Fixed Deposits Interest Rates
Fixed deposits continue to be one of the preferred financial instruments in India because they are secure as compared to equities and other market-linked instruments. However, the interest rates of FDs have not been satisfactory especially in the last year or so due to global economic uncertainty and other reasons.
Banks have lowered their fixed deposit interest rates recently and you probably won’t see much growth in them anytime soon. Even then, corporate fixed deposits have been offering a reasonable interest rate whereas the borrowing rate has not been on the higher side.
This means that the financiers will not bother to increase the FD rates any sooner. Therefore, it becomes essential for you to analyze your options before investing your money. It is wise to lock-in existing high FD rates before any further rate cut.
Here are a few things that you can do to ensure that you earn sufficiently by investing in an FD:
Compare FD rates carefully
The FD interest rates 2020 depend on the tenor you have chosen and different banks and finance companies will offer different interest rates for the same tenor.
To compare the interest rates of various FD plans based on their tenor, minimum investment amount, and other factors, you can use an FD calculator.
You will find the FD calculator on the portal of most financiers these days. This online tool will not only help you to compare FD rates but you will also be able to calculate returns on maturity easily which might help you to plan your finances in a better way.
Invest in senior citizen FDs
If you are a senior citizen then you will be eligible for a higher FD interest rate. This extra FD rate will help you gain higher returns post maturity or you can benefit from better interest payouts by locking your savings in an FD plan that offers periodic interest payouts.
You can invest in a Bajaj Finance FD that provides 0.25% higher interest rates to senior citizens. These FDs also allow you to withdraw interest payouts on a quarterly, yearly, six-monthly, or monthly basis as per your needs and expenses.
Think of other options
Apart from banks, even post offices and finance companies offer term deposit plans to their customers. You can check the interest rates offered by these plans to benefit from the higher interest rates.
For example, Bajaj Finance offers interest rates up to 7.35% which is much higher than bank FDs that are barely offering interest rates over 5% currently and even post office FD which is currently offering interest rates up to 6.7%. To steer your investments clear from the fluctuating market conditions and still manage to earn considerable returns, you can invest in a Bajaj Finance FD.
You can avail of flexible tenor options ranging from 12 months to 60 months. You can also avail of other modern tracking features like a fixed deposit calculator and the option of investing in an FD online. You will also get 0.10% additional FD rates on using the online account opening procedure.
You can also think of investing in cumulative FDs of longer tenors to earn better returns or you can invest in multiple FD plans to reserve your option of investing in a better-paying FD upon maturity.
The multi-deposit facility from Bajaj Finance lets you invest in multiple fixed deposit schemes of different tenors and types with ease.
Bajaj Finance FD has also received high ratings for its stability and safety from credit rating organizations like ICRA and CRISIL. Therefore, you can invest your money safely without the risk of losing your capital amount due to market fluctuations.
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