A fixed deposit is an instrument that NBFCs and banks offer to provide an opportunity to the investors to grow their savings at a higher rate. However, booking an FD that offers a high-interest rate and comes with the right set of features is crucial if you want to truly benefit from it. To find fixed deposit interest rates that are high enough to satisfy your need for wealth accumulation you can utilize the tips that are listed below:
A simple way to find the best FD plan would be to compare the returns of various FD schemes. An FD calculator will make it easy for you to compare FD schemes across various financiers. It will also help you to determine whether the tenor range, minimum deposit amount, and other options will complement your investment plans.
FD interest rates in 2021
The bank FD rates can be anywhere between 3.5% to 6% depending upon your choice of bank and tenor. A longer FD tenor might provide you a slightly higher FD interest rate and some banks and finance companies offer slightly better FD rates to senior citizens. However, the additional FD rates will not be of much value if the base interest rate is not high enough.
Currently, the highest FD rates in India are provided by Bajaj Finance as it is offering an interest rate of up to 7.25%. Suppose that you invest Rs. 5,00,000 in a bank FD for 5 years and if the same amount is invested in Bajaj Finance FD for the same period then let’s see the difference in returns given in the below table:
|Fixed Deposit Plan||Amount||FD tenor||Interest Rate||Interest earnings||Maturity Amount|
|Bank FD||Rs. 5,00,000||5 years||6%||Rs. 1,73,428||Rs. 6,73,428|
|Bajaj Finance FD||Rs. 5,00,000||5 years||7.25%||Rs. 2,09,507||Rs. 7,09.507|
The difference is big enough to provide you with better returns and this difference could be even bigger if you invest a higher amount. Moreover, you can even reinvest your deposits for a longer tenor to multiply your interest gains over a period.
Systematic Deposit Plan
In the current scenario, you need to save some money every month so that you can build a corpus to fulfill your dreams in the future. Bajaj Finance lets you do that via its SDP i.e. Systematic Deposit Plan. In SDP, you don’t have to invest a huge amount and neither do you have to worry about the changing market conditions. This is because you can start investing with as little as Rs. 5000 every month and each of your monthly deposits will be further locked-in up to a tenor that will be selected by you.
The interest rate will be determined by the FD rate that is applicable on the date of investment and it is also a safe option since it also has high credit ratings of ICRA and CRISIL.
Short Term Investments
Moreover, it comes with two variants out of which give you the option of locking-in each payment for a fixed period whereas the other one gives you the freedom of withdrawing all the deposits at once. Therefore, if you are looking for short term investments with high returns and flexible options then it is a good alternative for you.
Fixed deposits enable you to earn at a higher rate without compromising the safety of your deposits. However, to benefit from FDs you will have to deposit your savings at a higher interest rate.
You can compare the FD schemes offered by various financiers by using the FD calculator that will be included in their official portals. One of the best investment options is to invest in a Bajaj Finance FD as it is providing an interest rate of 7.25% and also offers a higher FD rate of 0.25% to senior citizens and a 0.10% FD rate to online investors.
The Systematic Deposit Plan offered by Bajaj Finance lets you gain the benefit of higher interest gains of FD without depositing a lump sum amount at once. Therefore, you can use SDP as well to achieve your short term goals and the FDs can be used for attaining your long-term investment objectives.