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

 A fixed deposit is a widely preferred investment option. It is an easy and safe investment tool where you just have to invest a lump sum amount of money for a specific tenor at a fixed interest rate. You will earn an interest income on the corpus that you will receive along with the invested money at the time of maturity. Let’s explore some important factors to note while starting an FD.

Fixed Deposit Interest Rates Offered

The fixed deposit interest rates vary from bank to bank. Some important aspects in deciding the fixed deposit rates are the tenor, size of investment and type of customer. The FD interest rates are higher if the tenor is higher. Senior citizens also get an additional interest rate that is around 0.25-0.50% higher than that offered to non-senior citizen investors. The fixed deposit interest rate is usually in the range of 3% to 7%; a bulk deposit might get you a higher interest rate than usual. Some banks or NBFCs like Bajaj Finance FD on Bajaj Markets also give an additional interest rate if you invest in an FD online.

Credibility of Financier

Before starting your fixed deposit, you should always make sure that the bank or NBFC has a higher credibility rating. This will ensure that your amount is safe and you will not face any trouble while receiving your interest income from the financier. Under the depositor insurance program by DICGC, you get insurance of up to ₹1 lakh on your FD amount. You can also invest your money in different banks or NBFCs instead of putting all your money in one bank FD.

Types of FDs You Want to Invest

There are mainly two types of fixed deposits, cumulative and non-cumulative. In a cumulative fixed deposit, interest earned at regular intervals is compounded over time. You receive the accumulated interest at the time of maturity of your FD. On the other hand, in a non-cumulative FD, you receive the interest income on periodic intervals as per your preference, like a monthly, quarterly, half-yearly, or yearly payout. A cumulative fixed deposit is ideal if you have long term goals whereas a non-cumulative FD is perfect for people like retirees or pensioners who want to receive regular interest income in periodic payout to meet their daily expenses.

Penalty for Premature Withdrawal of Fixed Deposit

Doing a premature withdrawal of FD attracts a penalty by the bank or NBFC. You will be usually penalised by getting a reduced interest rate of 0.5% to 2% depending on when the fixed deposit is broken. Some of the banks also have a facility where no penalty is levied provided you reinvest the amount in the same bank on other FD with a higher tenor. The charges of penalty for Premature Withdrawal of Fixed Deposit differ from bank to bank. Therefore, if you are anticipating any major expense where you might have to do premature withdrawal of FD, you should opt for a bank with low penalty charges.

Taxation /TDS on Fixed Deposit interest

The interest income on a fixed deposit is fully taxable under the applicable income tax slab. You will be liable to pay 10% of TDS on fixed deposit interest if the total interest income in a financial year is above ₹40,000. This limit is ₹50,000 for senior citizens. Furthermore, senior citizens can also avail a tax deduction of up to ₹50,000 in a financial year on all interest income under Section 80TTB.

Loan Against Fixed Deposit

This is one of the most important benefits of a fixed deposit. Almost all major banks and NBFCs allow taking a loan against fixed deposit. You can cater to any financial emergency by taking a loan against FD and thereby, avoid losing out on the interest income. An interest rate of around 0.5% to 2% is charged above the applicable interest rate on loan against FD. You can compare and opt for the best fixed deposit which has the lowest applicable interest rate for loan against fixed deposit.

Benefits of Investing in Bajaj Finance FD

Bajaj Finance FD offers one of the best interest rates available in the market that are as high as 8.10%. Senior citizens get an additional 0.25% interest rate. You can start your Bajaj Finance Fixed Deposit in a simple and hassle-free online application process.

 

With flexible payout options of monthly, quarterly, half-yearly, or yearly, you can achieve all your financial goals, be it short term or long term. Another important thing to note is that you do not need to worry about a large amount to invest as you can start a fixed deposit account in Bajaj Finance with a minimum deposit amount as low as ₹15,000 for a flexible tenor of 12 to 60 months. Therefore, Bajaj Finance FD can be an ideal fit for all your long term as well as short term financial goals.

FAQs

  • ✔️What is meant by a fixed deposit?

     A fixed deposit is an investment tool where you deposit a lump sum amount for a specific tenor at a predetermined interest rate. You get the invested amount along with earned interest income at the time of maturity.

  • ✔️Can I withdraw money from a fixed deposit before maturity?

     Yes, you can do Premature Withdrawal of Fixed Deposit. However, a penalty of 0.5% to 2% will be levied.

  • ✔️What is 7 days FD?

     7 days fixed deposit is where you invest your money in a fixed deposit for 7 days. It is also called a short term fixed deposit as the tenor is short.

  • ✔️Is bank FD simple or compound?

     The interest income of a bank FD for a tenor of 6 months is usually calculated using simple interest. Compounding of interest happens for a fixed deposit of more than 6 months.

  • ✔️What is the maturity value in FD?

     The maturity value of an FD is the sum of the principal amount that you invest and interest income at pre-decided interest rates.