Worried About FD Interest Rates? Here’s The Best Solution

Each month the economy bears the brunt of some a new problem -be it social, political or now even medical – with the break of corona virus COVID -19 epidemic, which has slowly pervaded all aspects of daily life and hit businesses and the economy at large. While we grapple with the larger implications of this epidemic, stock markets have been in a tizzy the world over and central banks have estimated the losses to mount in the coming months in businesses. In such a scenario, the final result would be a cut down in interest rate scenarios which would also affect investments. It would be best for you to take stock of your current investments which are interest rate dependent such as fixed deposits. You can look for the best FD interest rates across the spectrum which would be found only with company fixed deposits like Bajaj Finance FD.

Lock in High Interest Rates

With Bajaj Finance offering one of the best FD interest rates of 8.05% for a cumulative 5-year FD, you should lock it with an eye on future uncertainty when rates can be expected to go down further. 

Along with this you can expect the following benefits –

  1. Additional interest rate benefit – If you are a Bajaj employee or an existing customer, you can receive an additional 0.10% interest rate over the prevailing interest rate. For senior citizens, the interest rate is 8.05% (for cumulative 5-year FD), which is 0.25% extra than the regular interest rate.
  2. Systematic Deposit Plan – You can also look to create small monthly deposits which unlike an RD are multiple FDs on their own with a complete term ranging from 12 to 60 months. You can choose to make 6 to 48 deposits within this time period and each deposit will be a cumulative FD.
  3. Flexible Payout – Choose your payout option as per your needs. Monthly, quarterly, bi-annual or annual payout options are available. 
  4. ROI – With such rates you can look at the following return on investment –
Customer typeInterest rateInterest amountGrowth in savings
New customer7.80%Rs. 45,57745.57%
Existing customer7.90%Rs. 46,25446.25%
Senior citizen8.05%Rs. 47,27347.27%

Differences between RD and FD

Fixed deposits can be created with just one lumpsum payment and can be a great way to invest large surplus cash from gratuity, EPF or PPF. The difference between RD and FD is that an RD is a useful tool to inculcate an investing discipline on a monthly basis by earmarking a certain fixed amount out of your income for investments while FD allows you to benefit from the power of compounding on a large lumpsum amount. Utilise both the options appropriately and take maximum advantage of high interest rates with Bajaj Finance FD.

You can also avail additional benefits such as online easy account opening, online account access, multi-deposit facility – which allows you to open multiple deposits with a single investment. You can plan your FDs as per your tax status and also avail up to Rs. 5,000 of TDS deduction in a year if you do not fall under the taxable bracket.