The interest rate of a fixed deposit depends on the type of FD you are planning to book. Each financier offers a wide range of interest rates that vary as per tenor, FD plan, customer type, and some other factors. Apart from banks and finance companies, even the post office FD rate varies as per the tenor.
To check the FD interest rate offered by different financiers, you just have to check the FD calculator that might be available on their official website. This will also give you an idea about the kind of returns that you should expect after investing in different FD schemes.
However, comparing FD schemes by using an FD rate calculator is not enough if you want to maximize the FD returns. To ensure high returns you should also follow these tips:
Book company FDs
Company FDs have always have Return on Investment (ROI) on the higher side as compared to the bank FDs.
The recent economic turbulence, measures taken by RBI to induce liquidity in the market, and repo rate cuts have resulted in a reduction in bank FD rates. It has further widened the gap between bank and company FD rates. Your deposited amount can grow at an interest rate of 7.35% by investing in Bajaj Finance FD. This is almost 2% more than the interest rates offered by banks and this extra FD rate will maximize your gains by approximately 40% with a 5-year Bajaj Finance FD as shown in the table below:
|Customer type||Investment Amount||Interest rate||Interest amount||Growth in savings|
|Non Senior Citizen (investing offline)||Rs. 1,00,000||7.10%||Rs. 40,912||40.91%|
|Non Senior Citizen (investing online)||Rs. 1,00,000||7.20%||Rs. 41,571||41.57%|
|Senior citizen||Rs. 1,00,000||7.35%||Rs. 42,564||42.56%|
Ladder your investment across multiple FDs
You can invest in multiple FDs of shorter terms than going for a bulky fixed deposit. This will allow you to balance the fluctuations in FD interest rates over a longer period. The multi-deposit facility provided by Bajaj Finance FD allows you to invest in multiple fixed deposit plans and you can choose a tenor between 12 and 60 for each of the deposits.
Don’t withdraw FDs prematurely
Avoid withdrawing FDs prematurely as you will lose some of the interest gains that your deposited amount would have attracted till maturity. Banks deduct 1 to 2% of the interest gains additionally as a penalty for early withdrawal.
Laddering FDs will provide multiple liquidity points but if you are still short of funds then you can apply for a loan against your FD. Bajaj Finance FD enables you to use your FD as collateral and you get up to 75% of your fixed deposit value as a loan. This will ensure that your deposits continue to attract interest and you can repay the loan in easy instalments.
These were some ways through which you can ensure higher returns through a fixed deposit. However, you must also check whether the financier you are choosing has received high ratings from credit rating organizations.
For instance, Bajaj Finance FDs have received MAAA rating by ICRA and FAAA rating by CRISIL. These high ratings make these FDs a credible and safe bet for your investments.
There is no perfect answer if someone asks you what is the interest rate for fixed deposit as it depends on the financier and the type of FD (cumulative or non-cumulative) you are planning to book. To know the difference in the interest rates you can use the FD calculators that also help you to calculate the returns of an FD. However, this is not enough to maximize the returns and therefore, investing in a high paying company FD can prove to be a good choice. Bajaj Finance FD offers interest rates up to 7.35% and also enables you to ladder deposits by utilizing its multi-deposit facility. Moreover, you can also avoid breaking an FD by availing a loan against it.