Highest Interest Rate on Fixed Deposits in India

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Fixed Deposits and why you should invest in them

Fixed deposit (FD) is a long-term financial instrument that helps investors to generate wealth over a period of time. It’s a traditional investment plan and perhaps the safest means to park your money. Fixed deposit rates in India vary between institutions. Since FDs are eligible for tax deductions under section 80C of the Income Tax Act, many investors prefer them for saving taxes. FDs offer the highest rate of interest compared to a savings account and recurring deposits.

An FD account can be opened with any bank or a non-banking financial company (NBFC) like Bajaj Finance. While the interest offered on an FD fluctuates depending on market trends, the rate remains constant all through the tenure once you have invested in the instrument. Investing in FDs is the perfect way to grow your financial assets sans the risks involved in market volatility. An FD, as the name suggest, can’t be withdrawn before maturity. However, in case of an emergency, you can liquidate it by paying a nominal penalty, i.e. a cut in the interest earnings. You can also go for a loan against FD by paying a marginal rate of interest, over and above the interest you are earning on your FD.

Features of FD

Here are some the key features of an FD

  • One-time investment: Opening an FD requires a lumpsum investment. If you have extra money that won’t be required in the near future, you can open an FD account and keep it safe. 
  • Interest payment: The interest is paid monthly, quarterly, half-yearly, or annually according to the option chosen by the investor. The frequency of payment can be decided as per your requirement. 
  • Flexibility: You can choose the tenor of the investment, the investment amount, and the interest payout frequency as per your discretion.

After you open an online FD account, you will get an electronic receipt which will mention that amount invested, the duration, rate of interest and the sum assured. You can earn an additional interest rate benefit of 0.10% when you invest online with Bajaj Finance FD.

Fixed deposit rates in India

The highest fixed deposit rates in India, up to 7.35%, are currently being offered by Bajaj Finance. This is much higher than average bank FD rates, which go up to 6.5%; and post office FD rates which go up to 6.7% currently. 

For different tenors, interest rates being offered by Bajaj Finance FD are given in the following table.

Annual Rate of Interest Valid for Deposits up to ₹5 Crore
Tenure (in Months)Minimum Deposit (₹)CumulativeNon-Cumulative
MonthlyQuarterlyHalf-YearlyAnnually
15-2325,0006.90%6.69%6.73%6.79%6.90%
24-357.00%6.79%6.82%6.88%7.00%
36-607.10%6.88%6.92%6.98%7.10%

Additional Rate Benefit:

  • If you are a senior citizen, you can earn an additional 0.25% interest rate over and above regular FD rates. 
  • If you invest online or if you go for an auto renewal of your FD, you can earn an additional 0.10%. 

How to open an FD account?

  • Online: Opening an FD account is easy these days. Any individual having an active internet banking account can open an FD by filling up an online form. Just key in all the necessary details and you KYC verification will be done via cKYC repository and the FD account will be opened in minutes.
  • Offline: You can also open an FD account offline by visiting the nearest Bajaj Finserv branch. The application form has to be filled up along with your proof of identity, residential proof, and photographs. Once the amount is deposited, the company will issue you a receipt.  

The FD Calculator

An FD calculator, as the name suggests, is a tool which helps you to calculate how much you will earn from your FD at the time of maturity. The FD calculator uses data like the investment amount, duration of the investment and the rate of interest applicable as per the tenor of the investment and the customer category.

The main aim of an FD is to keep your money safe for the longest period of time despite the downward movement of fixed deposit rates in India, in the wake of the current market volatility.

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