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 deposits are instruments through which you earn interest by depositing a lump-sum amount with a financial institution for a selected tenor. The rate of interest you get on an FD is generally higher than what you earn on a savings deposit. 


Additionally, stable returns make this savings tool much safer than investing in market-linked options. If you have surplus funds that you want to invest securely and risk-freely, you can go with FDs offering high interest rates. 


Read on to learn about how to earn more from a fixed deposit and make the most of your savings.

Steps to Earn More from a Fixed Deposit

While a fixed deposit itself guarantees stable returns over its tenor, there are several ways in which you can earn more lucrative returns. Here are the steps on how you can get the maximum benefit from booking a fixed deposit:

  • Start your Fixed Deposit Online 

Opening a fixed deposit online allows you to browse multiple options and choose the issuer offering the highest interest rates. Higher interest rates translate into higher returns. 


Additionally, you can also see how the interest rates vary for different deposit amounts and tenors. By comparing all these options online, you can plan your investment to maximise your returns. 

  • Opt for Cumulative Fixed Deposits

While a non-cumulative fixed deposit ensures regular payouts, a cumulative fixed deposit ensures a bigger payout upon maturity. 


With a cumulative fixed deposit, you can build a bigger corpus since the interest earnings are reinvested along with your principal. In other words, you get the benefit of compounding, which increases your earnings.

  • Do Not Close your Fixed Deposit Prematurely 

In fixed deposits, your deposit amount stays with the financial institution for a fixed tenor. Withdrawing from your fixed deposit before the tenor ends can result in a penalty levied by the institution. 


This will deplete the amount you stand to earn at the end of the tenor of your fixed deposit. It will also prevent you from earning optimal returns on your deposit. To earn the most out of your deposit, stay locked-in for the tenor.

  • Start Fixed Deposits in your Parents’ Names

If your parents are senior citizens, you can start a fixed deposit in their name and earn higher interest rates. Most banks and NBFCs offer a higher rate to senior citizens as compared to regular citizens.


Booking a senior citizen FD on Bajaj Markets allows you to enjoy interest rate hikes of up to 0.25% as compared to base rates. 

  • Pick Tax-Saving Fixed Deposits

There are several kinds of fixed deposits available to depositors. While some allow for tax savings, others do not. So, thoroughly browse through the options available to you before you book a fixed deposit. 


Try to pick a fixed deposit that earns you the highest tax-saving benefits. However, remember that tax-saving FDs have a lock-in period of 5 years. Also, compare the returns of a tax-saver FD with a regular FD to secure the best returns. 

  • Select a High Rate of Interest

Different financial institutions offer fixed deposits at varied rates of interest depending on the tenor. So, when choosing a lender and preferable tenor, look for where you can earn higher returns. 


Sometimes, FD issuers have special tenors that come with a higher interest rate. Signing up for these can also help you augment your earnings. 


To determine your returns and compare them based on different FD interest rates, you can use an FD calculator. Based on the results, you can choose a lender that offers the best returns. 

  • Investment in Multiple Fixed Deposits

Parking your funds in more than one fixed deposit pays in different ways. The benefits of adopting the practice of laddering include the following:


  1. It lets you enjoy varying interest rates at different times 

  2. It acts as a safety net helping you diversify a risky portfolio focused on market-linked investments

  3. It helps in reducing your tax liabilities

  4. With varying maturity periods, you can enjoy better liquidity 



Fixed Deposits - Benefits

There are several benefits of FDs for account holders, such as the following.

  • Assured Returns: 

Unlike with instruments such as equity stocks, fixed deposits ensures stable returns. The returns on fixed deposits are guaranteed by the bank which you open your fixed deposit account. 

Even if the bank goes into liquidation or goes bankrupt, you can rest assured that you will receive your funds (subject to a limit of ₹5 Lakhs). This is due to the insurance cover offered by the Deposit Insurance and Credit Guarantee Corporation (DICGC).


To ensure you receive assured earnings on company FDs, simply check their credit ratings. With the highest rating by ICRA or CRISIL, these FDs are instruments you can rely on.

  • Suitability for Different Investment Horizons: 

You can easily achieve your short-, medium-, and long-term financial goals by booking a fixed deposit. This is because the tenor offered on FD accounts can range from 7 days to 10 years. 


Being a risk-free instrument, FDs help you meet varying goals, no matter the horizon. 

  • Option to Avail Loans: 

Many banks and lenders provide loans against fixed deposits you have with their institution or elsewhere as well. The fixed deposit acts as collateral for the sum that you borrow. This makes it easy for you to meet any emergency financial requirements. 

  • Encouragement to Save: 

While everybody knows that savings are essential, not everybody can save as much as they should. However, a fixed deposit ensures savings since a lump sum amount is dep an attractive interest rate for a fixed tenor. 


Moreover, many issuers even offer FDs on a periodic basis. Here, instead of a lump-sum amount, you deposit a smaller amount at predetermined intervals. 

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How to Apply for A Fixed Deposit

Starting a fixed deposit account on Bajaj Markets is easy and open to all Indian citizens residing in the country. In fact, a Hindu Undivided Family, sole proprietors, partnership firms, companies, clubs, societies, associations, and family trusts can also consider an FD. 


The only documents required include your latest photograph and KYC documents. While this sounds simple enough, opening the fixed deposit is easier still as it can be done in a few simple steps on Bajaj Markets. 


Here is how you can start your FD journey and secure your future today!

  • Step 1: Enter your mobile number and date of birth and verify the OTP to continue

  • Step 2: Fill in the deposit amount, the tenor, and the interest payout type, as well as your bank account details

  • Step 3: If you are an existing customer, just need the nominee details to continue

  • Step 4: If you are a new customer, complete your KYC by submitting your PAN or Aadhaar details or by simply uploading the documents required

  • Step 5: Make the payment for your initial deposit using internet banking/UPI; the latter is not available if you are depositing over ₹1 Lakh

  • Step 6: Once the payment is successful, your deposit will be created  


An acknowledgement for successfully opening the FD account will be sent to your mobile number and your email ID. After this, you can keep track of your returns from anywhere at any time via the issuer’s app. 


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. 

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FAQs on How to Earn More Money from Fixed Deposit

Most banks and NBFCs offer a higher interest rate of up to 0.50% on FDs for senior citizens.

The tenor of an FD generally ranges between 7 days to 10 years. 

As the interest is added to your principal amount in a cumulative FD, you can earn higher returns on it as compared to a non-cumulative FD. In simpler words, the interest gets compounded when you choose a cumulative FD.

If you withdraw your deposits prematurely from your FD, you will not be able to earn the maximum level of interest. Moreover, you may also have to pay a penalty charge to the issuing bank or NBFC.

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