Earn interest up to 7.75% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

What is an FD?

A fixed deposit, also popularly known as a term deposit, allows you to earn risk-free interest by depositing an amount for a predefined tenor. There are multiple types of fixed or term deposits available at almost all major banks and NBFCs in India with tenors ranging from 7 days to 20 years. A fixed deposit is considered to be one of the best fits for investors who want to safely grow their money.

 

The moment you invest in an FD, it gets locked; the investor can withdraw the principal only upon maturity. However, most banks or financial institutions allow premature withdrawal for a penalty. For the purpose of investment, there are varied types of fixed deposit accounts in the market and users can pick one that best fits their investment.

Different Types of Fixed Deposit Accounts

Depending on the needs of the investor, the following types of fixed deposit accounts exist:

Sr No

Type

Description

1

 Bank Fixed Deposits

These are usually offered by banks to customers who have an existing savings account. While some bank deposits provide additional features like deposit insurance of up to ₹5 lakh on opening fixed deposit accounts, their rates of interest are usually lower than those provided by non-banking finance companies (NBFCs).

2

Company Deposits

Company FDs or Corporate FDs are offered by NBFCs with higher interest rates. You must, however, ensure that investments are only made in companies with an excellent credit rating. On Bajaj MARKETS, you can select fixed deposits of Bajaj Finance, which have good ratings from leading analytical companies like CRISIL and ICRA. Bajaj Finance Fixed Deposits have the highest stability rating of FAAA/stable by CRISIL and MAAA/stable by ICRA. In 2019, Bajaj Finance was assigned a long-term rating of ‘BBB-/Stable’ and a short-term rating of ‘A-3’ by S&P Global Ratings.

3

Cumulative fixed deposits

Cumulative FDs are a type of FDs wherein the earned interest is only available to you on maturity, i.e. you will not receive the interest amount on regular intervals. These are best suited for investors who do not need a regular source of income from their FD, but would want more returns on their investment. You can invest in a cumulative FD with a tenor ranging from 12 months to 60 months.

4

Non-cumulative fixed deposits

Non-cumulative FDs are a type of FDs where the financial institution pays you the interest earned on the principal amount at regular intervals. On Bajaj MARKETS, you can choose the frequency of the interest payout at the time of application, which can be monthly, quarterly, half-yearly or annually. Here, the tenor for the FD ranges between 12 and 60 months. You must, however, note that the maturity amount decreases if the interest payout frequency is higher. But, the advantage of this FD is that you can receive regular interest payouts to meet your regular expenses. These FDs are best-suited for people like pensioners or retirees who need a regular income from their FD investment.

5

Tax-saving fixed deposits

These FDs have a fixed tenor of 5 years. The key benefit of this type of FD is that you can claim a tax deduction of up to ₹1.5 lakh in a given assessment period under Section 80C of the Income Tax Act, 1961. You must, however, remember that this type of FD comes with a lock-in period, and you cannot break the deposit or withdraw it prematurely.

6

Senior citizen fixed deposits

Senior Citizen Fixed Deposits are a special type of fixed deposit for people above 60 years of age. The key highlight of the scheme is that it provides a higher rate of interest as compared to other FDs, thus allowing the elderly to meet a wide range of financial requirements. For example, on Bajaj MARKETS, senior citizens can invest in the Bajaj Finance Fixed Deposits and receive an additional 0.25% interest rate.

7

NRI Fixed Deposits

NRI FD is not only safe from market volatility, but also provides a higher rate of interest as compared to the interest from traditional savings accounts. For instance, Bajaj Finance Fixed Deposit for NRIs, available on Bajaj MARKETS, provides a slew of benefits like high returns along with flexible tenors ranging from 12 months to 60 months. It also provides multi-deposit and easy renewal facilities. As an NRI, you can invest in this FD from your NRO account. People of Indian origin (PIO) and Overseas Citizen of India (OCI) can also invest in this FD.

8

Standard/Regular fixed deposits:

This is the most common of all FDs. Being a regular and uncomplicated form of investment; you simply have to invest your money for a fixed tenor, for which, a predetermined rate of interest will be offered. Usually, you can deposit your amount in a tenor ranging from one year to 10 years. On Bajaj MARKETS, you can invest as a new customer in the Bajaj Finance FD for cumulative scheme tenors ranging from 12 to 60 months. The key highlights of a standard fixed deposit are the ease and convenience of investment, security of the principal amount, and high interest rate.

How Does an FD Account Work?

In a fixed deposit, you simply lock in your desired amount for a certain tenor. You then earn an interest income as per the predetermined rate of interest. This interest income is added to your principal amount in a cumulative fixed deposit and your money grows effectively. You get the invested amount along with the promised interest income on the maturity of the fixed deposit.

 

You can choose to receive this interest income either on maturity or on periodical payout options of monthly, quarterly, half-yearly or yearly. You can start a fixed deposit account where you have your savings account and also where you do not have one. If you do not have a savings account, you will have to go through the KYC process. NRIs (Non-resident Indians) can also start fixed deposit accounts in India through NRE (Non-resident External) and NRO (Non-resident Ordinary) FDs.

Benefits of Fixed Deposit Account

The major reason why people opt for a fixed deposit is its guaranteed returns. The returns are free from market risks and this is what makes it an ideal option for those who want assured returns. You can read more about the benefits of fixed deposits on Bajaj Markets website.

Eligibility Criteria for Fixed Deposit Investment

To start different types of FD, you will have to make sure you fit the eligibility criteria for the same. Mentioned below is the eligibility criteria required for different types of fixed deposit account.

 

  • Individuals or joint investors

  • Indian resident

  • Senior citizens

  • Companies

  • Partnership firms

  • NRI

  • Minors

  • Societies or clubs

  • Sole proprietorship

How to Select the Best FD Scheme

Below are a few factors that can be considered while selecting an FD to avail higher returns. However, choosing an FD should entirely depend on one's requirements and goals.

  • Choose trusted NBFCs over Bank FDs

  • Compare RoI and maturity amount using FD calculator

  • If you don’t need periodic income, go for cumulative options, as they give higher returns.

  • Choose longer duration as they give you higher returns

Documents Required for Opening a Fixed Deposit Account

To start different types of fixed deposit, you will have to go through the application process. If you are an existing customer, you do not have to submit any additional documents. On the other hand, a new customer will require the following set of documents to start a fixed deposit account.

 

Identity Proof: Driving licence, photo ration card, senior citizen ID card, voter ID, PAN card, Aadhaar card, etc.

 

Address Proof: Bank statement with cheque, the post office issued identification card or certificate, utility bills, etc.

Fixed Deposit Application Form

Mentioned below are two ways to get the application form required for a fixed deposit account.

 

  • To get the fixed deposit application form in offline mode, you will need to visit the nearest branch of your desired bank or NBFC.

  • To get the fixed deposit application form in online mode, you will need to visit the official website of the bank or NBFC and download the form.

Who Should Invest in Fixed Deposit?

A fixed deposit becomes the perfect option for those who want a low-risk investment option with assured returns. It comes with great safety as an FD is unrelated to any market risks. If you want a steady flow of income you should surely opt for a fixed deposit. If you have a lump sum amount that you do not intend to use for some time, you can invest it in FD and let it grow. Retirees or people who are about to retire usually prefer different types of FD.

How to Open a Fixed Deposit?

You can start different types of fixed deposit accounts in two ways, either offline or online.

 

Online Method: To start a fixed deposit account online, you just have to use the net banking facility, fill the form and your FD will be started in no time. The deposit of funds can be done through net banking. Some banks or NBFCs also provide online KYC options, saving your time and effort.

 

Offline Method: To start a fixed deposit account in the offline method, you will have to visit the nearest branch of your bank or fixed deposit and fill the application form. You will then have to submit it to the concerned officials with the necessary documents. Once you deposit the amount, you will receive the FD receipt and your fixed deposit will be started.

Fixed Deposit Tax Benefits

Given below are the different tax benefits offered by a fixed deposit investment.

 

  • A fixed deposit comes under the income tax deductions applicable under Section 80C of the IT Act

  • You can also avoid the TDS on interest income by submitting Form 15G/15H

  • Under Section 80TTB, senior citizens can claim a tax deduction of up to ₹50,000 in a financial year

  • Except for the case of minors, a nomination facility can also be availed

  • Senior citizens get an additional interest rate

  • Post office fixed deposit can be transferred from one branch to another

Why Invest in a Bajaj Finance FD?

By combining stability and excellent returns, a fixed deposit is a safe way to take control of your investments. Furthermore, you have the option of selecting from a variety of tenors to suit your needs. A Bajaj Finance Fixed Deposit offers a simple online approach for opening an FD account as well as guaranteed returns and consistent capital growth. Thus, you can effortlessly attain your financial objectives with the Bajaj Finance FD rates.

 

Bajaj MARKETS has Bajaj Finance FD rates for normal, online, and senior citizens. Choose the Bajaj Finance FD that best suits your needs and begin investing right away.

Steps to Open a Fixed Deposit Online

How to open a Fixed Deposit Online in 4 Simple Steps - Finserv MARKETS

FAQs

  • ✔️What are the different types of fixed deposits?

    There are various types of fixed deposits like bank fixed deposit, company deposit, cumulative fixed deposit, non-cumulative fixed deposit, tax-saving fixed deposit, senior citizen fixed deposit, NRI fixed deposit, regular fixed deposit, etc.

  • ✔️What is tenor in FD?

    Tenor is the time period for which your deposit amount is locked in against which you earn an interest income.

  • ✔️Is Post Office FD safe?

    A Post Office fixed deposit is one of the safest investment options as it comes with the sovereign guarantee of the government of India.

  • ✔️Is tenor and maturity the same?

    Tenor means the time period for which your amount is locked in an FD account whereas maturity describes the date at which the tenor gets over for a fixed deposit.

  • ✔️ Can I do FD of 1 crore?

    Yes, you can start a fixed deposit of ₹1 crore as usually, there is no upper limit of the deposit amount in a fixed deposit.

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