Fixed deposits have been one of the popular investment instruments in India as they provide both high returns and stability of the invested amount.
Since the interest rate of an FD remains fixed throughout its tenor, you can easily predict the returns in advance using an FD calculator monthly interest predicting tool.
The bank FD rates currently range between 5 to 5.5% which means that the gap between growth rate and the inflation rate is further reduced. It affects your purchasing power especially post taxation on your interest earnings.
This means that you should look for FD plans that offer much higher interest rates than 5.5%. Luckily, finance companies like Bajaj Finance are offering interest rates up to 7.35% which makes it one of the highest FD interest rates in India.
However, only investing in a high-paying fixed deposit plan will not be sufficient for your wealth accumulation plans in the long run. You can follow some of these best practices to maximize the earning potential of your deposits:
Reinvest your returns
Reinvesting your returns post maturity would help you build a huge corpus especially if you choose cumulative FD plans of a longer tenor. As the interest of an FD gets compounded after every quarter, the original principal and interest earned will be treated as a new principal during the next interest calculation period. As a result, your interest earnings will not get disbursed in payouts and you will receive a much higher amount at maturity.
Bajaj Finance FD offers an auto-renewal option using which you can renew your deposit for another tenor without going through the entire process and documentation.
Everyone cannot afford to invest in a cumulative FD as they need funds regularly to meet their basic needs. Therefore, they usually go with non-cumulative FDs that provide regular interest payouts.
However, there is no necessary to worry as the option of splitting the funds and depositing them in multiple FDs is still available. This method is called laddering deposits in which you invest in different types of FDs and the tenor should be selected in such a way that it provides more liquidity options to you.
Moreover, the varying fixed deposit interest rates of each FD will fill the gap created in your interest earnings due to the fluctuating interest rates.
The multi-deposit feature offered by Bajaj Finance FD enables you to invest in multiple FDs of varying tenor and FD types at once. You can deposit in all the FD accounts at once with a single cheque and each of these deposits can have different tenors between 12 and 60 as per your financial needs.
Online application process
In this digital age, you would not want to waste your time and energy in completing all the formalities by personally visiting the bank or branch office. To make things easier, many banks and finance companies have started providing an online FD form to their customers.
Bajaj Finance has gone one step ahead and provided a complete procedure to book an FD online. You also get a 0.10% extra interest rate on booking an FD online.
All these benefits and the high credit ratings provided by ICRA and CRISIL make these FDs one of the safest alternatives to boost your investments.
It is difficult for investors to choose between instruments these days due to the fluctuating market conditions. A fixed deposit plan which is also known as term deposit is one of the better choices when it comes to total safety of the invested capital. Even the bank FD rates have been reducing this year and this has raised concern among everyone who saw it as a good option to grow their savings. However, you can still invest in Bajaj Finance FDs that are offering interest rates up to 7.35%. Apart from the high-interest rate you also get the option of investing in multiple FDs at once and the option of selecting a flexible tenor from 12 to 60 months enables you to ladder your deposits without any issues.