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Earn interest up to 7.75% p.a. by investing in a Bajaj Finance Fixed Deposit | Stable Rating - CRISIL’s FAAA & ICRA’s MAAA

Choosing the right investment option can be perplexing. There are a myriad of financial instruments like mutual funds, bonds, stocks, etc., which claim to be better than the other. Therefore, identifying the right one for you becomes challenging. While it all depends on individual goals and preferences, FDs (fixed deposits) are widely accepted in India.

There are multiple reasons why people could be more inclined towards this investment product. It compounds your money and offers a sense of security. Let’s take a deep dive into FD meaning and benefits to understand why fixed deposits are favoured by most investors.

What is FD?

Fixed deposits are the safest way to make your money work and grow for you. With flexible tenors and guaranteed returns, FDs facilitate profitable and convenient investing. You deposit a lump-sum amount with a bank or NBFC for a fixed tenor at a fixed interest rate.

Fixed deposits come with a range of maturity periods from 7 days to 10 years. This flexibility enables you to achieve your short-term and long-term financial goals.

Types of Fixed Deposits

Standard Term Deposits

A standard term deposit is where you park your money for a fixed tenor and interest rate. With standard term deposits, the rate of interest is determined based on the tenor. The longer the maturity period, the higher the FD rate.

Senior Citizen Fixed Deposit

NBFCs and banks offer a higher rate of interest for senior citizens, i.e., investors over the age of 60. This interest can go up to 0.25% higher than the interest provided to non-senior citizens. Senior citizens also receive additional tax benefits. No TDS is levied if the interest amount doesn’t exceed ₹50,000. For individuals below the age of 60, the TDS deduction limit is ₹40,000.

Tax-Saving FD

Certain fixed deposits are eligible for tax deductions under Section 80C of the Income Tax Act. You can avail this benefit by opting for 5-year FD schemes with a principal amount of ₹1,50,000 per annum.

Fixed Deposits for NRIs

Non-resident Indians can invest in FD with their NRO account. It enables NRIs, Overseas Citizens of India, and Persons of Indian Origin to invest in Indian rupees at higher interest rates. At Finserv MARKETS, we offer attractive interest rates of up to 7.75%. However, you must note that NRIs, OCIs, and PIOs cannot seek loans against their FD.

Benefits of FDs

Now that we know the different types of FDs, let’s explore the FD benefits.

Assured Return

Unlike other investment options, market volatility has zero influence on FDs. With a fixed deposit, you receive an assured rate of return on investment, and therefore there is no risk of losing your money.

The Magic of Compounding

With cumulative fixed deposits, you can avail the benefits of compound interest, which means faster multiplication of your funds. It offers returns on the principal amount and the interest accumulated every month, quarter, or year.

Low Minimum Investment

Want to start investing but do not have a colossal amount? No problem! At Finserv MARKETS, we enable you to start investing in FDs with a minimum amount of ₹15,000.

Easy Process

FDs are one of the most convenient investment options. You can choose to open a fixed deposit account via an online or offline process. We enable you to apply for Bajaj Finance FD online and circumvent the lengthy paperwork and unending waiting lines.

Competitive Interest Rates

With Bajaj Finance FD, you get the best interest rates in India. We offer additional 0.25% interest rate to senior citizens.

Taxation on FDs

Though certain FDs are eligible for income tax deductions, income earned on your fixed deposit is taxable. Banks and NBFCs are liable to deduct TDS on FD interest income if it crosses ₹40,000 for non-senior citizens and ₹50,000 for senior citizens. You must note that financial institutions deduct TDS at the end of each year and not at the time of maturity.

Let’s understand this with an example: Reema, a 50-year-old woman, invests₹50,00,000 in a cumulative FD scheme for 5 years. The total interest earned at the time of maturity is ₹16,25,000. As she earns over ₹40,000 p.a. as interest on FD, her bank deducts a 10% TDS on her term deposit.

Why Invest in Bajaj Finance FD

Bajaj Finance FD propels your savings to grow at a faster pace with high-interest rates. Thanks to the FAAA ratings from CRISIL and MAAA ratings from ICRA, Bajaj Finance FD is trusted by over 2,35,000 happy customers. These ratings highlight our creditworthiness in the market.

From FD for NRI to senior citizen FD, we’ve got a fixed deposit scheme for everyone. Calculate the returns receivable with our FD calculator and make smart investments.

Bajaj Finance Fixed Deposit Rates

Along with offering a secure investment platform, we also provide high rates of interest and flexible tenors. Let’s explore the FD interest rates offered by Bajaj Finance FD.

Fixed Deposit Annualized rate of interest for non-senior citizens Valid for deposits up to Rs.5 crore(w. e. f. 1st July, 2022)

Period

Minimum deposit

(in Rs.)

Cumulative At Maturity (% p.a.)

Non-Cumulative

Monthly 

(% p.a.)

Quarterly 

(% p.a.)

Half Yearly 

(% p.a.)

Annual 

(% p.a.)

12 – 23 months

15,000

6.2%

6.03%

6.06%

6.11%

6.2%

24 – 35 months

6.95%

6.74%

6.78%

6.83%

6.95%

36 - 60 months

7.4%

7.16%

7.2%

7.27%

7.4%

Special Tenure FD Rates for Non-Senior Citizens

Period

Minimum deposit

(in Rs.)

Cumulative At Maturity (% p.a.)

Non-Cumulative

Monthly 

(% p.a.)

Quarterly 

(% p.a.)

Half Yearly 

(% p.a.)

Annual 

(% p.a.)

15 months

15,000

6.4%

6.22%

6.25%

6.3%

6.4%

18 months

6.5%

6.31%

6.35%

6.4%

6.5%

22 months

6.65%

6.46%

6.49%

6.54%

6.65%

30 months

7.05%

6.83%

6.87%

6.93%

7.05%

33 months

7.15% 6.93% 6.97% 7.03% 7.15%

44 months

7.5%

7.25%

7.3%

7.36%

7.5%

 

 

 

 

FAQs

✔️Can a policyholder close a fixed deposit before maturity?

A fixed deposit can be closed before maturity. This is known as premature withdrawal. In such cases, interest will be calculated as per the duration of the deposit amount. You must, however, remember that certain financial institutions can levy a penalty on premature withdrawal.

✔️Can you open a joint fixed deposit?

You can choose to open your fixed deposit jointly with someone like your parents, siblings, or spouse. In a joint fixed deposit, the first account holder has to pay the TDS. Similarly, the interest is also paid to the primary holder’s account.

✔️Can you avail a loan against fixed deposits?

In the case of a financial emergency, you can easily take a loan against your fixed deposit. As your FD amount acts as the collateral, these loans are easy and hassle-free to avail.

✔️What is the minimum amount to be invested in a fixed deposit?

There is no mandated amount for minimum investment. Rather, the minimum amount varies from one financial institution to another. For example, in the case of Fixed Deposit on Finserv MARKETS, you can invest with a minimum amount of Rs 15,000 without waiting for a larger corpus.

✔️What is fixed deposit with example?

Fixed deposit is one of the most popular financial investment instruments offered by many banks & NBFCs across India which allows investors to deposit money and get a higher rate of interest than a normal savings account. You can use the Bajaj Finance Fixed Deposit Calculator to check the growth of your FD. The calculator follows the below formula:

M = P + (P x r x t/100), where –

  • M is the maturity amount
  • P is the principal amount that you deposit
  • r is the rate of interest per annum
  • t is the tenure in years

For example, if you deposit a sum of Rs. 1,00,000 for 4 years at 9% interest, your FD would look like this: M = 1,00,000 + ((1,00,000 * 9 * 4)/100) = 1,36,000

✔️Is a fixed deposit an asset or a liability?

Fixed Deposit is an asset. It may be classified under the group of Long Term Investments which can be turned to cash in a short time!

✔️Can you lose money in fixed deposit?

The best part is that FDs are an extremely safe choice with no risk related to market fluctuations. However, during times of inflation, FD returns at times can be around the same as inflation or even lower than inflation rates leading to wealth erosion for the investor.