Get high interest rates with Bajaj Finance fixed deposit !

▴ bajaj-finance-fixed-deposit
While you may think that marginal differences in FD rates do not amount to much, results obtained through an FD calculator indicate otherwise.

When you invest in a FD, you earn returns at a fixed interest rate through the tenor. Usually,fixed deposit rates on company deposits are higher than those you can obtain at a bank. For example, you can earn interest at a rate as high as 8.95% when you invest in a Bajaj Finance Fixed Deposit. Even after the recent repo rate cuts, this FD is offering one of the highest interest rates.

While you may think that marginal differences in FD rates do not amount to much, results obtained through an FD calculator indicate otherwise. To help you make a smart FD investment, here are 7 things to know about high FD interest rates.

Company FDs normally offer you better rates than bank FDs

You can open an FD with a bank or a non-banking financial institution. While bank fixed deposit schemes may be the more familiar option, they aren’t the best when it comes to getting high interest rates. Company fixed deposit schemes can outmatch bank FDs in this regard.

To illustrate, consider that FD interest rates at banks run up to around 6.5 to 7%. At most, you may get a rate of 8 to 8.25% on a bank FD. However, rates on a Bajaj Finance FD, a company deposit, start at 8% and run up to 8.95%.

Even a 0.5% rate difference can impact your returns greatly

At first, you may not make much of the marginal differences in FD interest rates. For example, you may obtain a rate of 8.10% on a certain FD and an interest rate of 8.60% on Bajaj Finance FD taken for 3 years with interest payouts at maturity. The 0.5% rate difference impacts your returns substantially, especially in the long run.

Consider that you start with a principal of Rs. 5 lakh and opt for a tenor of 5 years. An FD that offers a rate of 8.10% transforms your principal into Rs. 7,38,071. However, the FD that yields interest at an 8.60% rate gives comparatively better returns. Here, you get Rs.7,55,299 at maturity.

Higher rates let you meet your financial goals like a retirement fund more effectively

Whether you need to finance your child’s overseas education or build a large retirement corpus, high interest rates help you tackle your financial goals more easily. When you invest in FDs for longer timeframes, say 20 years, higher FD interest rates provide you with additional finances and help you cater to urgent and unforeseen needs as well.

FD interest rates depend on tenor and payout frequency

To fetch the highest fixed deposit rates your issuer has on offer, choose your FD parameters wisely. Generally, FD interest rates peak when the tenor reaches 3 years. For example, as a new customer, interest rates on a Bajaj Finance FD start at 8%.

However, this rate rises to 8.60% when you invest for a tenor of at least 3 years and take back your proceeds at maturity. While you have the option to earn frequently through regular interest payouts, this comes at a cost. The interest rate drops as your payout frequency increases.

Higher FD interest rates for senior citizens and existing customers

By investing in a Bajaj Finance Fixed Deposit, existing customers and senior citizens benefit from higher FD interest rates. The interest rate hikes are 0.25% and 0.35% for both customer profiles, respectively. By accounting for this hike, the FD interest rates for senior citizens goes up to 8.95%, which is one of the highest interest rates in the country.

0.10% more interest on renewing FD

Investing with a Bajaj Finance FD also helps you develop good investment habits with greater financial discipline. Here, you get a 0.10% interest rate boost when you renew your FD. In the long run, this incremental rate increase can provide you with a higher payout that you may consider a surplus. Use it to add a bit of luxury to your lifestyle or to cater to short-term financial setbacks.

High interest rates are more valuable when coupled with low risk

Lucrative interest rates are dependable only when the FD that offers them has good credit ratings. Otherwise, you may not get timely payouts and at worst, your principal may not be returned. Bajaj Finance’s FD has been rated with an MAAA rating by ICRA and a FAAA rating by CRISIL. These being the highest in their respective categories, assure guaranteed returns.

Tags : #fd #bajajfinance #finance #interest #medicircle

About the Author

Snehangshu Dasgupta,

Managing Editor
[email protected]

Related Stories

Loading Please wait...

Trending Now

PM addresses the Nation today, announces free vaccinesJune 07, 2021
Why inhalers are best for treating asthma, well illustrated by Dr. Anil SingalMay 12, 2021
Dr. Rohan Palshetkar shares his invaluable insights about the Maternal Mortality Rate causes and improvements in India April 29, 2021
It is important to adopt a non-judgmental attitude towards any teenage girl seeking contraceptive advise suggests Dr. Teena Trivedi, Obstetrician and GynecologistApril 16, 2021
80% of the diseases are psychosomatic which means they have roots in the mind and this is where homeopathy steps in - It resolves physical ailments by finding the cause in the mind – Dr. Sanket Dhuri, Consultant Homeopath April 14, 2021
A futuristic Vision of a Healthcare Entrepreneur: Shyatto Raha, CEO, and Founder of MyHealthcareApril 12, 2021
Saher Mehdi, Founder and Chief Scientist at wellOwise talks about aspects making healthcare more equitable and reachableApril 10, 2021
Wide variety of therapies to address autism in children explained by Dr. Shilpa Jasubhai, Clinical PsychologistApril 09, 2021
Allopathic and Homeopathic medicines should not be taken together says Dr. Sunil Mehra, Homeopath ConsultantApril 08, 2021
The charm of homeopathic medicine is that it can be taken with conventional medicines – Dr. Shruthi Shridhar, Consulting Homeopath April 08, 2021
Dissociative Identity Disorder and associated concepts explained by Dr. Vinod Kumar, Psychiatrist and Head of Mpower - The Centre (Bangalore) April 07, 2021
Dissociative Identity Disorder explained by Dr. Shilpa Jasubhai, Clinical PsychologistApril 05, 2021
Sehat Ki Baat, Karishma Ke Saath- Episode 6 Healthy Diet For Boosting Metabolism Which Can Help Thyroid Patients April 03, 2021
Significant Pointers on Kidney Health by Dr. Santosh Waigankar, Consultant Urooncologist and Robotic Surgeon at Kokilaben Dhirubhai Ambani HospitalApril 01, 2021
Dr. Vaishal Kenia, Ophthalmologist Talks About the Different Possibilities Available for the Treatment of Glaucoma Depending Upon Their Type and SeverityMarch 30, 2021
No Definitive Role of Diet in Treatment of Lymphedema but Intake of Calories, Salt and Long Chain Fatty Acids should be controlled says Dr. Ramani CVMarch 30, 2021
Dr. Kiran Chandra Patro, Senior Nephrologist Talks About Dialysis as the Temporary Process and Not a Permanent Cure for the Patients of Renal DysfunctionMarch 30, 2021
Two out of three new chronic kidney disease patients are found to have diabetes or hypertension informs Dr. Sreeharsha HarinathaMarch 30, 2021
Glaucoma Treatment: Medications or Surgery? A valuable piece of advice from Dr. Pranay Kapdia, Chairman and Medical Director of Kapadia Eye CareMarch 25, 2021
Dr. Shraddha Satav, Consultant Ophthalmologist Recommends that Everybody After 40, Should Go for the Complete Eye Checkup at Regular IntervalMarch 25, 2021