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How Fixed Deposit (FD) Interest Rates Keeps Your Earning

Barjunaid Cadir

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How Fixed Deposit (FD) Interest Rates Keeps Your Earning

Investments can help you grow your savings easily, by putting your money to work. However, recent economic changes and swinging stock indices have led investors to consider investing in fixed deposits. Fixed deposits are offered by both – banks and NBFCs. The returns on your FD investment depend on the interest rates offered by the issuer.

This rate not only varies across issuers but also can differ basis the tenor you choose. While that is the micro level of interest rate variation, at the macro level, the issuer has to abide by economic policies, the RBI rate regulations, and other benchmarks to affix a fixed deposit interest rate.

Owing to the RBI repo rate cuts, FD interest was substantially hiked around the end of 2018. However, RBI recently cut its repo rates by 25 basis points, which may mean that financiers may look to lower their FD rates too. With the elections coming up now and the external benchmark system about to make an entry, investing in FDs now, is more important than ever. You should ideally make the best use of the available interest rates in order to claim the highest returns.

Here is a comparison chart that maps the interest rates you will earn on a key bank and NBFC FDs when you choose a tenor of 36 months for an investment amount less than Rs.1 crore.

 

Bajaj Finance 8.75% – 9.10%
Mahindra Finance 8.80% – 9.05%
KTDFC 8.50% – 8.75%
LIC Housing 8.25% – 8.50%
ICICI Home Finance 8.25% – 8.50%
Sundaram Finance 8.00% – 8.50%
South Indian Bank 7.60% – 8.10%
YES Bank 7.25% – 7.75%
HDFC Bank 7.40% – 7.90%
Saraswat Bank 7.35% – 7.60%
Kotak Mahindra Bank 7.10% – 7.60%
SBI Bank 6.80% – 7.30%

 

 Why should you invest in Bajaj Finance FDs?

With a lucrative interest rate on FD of up to 9.10%, Bajaj Finance Fixed Deposit offers you a slew of different benefits, listed below:

 

Best in the market FD interest rate

As an NBFC, Bajaj Finance subjects your investment to a high-interest environment. As a senior citizen, you can gain up to 9.10% and as a regular investor gain FD interest rates as high as 8.75%. You also get a 0.25% hike on renewal. Moreover, choosing to invest in a special tenor FD of 15 months gives you interest returns of up to 8.30% as an existing Bajaj group customer.

 

Assured return low-risk instrument

Awarded ICRA’s MAAA and CRISIL’s FAAA rating, Bajaj Finance FDs are highly secured options. You can trust them to offer you returns as and when promised. Moreover, you will never have to lose your principal to market volatilities as FDs are independent of market forces.

 

Flexible tenor and payout options

You have the complete freedom to choose the tenor of your FD as per your financial standing. Based on your goals and obligations, you can choose a tenor of 12 to 60 months for your Bajaj Finance FDs. Added to this, you can also decide the way in which you want to access the interest earnings on your investment.

You can choose a monthly, quarterly, bi-yearly or yearly interest payout option if you want to use the interest as regular income. On the contrary, if you want to access the interest on maturity then simply lock your FD for the tenor and gain from your earnings at the end of the term. This also helps you harness the power of compounding.

 

An asset you can bank on during an emergency

Urgent cash requirements come unannounced. To face such situations with equanimity, you can easily pledge your FD as collateral and avail a loan against it. Your high-value Bajaj Finance FD works as your security too, offering liquidity just when you need it. This allows you to avoid premature withdrawal of your investment allowing it to mature through its prescribed tenor and continue to earn interest.

It takes just Rs. 25,000 to get started with your Bajaj Finance FD investment. So, irrespective of your risk appetite, you can start it with any amount and use it to balance your portfolio and bring stability to your finances. Initiate an FD by forecasting your earnings. You can do this easily using the FD calculator. This way, you will know the maturity sum in advance and can accordingly ladder your investment to fulfill your goals.

Barjunaid Cadir is a Freelance Writer, Web Developer, SEO Content Manager, LinkedIn Specialist, Social Media Manager, and a University Researcher at Anadolu University in Eskisehir, Turkey.

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