Fixed Deposit (FD) is a saving cum tax-saving scheme offered by banks and NFBCs in India. Along with the security of your principal amount they offer assured returns. There is also flexibility to receive the rate of interests periodically, which makes them one of the most preferred types of investment plans in India. Investors who don’t want to take major risks prefer investing in Fixed Deposits. Retired investors who want to make sure that their retirement savings are safe, generally favor investing in this scheme
When investors plan to invest their money in a fixed deposit scheme, it is partly due to attractive interest rates.
Before opting any fixed deposit plan, people should do brief research regarding the scheme; interest rate offered and so on. Few of the most important points are listed below. These points can be considered to earn the most out of investing in a fixed deposit.
- Rate of Interest
Various banks and NBFCs offer multiple benefits and flexibility on the invested amount and the maturity period. Organizations decide the FD interest rates following the rules and policies directed by RBI. Rates of interest also vary depending on the type of depositor. For senior citizens, banks and NBFCs offer a higher FD interest rate.
- Maturity period
The tenor is a period that the customer chooses. Many financial institutions offer a wide range of options for the maturity period. The investor can opt for any suitable period from a minimum of 7 days to 5 years or 10 years; longer periods give more returns at the end of maturity.
- Company Credibility
Having correct information about the organization is also necessary to make sure that the amount invested will be safe. It is secure to have money invested with the organization which is credible.
- Tax Liabilities
The amount of interest earned from the investment is taxable. Although, an investor can claim for tax-deduction up to a certain amount by submitting form 15G/15H if they are receiving interest less than Rs 10,000 on their investments annually.
A customer is suggested to opt for the tenor that is convenient for them. Choosing the right maturity period is very important as a penalty is laid on pre-mature withdrawals. In the time of emergency, the investor can withdraw the invested amount before completion of tenor. But they might have to pay the penalty associated with it.
- Payment of Interests
For payments of the rate of interest, the investor can choose periodic pay-outs. But to earn higher returns, it is suggested to opt for a cumulative scheme at the end of the tenor or maturity period. The accrued amount is reinvested in the principal amount, which gives an extra financial benefit to the investor in cumulative plans.
- Ease of access
The investor should also consider how quickly they can access their account either online or by visiting the local branch of the company. Choose a firm which provides quick and secure online transactions as well as ease of availability where you can reach to the company advisor quickly for assistance.
Investments can be made in a credible company that offers a higher rate of interest. In India, many banks and NBFCs offer an interest rate ranging between 5.75% and 9.10%. Bajaj Finance is one of the highest FD interest rates offering firms. The investor can also check the total amount they will receive at the end of maturity period by using FD calculators. These calculators are very easy to use. Online FD calculators can be used to calculate the FD interest rate as well.
Why choose Bajaj Finance Fixed Deposit Plan?
- With the high-interest rate, the investor can grow their wealth while it is secured. The company offers very stable interest rates.
- Investors of the Fixed Deposit are also eligible for loans, presenting their FD as their asset.
- They are rated with ICRA and CRISIL’s FAAA (stable), assuring that the amount invested is never at risk.
- The plans are offered with guaranteed returns. Market variations do not affect interest rates.
- Flexibility is provided to the customer so that a customer can choose a suitable maturity period.
- For real-time assistance, the firm has above 200 Branches spread across India.
- Online account management facility is offered that makes it easier for customers to keep track of the FD account from anywhere.
- You can open multiple FDs at the same time with different tenors and ladder your investment to gain high investment returns as well as maintain liquidity from your investments.