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Comparing the interest rates is necessary before investing in any instrument. Similarly, you must also analyze investment tenor, FD provider’s reputation, credit ratings, etc. before investing. Bank fixed deposit rates will not help you earn higher returns as they range from 3.5 to 5% per annum. The higher FD rates are available only with corporate FDs like Bajaj Finance FD. Bajaj Finance FD allows you to earn interest at 7.05% and it also provides many lucrative investment options and features. Some of them are discussed below:
Higher returns than bank FDs
Bajaj Finance FD gives you the guarantee of earning a higher interest irrespective of the tenor you choose for your deposits. Suppose you invest Rs. 20,00,000 in a bank FD for 5 years and lock-in an equal amount in Bajaj Finance FD for the same tenor. The below table will give you insights regarding the better investment alternative in terms of returns and growth in investment:
| FD Plan | Amount | Tenor | Interest Rate | Interest | Maturity Amount | Growth in Investment (In %) |
|---|---|---|---|---|---|---|
| Bank FD | Rs. 20,00,000 | 5 years | 5% | Rs. 5,64,074 | Rs. 25,64,074 | 28.20% |
| Bajaj Finance FD | Rs. 20,00,000 | 5 years | 7.05% | Rs. 8,11,664 | Rs. 28,11,664 | 40.58% |
There is a huge gap between bank FDs and Bajaj Finance FDs when it comes to growth in investment and returns. The generated returns are much higher for senior citizens as a 0.25% higher interest rate is offered to them. Senior citizens can also benefit from the online investment process and multiple periodic interest payout options. Bajaj Finance FD allows you to withdraw the generated interest after every month, quarter, year, or six months according to your needs.
Earning higher returns with cumulative FDs
As cumulative FDs don’t give away the accumulated interest in yearly, monthly, quarterly, or six-monthly interest payouts, the interest earned during periodic interest calculation cycles gets included in the principal for the next cycle. This compounds the returns and your earnings get maximised especially if you have locked in your deposits for a longer tenor.
Investing in multiple FDs to tackle inflation rates
The interest rates and inflation rates tend to increase with time. Therefore, instead of earning at the same FD interest rate throughout the tenor, you can open FDs of varying tenors. The deposits with a shorter tenor will help you to reinvest the returns at a higher rate in the future. The multi-deposit feature offered by Bajaj Finance FD can be utilized to invest in multiple FDs with a single cheque. The tenor can be chosen as per your financial requirements and plans.
By selecting varying tenors and FD types, you can ladder your deposits that balance the change in the interest rate over a tenor. Also, it ensures ample liquidity opportunities when you are in a financial fix.
The fixed deposit interest calculator can be used to calculate the interest as per the investment tenor, amount, and fixed deposit type chosen by you. All these alternatives make Bajaj Finance FD one of the best options to maximise your FD returns.
Investing in a fixed deposit without knowing the FD rates, tenor range, and other investment options is a huge mistake. FD rates determine the returns whereas a flexible tenor and easy investment procedure enable you to invest in FDs conveniently. Bajaj Finance FD is offering interest rates of up to 6.80% and a higher FD rate of up to 7.05% is offered to senior citizens. Along with a high FD interest rate, it provides many other facilities and features that allow you to reap high returns. Moreover, it is also a reliable platform for investing as it is acknowledged by leading credit rating institutions such as CRISIL and ICRA.