a fixed rate of return, offering you the choice of earning compounded interest.

 

FDs are a great way to save money and build wealth for long- and short-term needs. They bear little to no risk as your returns are predetermined and not affected by market fluctuations.

Our Partners
Corporate FD
Corporate FD
Bajaj Finance Ltd.
Interest Rate Up To
8.60%
Min. Deposit
₹15,000
Tax Saver FD
Bank FD
Bank FD
AU Small Finance Bank
Interest Rate Up To
8.50%
Min. Deposit
₹1,000
Limited Offer
Corporate FD
Corporate FD
Bajaj Finance Ltd.
Interest Rate Up to
8.85%
Min. Deposit
₹15,000
Corporate FD
Corporate FD
Mahindra Finance Ltd
Interest Rate Up To
8.30%
Min. Deposit
₹5,000
Bank FD
Bank FD
YES Bank
Interest Rate Up To
8.25%
Min. Deposit
₹10,000
Corporate FD
Corporate FD
PNB Housing Finance Ltd.
Interest Rate Up To
8.15%
Min. Deposit
₹10,000
Bank FD
Bank FD
Ujjivan Small Finance Bank
Interest Rate Up To
8.75%
Min. Deposit
₹1,000

Compare Fixed Deposit Interest Rates

Partner
sort list
Non-senior Citizens (p.a.)
sort list
Senior Citizens (p.a.)
sort list
Maximum Tenor
sort list
Minimum Amount
sort list
Image

Bajaj Finance

Up to 8.35%

Up to 8.60%

60 Months

₹15,000

Image

PNB Housing Finance

Up to 7.85%

Up to 8.15%

120 Months

₹10,000

Image

Mahindra Finance Ltd

Up to 8.05%

Up to 8.30%

60 Months

₹5,000

Image

AU Small Finance Bank

Up to 8.00%

Up to 8.50%

120 Months

₹1,000

Image

YES Bank

Up to 7.75%

Up to 8.25%

120 Months

₹10,000

Image

Ujjivan Small Finance Bank

Up to 8.25%

Up to 8.75%

120 Months

₹1,000

View More

Benefits of Fixed Deposits

Now that you know what an FD is and its many salient features, here are some advantages that you can enjoy when you opt for fixed deposits:

  • Enjoy the power of compounding by earning interest on interest in case of cumulative FDs

  • Liquidate your deposits when you require funds by making a premature withdrawal

  • Simple and straightforward process that can be initiated easily online

  • Avail an overdraft against your fixed deposit during unforeseen financial emergencies

  • Earn higher interest rates than a savings account

Fixed Deposit

Features of a Fixed Deposit

Stable Returns

The rate of return of a fixed deposit is determined at the time of investment and is unaffected by market fluctuations. Thus, you enjoy returns that are stable and secure.
Flexi Tenor

Flexible Tenors

FDs are generally offered for time horizons ranging from 7 days to 10 years. This makes them ideal for both short-term and long-term goals. You can choose your fixed deposit time period based on your financial objectives.
FD Interest

Attractive Interest Rates

Banks and NBFCs offer competitive rates for fixed deposits based on the repo rate of the RBI. Additionally, senior citizens can access <a href="https://www.bajajfinservmarkets.in/fixed-deposit/fd-interest-rates.html" target="_self">higher rates of return</a> from most issuers.
Deposit

Minimal Deposit Amount

 You can begin saving with FDs with a deposit amount as low as ₹1,000. This makes them one of the most accessible savings options.
Payput

Regular Payouts

Depending on your financial needs, you may choose to save with a non-cumulative fixed deposit. This allows you to get regular earnings for daily expenses or recurring financial commitments.
Renewal

Auto-Renewal

Many banks and <a href="https://www.bajajfinservmarkets.in/fixed-deposit/nbfc.html" target="_self">NBFCs</a> offer auto-renewal options for fixed deposits. This makes it extremely convenient for you to begin with and continue saving.
Tax Benefit

Tax Benefits

If your earnings from all fixed deposits with a bank are less than ₹40,000 in a year, you do not have to worry about TDS. This limit is set at ₹50,000 for senior citizens. <a href="https://www.bajajfinservmarkets.in/fixed-deposit/tax-saver-fd.html" target="_self">Investing in tax-saver FDs</a> also allows you to get tax deductions.

Fixed Deposits for Future Plans

Making use of FDs for all your short-term and long-term goals can be extremely beneficial for you. This is because you will not only have a corpus of funds readily available during a pinch, but you can also utilise your interest earnings for such purposes. Some of these scenarios may include: 

  • Downpayment for Purchasing a Home

You can use the funds in an FD to finance the purchase of your dream home. A large corpus of stored funds can be utilised to pay for the down payment, and even the monthly instalments for a home loan. 

  • Purchasing a Vehicle

If you have been planning to purchase a brand new bike or car for a while, then FDs can be highly beneficial for this purpose. With an FD, you will be able to save up sufficient funds to partially or fully pay the vehicle’s price

  • Wedding Expenses

While planning and arranging a wedding can be quite exciting, it could quickly rack-up expenses and it's best to have a financial back-up in such cases. Here, an FD can help meet such financial requirements easily to pay off related expenses. 

  • Higher Education 

With rising education costs and fees, it has become vital to ensure better financial preparedness for such expenses. Having the funds readily available with you via FDs can help serve this purpose like paying off student loans, etc.

  • Retirement

After having completed your working tenure, it's time to relax and enjoy your retirement. To finance your golden years, you can opt for an FD today. By the time you retire, your initial investment will have accrued substantial interest earnings. This amount can be used for various expenses, and also as an emergency fund for sudden hospitalisations. 

Read More

How to Invest in a Fixed Deposit?

Starting a fixed deposit is a financial decision that requires some forethought. Here’s how you can begin saving with an FD:

1. Compare Prevailing FD Rates

Before making any saving decision, compare the prevailing interest rates offered by major banks and NBFCs. This ensures you are well informed and are able to choose an FD that maximises your returns.

2. Choose Your Preferred Tenor

Broadly speaking, for short-term saving goals, you should consider choosing a short-term fixed deposit. However, if you are in it for the long haul, consider choosing long-term FDs. They are a great option to grow your wealth in a risk-free way. 

3. Select Preferred Payout Frequency

Depending on your financial needs and goals, choose between a cumulative and non-cumulative fixed deposit. When you save with a cumulative FD, your interest is compounded. Both the interest and the capital amount are paid out at maturity. However, with non-cumulative FDs, the interest earned on your deposit is paid out at regular intervals as specified by you.

4. Choose the Mode of Deposit

With the rise in online FDs, booking an FD has never been easier. On the Bajaj Markets website or app, you can compare multiple FD options and book an FD with ease.

 

Documents Required to Open an FD Account

While you are now clear about a fixed deposit, it is essential to know about FD documentation. You must submit your address and identity proof to open an FD account. Issuers use this information to ascertain your credibility.

 

The list of documents needed varies based on the category you fall into. Here are the documents required for opening a fixed deposit account if you are an individual:

Identity Proof Documents 

  • Voter ID 

  • PAN card

  • Driving licence 

  • Passport

  • Aadhaar card 

  • Ration card 

  • Latest passport size photograph 

  • Senior Citizen ID card

Address Proof Documents 

  • Electricity bill 

  • Passport

  • Telephone bill 

  • Bank statement with a cheque 

  • Post Office issued certificate or ID card

  • Other utility bills

Read More

Key Things to Consider When Choosing a Fixed Deposit

It is imperative that you factor in your finances, goals, and other factors while making any savings decision. Here are some important factors to consider before booking a fixed deposit.

  • Risk Appetite

    Your risk appetite is unique to you and your financial goals

  • Time Horizon

    Choose a tenor that suits your financial goals

  • Assured Returns

    Earn returns assured of at the time of booking

  • Financial Goals

    Choose between short-term & long-term FDs, cumulative & non-cumulative FDs

  • Safety of Capital

    Your investment is safe as it does not subject to market risk

Key Things

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

Read More

FAQs

What is a fixed deposit?

A fixed deposit is an investment and savings instrument wherein you deposit your money in a bank or NBFC for a specified period at a fixed interest rate. It is one of the safest investment options as fixed deposits are not affected by market fluctuations. So, your deposit amount will generate predetermined returns. 

How is interest in FD calculated?

All issuers calculate FD interest either through the simple interest or compounded interest formula. The calculation of both can be based on the type of FD plan chosen by you. Alternatively, you can make use of the provided FD interest calculator to determine your potential returns. 

What are the different types of FDs?

There are various types of FD accounts that you can open with most issuers. These include standard, senior citizen, tax-saving, corporate, special tenor, cumulative, non-cumulative, and flexi-rate, among others. 

Which type of FD is Best?

The FD type you choose mainly depends on your investment goals. If you are planning for a long-term investment, a cumulative FD with a longer tenor would be your best bet. Remember that the longer your investment timeline is, the higher will be your interest earnings. 

 

If you are a senior citizen looking to manage your post-retirement expenses, a non-cumulative FD is ideal. This way, you can get monthly payouts to manage your daily needs.

Which FD scheme is best at the Post Office?

Amongst many of the FDs offered by post offices, their Public Provident Fund (PPF) scheme is considered to be the best as it provides returns of up to 7.1% over a tenor of 15 years. This can either be paid as a lump sum deposit or over the course of 12 months. However, you will not be able to prematurely close the account or withdraw funds partially. 

Is a fixed deposit a good investment option?

A fixed deposit is a great investment option as it comes with negligible risk and offers assured returns. Other benefits of investing in an FD include tax benefits, loan against FDs, and a regular source of income. 

How to choose the right FD for you?

The right fixed deposit for you is one that fulfils all your financial needs and goals. There are a wide variety of FDs available in the market that cater to different types of investors.

How Do Fixed Deposits Work?

In a fixed deposit account, you will be able to park your funds over the duration of a tenor chosen by you and at a predetermined interest rate. You will be able to earn returns either on a monthly, quarterly or annually, as per the interest payout cycle. This is a relatively risk-free way of earning good returns over your idle savings. 

Is an FD Tax Free?

While regular FDs themselves are not free of tax on the interest earned, there is a special scheme called tax-saving FDs that can help serve this purpose. With this, you will be able to save up to ₹1.5 Lakhs under Section 80C of the Income Tax Act, 1961. 

What is the minimum and maximum amount that can be deposited in a fixed deposit?

The minimum and maximum deposit amount for a fixed deposit varies based on your fixed deposit account and your chosen issuer. Generally, the minimum deposit amount can be as low as ₹1,000 with no cap on the maximum deposit amount.

Who should invest in a fixed deposit?

An FD is a great investment vehicle for anyone looking for safe investment options that offer predictable and consistent returns. A senior citizen to a salaried professional, a business owner to a homemaker, anyone can invest in an FD.

What happens to an FD once it matures?

When your FD matures, you have two options - you can either choose to withdraw your investment or you may choose to renew your FD investment. 

Can you renew or withdraw a fixed deposit?

Yes, you can either choose to withdraw or renew your FD at maturity. 

Can I get monthly interest on an FD?

Yes, you can get a monthly interest payout on your FD by booking a non-cumulative fixed deposit. 

Is FD a Safe Investment Option?

Yes, FD is a safe investment option. However, when investing in an NBFC or company, check the credit ratings of the issuer. This will help you understand its safety and reliability. 

Can a minor book an FD in their name?

As a minor you cannot open your own FD account. A guardian will need to open the account in your name, and you will receive the amount when you turn 18 years old or when the FD matures.

Can I close or withdraw from an FD before 5 years?

Closure of your FD depends on the type of FD you have and the issuer. Generally, premature closure is permitted but may attract a penalty. However, it is prohibited before 5 years if you have a tax-saving FD.

What are the charges for premature withdrawal of FD?

The charges for premature withdrawal of an FD depend on the issuer’s policy. Generally, these go up to 1% of the FD amount.

Can FDs be Transferred To a Third Party?

No, you will not be able to transfer an FD to another person or entity before the maturity period, including a nominee, in any. You will only be able to transfer funds on receiving them in your bank account post-maturity.

Are fixed deposits good?

Yes, investing in a fixed deposit is a safe choice for risk-averse investors as it is unaffected by market fluctuations.

Invest In Other Products

Calculate FD
Home
active_tab
Loan Offer
active_tab
Download App
active_tab
Credit Score
active_tab