Earn interest up to 8.60% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable) Invest Now

Fixed Deposit

Fixed deposits are popular investment options for conservative investors who wish to preserve the capital and earn guaranteed returns thereon. If this sounds like your investor profile, then investing in an FD may be a suitable course of action for you in case you have a lump sum amount at your disposal. Over the period of investment, you will earn assured returns in the form of interest at a predetermined rate on the deposit amount. These assured returns can either be paid out to you periodically, or reinvested in your account and paid out at maturity. You can use a fixed deposit calculator to check how your investment will grow over time. 

Benefits of Fixed Deposit (FDs) in India

Here are some of the key benefits of FD:

  • Safety: FDs are one of the safest investment options as they are typically offered by banks and are backed by government insurance up to a certain limit, ensuring the return of your principal amount.

  • Guaranteed Returns: FDs offer fixed and guaranteed interest rates, providing predictability in earnings.

  • Liquidity: While FDs have a fixed tenure, they are relatively liquid compared to long-term investments like bonds or real estate. Many FDs allow premature withdrawals, although they may come with a penalty.Flexibility of Tenures: FDs typically offer a range of tenure options, from a few days to several years. This flexibility allows you to choose a tenure that aligns with your financial goals, whether short-term or long-term.

  • Senior Citizen Benefit: Many banks offer additional interest rates of up to 0.50% to senior citizens on FDs. This can be a significant advantage for retirees looking for secure investment options with better returns.

  • Overdraft Facility: Some banks provide the option to take a loan against your FD, known as an overdraft facility. This can be a helpful feature for individuals who need short-term funds but don't want to break their FD prematurely.

  • Automatic Renewal Facility: FDs often come with an automatic renewal option, where the principal and interest of the matured FD are reinvested for the same tenure or a different one. This ensures your money continues to earn interest without manual intervention.


Premature Withdrawal Facility: While FDs have a fixed tenure, they usually allow for premature withdrawal in case of urgent financial needs. However, withdrawing before the maturity date may result in a reduced interest rate or a penalty, depending on the bank's policies.

Features of Fixed Deposit (FD)

High Interest Rates

Fixed deposits from banks and NBFCs offer highly competitive interest rates that help you earn guaranteed yet lucrative returns on your investments. You can compare the interest rates from different fixed deposit accounts and choose an FD plan that gives you higher interest rates than the market average. Depending on the bank or NBFC you choose and the tenor of your investment, the rate of interest can be 7% or higher too.

Higher Rates for Senior Citizens

Another feature that counts among the benefits of FDs is the higher rate of interest that senior citizens receive on their deposits. The interest rate can be higher by 25 or 50 basis points. If you are above 60 years of age, you can take advantage of the higher  senior citizen FD rates and set up a regular source of income for your post-retirement life. 

Systematic Deposit Plan

Some fixed deposit plans also allow you to make periodic deposits into your FD account at regular intervals. You can choose from options like a monthly maturity plan, which offers you income from your deposit account each month, or a single maturity plan, where you receive your returns as a lump sum amount at maturity. 

Affordable Minimum Deposits

The minimum amount you can deposit in an FD can be as low as ₹5,000. Some fixed deposit accounts may even allow investments as low as ₹1,000. This means you can start your investment journey with fixed deposits even if you do not have a large sum saved up to start a lump sum deposit going up to several Lakhs of rupees. 

Hassle-Free Application Process

Today, most leading banks and NBFCs offer the option to open a fixed deposit account online. Even the paperwork is minimal, making the entire process of applying for the FD facility easy and effortless. You do not have to worry about going to the bank or the branch office of NBFCs to open your FD account anymore. 

Renewal of Your Fixed Deposit

Another common feature of fixed deposit accounts today is that many of them come with the option of auto renewal. This essentially means that at maturity, your fixed deposit investment will be automatically renewed for a period equal to the original investment tenor. So, you need not go through the trouble of withdrawing your funds and reinvesting them once more.


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


One of the key advantages of fixed deposits is that you get to earn guaranteed interest on the amount that you deposit. Other advantages of fixed deposits accounts include flexible investment tenors, flexible interest payout options and higher rates of interest for senior citizens. 

There are many lucrative fixed deposit accounts in India for investors who wish to eliminate market-linked risks. Their interest rate can range from 2.75% to 7.25% for general citizens and 3.25% to 7.75% for senior citizens. Hence, you should compare offers by different banks before selecting one.

Fixed deposits are suitable investment options for you if you want to preserve your capital and simultaneously earn assured returns on your investment. They help you grow your money without taking on any additional market-linked risk.

The Deposit Insurance and Credit Guarantee Corporation (DICGC) compensation cover is an insurance coverage that protects depositors in case of any risks to their corpus. The cover offered for each fixed deposit account is capped at ₹5 Lakhs (or the amount in the account, if that sum is lower than ₹5 Lakhs).

One of the many benefits of fixed deposit accounts is that you can avail a loan against your FD. The exact amount of loan that you can avail depends on the amount you have deposited. Most banks and NBFCs allow you to borrow anywhere from 60% to 90% of the amount in your fixed deposit account. 

Invest In Other Products

Calculate FD Interest
Loan Offer
Download App
Credit Score