Long-Term FD

Fixed deposits are the traditional savings option for risk-averse investors. The rising interest rates, however, have attracted other investors looking to diversify their portfolios and earn better returns. Today, a majority of financial institutions offer FDs with lucrative terms. 

 

Among these is a flexible tenor, which affects whether an FD is classified as a long-mid or short-term instrument. These are mainly differentiated by tenor and serve varied financial goals. To learn more about long-term fixed deposits and how they differ, read on.

Long-term fixed deposits typically have a lengthy tenor that exceeds five years. Based on the issuer, the tenor for FDs for the long term can range from 7 days up to 10 years. Given this flexibility, long-term FDs are the preferred option to grow your corpus securely. 

 

In fact, FDs are ideal for certain long-term objectives. Some examples of these long-term goals include overseas education, weddings, retirement, real estate investments, etc. This is because the key benefit of long-term FDs is you enjoy the power of compounding interest. 

 

Here, the interest earned is reinvested periodically and continuously accrues interest throughout the tenor. Naturally, this leads to higher earnings if you stay invested for a longer duration.  

 

As such, rising long-term FD interest rates are an opportunity to grow your wealth steadily and securely. 

 

Interest rates play a significant role when measuring returns. Simply put, the higher your interest rate, the better your returns. As such, long-term fixed deposits are a smart choice as they allow you to invest at a high rate for an extended period of time. 

 

Moreover, senior citizen investors enjoy an even greater benefit, as they get higher long-term fixed deposit rates than those for regular investors. 

 

Given below is a table to give you an overview of the FDs and the rates offered on Bajaj Markets.

Disclaimer: The interest rates and investment amount mentioned above are subject to change at the issuer’s discretion.

Each tenor type has its benefits, and assessing these benefits is key. Here are the benefits you can enjoy with a long-term fixed deposit:

• Higher interest rates than short-term or mid-term deposits

• Senior citizens enjoy an even higher interest rate

• Better returns due to compounding interest for a longer window

• Secured savings tool with stable returns

• Can be pledged as security/collateral to avail of credit

Thanks to digitisation, investment processes have become easier and quicker. To invest in a fixed deposit for a long term online, all you have to do is follow these steps:

• Step 1: Visit Bajaj Markets

• Step 2: Navigate to the Fixed Deposit page via the ‘Investments’ drop-down menu

• Step 3: Click on ‘Invest Now

• Step 4: Enter your mobile number, date of birth, and OTP to verify your account

• Step 5: Enter the deposit amount, tenor, and type of interest payout

• Step 6: Provide your PAN/Aadhaar or upload the relevant documents to complete your KYC 

• Step 7: Complete the payment via UPI or NetBanking

 

You will receive an acknowledgement on your registered email and mobile number within 15 minutes confirming your deposit has been booked.

 

You can even invest offline by visiting the issuer’s branch and submitting a physical form. In the offline process, the issuer may ask you to invest through a cheque or other modes. Be sure to check if the investment mode is feasible before beginning the investment process.

 

On Bajaj Markets, you can access some of the best investment offers and also get access to tools like the fixed deposit calculator. Such provisions help you invest smartly and efficiently. 

 

Thanks to the power of compounding interest, the easiest way to maximise your returns with long-term FDs is to stay invested. This is because your interest earnings are continually reinvested based on the compounding frequency. 

 

So, your total earnings for a tenor of five years or more can be quite significant if you let the money grow undisturbed. Another way to maximise your returns is to opt for the cumulative payout. 

 

In doing so, you are likely to get a higher rate than if you were to opt to go with a non-cumulative FD. Moreover, you enjoy the full benefit of interest compounding.