Investing in Fixed Deposits? You Need to Know these Facts

As an investor who doesn’t like to take much risk, you can consider FD as one of the most convenient and profitable investment schemes. It is a great option if you want to attain your investment goals and accumulate surplus funds till retirement. However, it does not mean that you can invest in fixed deposit plans without doing any research. Here are some facts that are essential to utilize fixed deposits as a key instrument to grow your savings:

Corporate FDs offer higher returns

The lower bank FD rates due to repo rate cuts and economic instability have become a reason to worry for the FD investors. However, corporate FDs are still providing a high FD interest rate.

Bajaj Finance FD generates considerable returns at an interest rate of up to 6.75%. The impact of higher returns will be more if you invest in cumulative FDs as it compounds your interest earnings. Also, a longer tenor will help to earn a higher interest income. 

If you invest Rs. 40,00,000 in a 3-year fixed deposit, the term deposit interest rates offered by banks can be up to 5%. The postal FDs will offer an interest rate of up to 5.5% for the same tenor. Compare the returns offered by these FD plans against Bajaj Finance FD as the calculated returns are given below:

Fixed Deposit PlanAmountTenorInterest RateInterest Capitalized at maturity Maturity Amount
Bajaj Finance FDRs. 40,00,0003 years 6.75%Rs. 8,65,905Rs. 48,65,905
Post Office FDRs. 40,00,0003 years 5.5%Rs. 7,12,273Rs. 47,12,273
Bank FDRs. 40,00,0003 years 5%Rs. 6,43, 018Rs. 46,43, 018

Many FD providers offer a loan against FDs

It is a fact that several FD providers give loans against FDs. Bajaj Finance FD gives collateral-free loans that cover up to 75% of the deposits. It means that no security needs to be pledged for obtaining this loan. These loans can help you meet ends during a crunch situation or medical emergency.

Investing in several fixed deposits

The option of opening several FD accounts is possible if you invest in Bajaj Finance FD. You can use this feature to enhance your liquidity options by laddering your deposits wisely. The deposit amount and tenor can be unique for each FD account and you may even prefer to invest in both FD types at once.

A single cheque needs to be submitted against all the fixed deposit payments. By ensuring higher liquidity, you will also give yourself the option of investing your corpus at a higher FD interest rate when the FD rates rise in the future. Therefore, it is both a convenient and profitable feature. A tenor with a range from 12 to 60 months can be picked as Bajaj Finance FD allows its investors to customize the lock-in period as per their investment preferences.

A 0.10% higher FD rate can be obtained by investing from an online FD form and senior citizens qualify for a 0.25% excess interest rate. Investing in this FD scheme will ensure that you earn stable returns. Confirm this from the high MAAA/stable and FAAA/stable credit ratings given by ICRA and CRISIL respectively.

Investing in fixed deposits would be a smart choice these days but you should also be aware of certain facts. For example, corporate FDs provide a higher rate of interest and you can invest in multiple fixed deposit plans. Bajaj Finance FD, a corporate FD scheme offers interest rates of up to 6.75%. Along with higher returns, it also stabilizes your investment. The option of opening several FD accounts at once allows you to ladder your FD investment wisely.  Therefore, it is one of the better fixed deposit plans in our country.