Earn interest up to 8.10% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

  • Overview
  • Fixed Deposit Calculator
  • Interest Rates and Charges

Fixed deposits are one of the most secure forms of investing and saving. Here, you will receive a decided FD interest rate payable by a bank or Non-Banking Financial Company (NBFC)  at preferred time intervals. Fixed deposits, hence, are a very easy way to utilise spare funds in a productive and profitable manner since the returns earned through FDs are safe and guaranteed until the date of maturity. 

 

However, before you book your FD, it is essential for you to understand the crux of FD rates, the factors that affect interest on FD, CRISIL and ICRA ratings and taxation on FD interest rates.

Our Partners - FD Interest Rates

Partners

Non Senior Citizen Interest Rates

Senior Citizen Interest Rates

Bajaj Finance FD

6.93% to 7.85%

7.16% to 8.10%

PNB Housing Finance FD

6.57% to 7.55%

6.82% to 7.80%

Mahindra Finance FD

6.30% to 7.75%

6.55% to 8.00%

The values mentioned above are subject to change as per alterations made in the policies and regulations laid by the respective financial organisations. 

Factors That Affect Fixed Deposit Interest Rates

Three major factors affect your FD interest rate, namely, the tenor, the deposit amount and the FD type. Let’s understand how exactly these factors can make a difference.

  • Tenor

The deposit tenor impacts the rate of interest on FD greatly. Your FD interest rate could be determined by how long you decide to lock your money in a fixed deposit. Certain banks and NBFCs could offer higher interest rates for certain tenors, making room for larger returns by the time the tenor ends. 

  • Amount

The deposit amount refers to the amount you initially invest in and save through a fixed deposit upon which an FD interest rate is applied. These factors together build to determine the total maturity amount you are set to receive at the end of the tenor. Hence, the higher the deposit amount, the higher will be the interest amount added as per the decided FD interest and higher will be the returns. 

  • Categories

Fixed deposits are categorised according to the payout duration of the FD. NBFCs and banks can pay you the interest returns as per the payout duration. You can receive your FD interest rate returns on a monthly, quarterly, half-yearly and annual basis which are called non-cumulative FDs. Or, you could  also get your returns at the end of the tenor of a cumulative FD. The interest rates for both vary from one another and hence, your preference of the payout can impact your FD interest rates greatly. 

Rating List for Corporate Fixed Deposits - CRISIL & ICRA 

CRISIL (Credit Rating Information Services of India Limited) is an agency that helps financial markets work transparently by providing honest credit ratings for structured finance, corporate credit scale, short-term scale, long-term scale and fixed deposit scale. For fixed deposits, this is decided on the basis of various factors such as the credibility of the NBFC, the safety of capital, the FD interest rates offered, etc. 

 

The highest rating is AAA, signifying brilliant safety while the lowest for fixed deposits is NM which tells you that putting your savings into a fixed deposit with a particular NBFC will not be financially meaningful.

CRISIL Rating

Safety Standard

FAAA

Top-notch Safety

FAA

High Safety

FA

Decent Safety

FB

Low Safety

FC

High Risk

FD

Default

NM

Not Meaningful

ICRA (Investment Information and Credit Rating Agency of India Limited) is another such rating agency which provides you with a clear vision of whether their potential investments and saving options could be profitable as per credit quality, interest on FD, safety of your deposit, etc., saving many from facing financial losses. 

 

The highest rating is an MAAA rating which tells you that saving through an FD in that particular bank or NBFC would bring them the best credit quality. The MD rating, on the contrary, signifies that the credit quality of that particular financial institution is of the lowest standard and thus, choosing the financial safeguard of that institution would invite losses. 

ICRA Rating

Quality Standard

MAAA

Best Credit Quality

MAA

Good Credit Quality

MA

Decent Credit Quality

MB

Low Credit Quality

MC

Prone to Risk

MD

Lowest Credit Quality

Taxation on Fixed Deposit Interest 

Fixed deposits in India are entirely taxable since, according to the Income Tax Act of 1961, the returns earned through FD interest rates are considered as alternate income-earning sources. It is added to your gross yearly income and hence, taxes are calculated.  

 

When the annual interest is credited to your FD account, the bank or NBFC will deduct the TDS liable from the interest amount that was earned. Once you reach the point of earning ₹40,000 in returns, you are liable to pay 10% - 20% in taxes. Senior citizens have special provisions that stretch the limit amount to ₹50,000 after which 10% - 20% will be levied on the annual returns. 

 

If your total annual income is less than ₹2,50,000, including the FD returns, you are not liable to pay any taxes and there will be no deductions to your interest amount returns. 

 

To help understand better about the return on investment that you would earn from different tenors, you can use the fixed deposit calculator. This online tool performs complex calculations instantly for multiple tenors, interest rates, and investment amounts, thus saving effort and time. 

FAQs About FD Interest Rates

  • ✔️Which type of FD offers higher interest rates?

    Fixed deposits for senior citizens generally offer a higher FD interest rate in comparison to fixed deposits for non-senior citizens. A special increase of 0.25% - 0.50% is given to senior citizens on their FD interest rates. Additionally, higher interest return limits pertaining to TDS (Tax Deducted at Source) are available for senior citizens. 

  • ✔️Is there any tax obligation on the interest earned on fixed deposits?

    Yes, there can be tax obligations on the interest returns earned through fixed deposits. Since fixed deposit returns earned through FD interest rates are alternate sources of income, the Income Tax Act of 1961 mandates a taxation levy of 10% to 20% on all FD returns above ₹40,000 (₹50,000 for senior citizens). Your FD interest can be excused from tax obligations only if your annual income is below ₹2,50,000, including your fixed deposit returns. 

  • ✔️How can you maximise FD returns?

    It is most crucial to pick the right fixed deposit to save your vital funds with. Here, you have to consider the tenor, the FD interest rate and the bank or NBFC you choose. You must compare various FD rates offered by banks and NBFCs to pick the one with highest interest returns. Additionally, from the perspective of wealth generation, a cumulative fixed deposit could be the better option as compared to the non-cumulative payout method. The ladder investment theory could be helpful here since investing in various fixed deposits that have different maturity dates can promise a steady influx of interest returns from various FDs.  

  • ✔️Will any special rates be applicable for a specific category of applicants?

    A higher FD interest rate can be offered on your fixed deposit returns if you are above the age of 60 years. Senior citizens receive special hikes of FD interest rates, which can range between 0.25% to 0.50%. Additionally, tax deduction limits are adjusted significantly for senior citizens. 

  • ✔️How often will interest on my FD be paid?

    You can choose to accumulate your FD interest returns by opting for a payout method called cumulative fixed deposits. Here, your bank or NBFC is liable to pay you your interest return amount at the very end of your deposit tenor. You can also opt for another method called non-cumulative fixed deposits wherein the interest returns will be given at a monthly, quarterly, half-yearly or yearly basis. 

  • ✔️What are the fixed deposit rates of interest for senior citizens?

    Senior citizens can get an additional 0.25% on their FD interest rate. For example, if your FD interest rate is 6.80%, the same fixed deposit can be offered to a senior citizen at the FD interest rate of 7.05%. The increase in FD interest rates for senior citizens can vary depending on the type of FD.