Fixed Deposit (or FD) is known as one of the most preferred investment avenues for individuals looking to grow their savings steadily, without any effect of market volatilities. Instead of letting your money lie idle in savings account, investing in a Fixed Deposit can help you beat inflation and earn assured returns that are higher than those offered by savings accounts.
Though you may have seen FD as a plain and simple investment instrument, you can consider maximising your returns furthermore, by employing the right tactics. Here’s a rundown on how you can earn more on your FD investments.
Invest in a company FD
Investors usually believe that deposits offered by companies (or NBFCs) offer higher returns than those offered by banks. But, investors are sceptical of investing in NBFC Fixed Deposits, because of higher amount of risk involved. However, to vanquish such fears, it is best to choose deposits rated high on credibility and stability by credit rating agencies.
For instance, Bajaj Finance Fixed Deposit carries the highest ratings of FAAA by CRISIL and MAAA by ICRA – which are the highest ratings in their respective categories. These indicate the highest safety of your deposit, and the promise of assured returns, with a default-free experience. Additionally, the company has nearly 2,35,000 unique FD customers along with a deposit book of more than Rs. 20,000 crores. Amid falling FD interest rates averaging 4-6%, choosing a reliable company FD like Bajaj Finance that offers lucrative returns, can help you grow your savings easily.
Look for additional rate benefits
In today’s times of fluctuating stock indices and high market volatilities, fixed deposit comes across as one of the safest investment options to grow your savings. With falling FD interest rates, the returns on your FD may not be as high as you’d hoped, but you can still maximise your savings by looking for additional rate benefits. It is best to look for issuers offering the right balance of safety and attractive returns, and one of the best examples of such an issuer would be Bajaj Finance.
Bajaj Finance is offering attractive FD interest rates of up to 7.10%, which can go up to 7.35% for senior citizens.
To understand how this FD yields one of the best returns, here’s a table with earnings forecasted for different customer types, investing Rs. 25,00,000 in a Bajaj Finance Fixed Deposit for 5 years.
| Customer Type | Tenure (years) | Investment amount (Rs.) | Interest rate | Interest payout (Rs.) | Maturity amount (Rs.) |
| Offline customers | 5 | 25,00,000 | 7.10% | 10,22,795 | 35,22,795 |
| Online customers | 5 | 25,00,000 | 7.20% | 10,39,272 | 35,39,272 |
| Senior citizens (Offline/online) | 5 | 25,00,000 | 7.35% | 10,64,103 | 35,64,103 |
From the above table, it can be deduced that investing in a Bajaj Finance online FD not just offer higher convenience, but can also enable customers below 60 years of age, to gain 0.10% higher returns on their deposit. In the above example, you can see how a customer investing online earns Rs. 16,477 more interest on the same investment amount, locked in for the same tenure.
Ladder your investments efficiently
For those looking to enjoy higher liquidity, staggering investments can be a good strategy to ensure decent returns and liquidity. You can stagger your investments, as per your liquidity needs, which can be easily done with the Multi-deposit facility offered by Bajaj Finance. Additionally, you can also choose to save on a monthly basis, reaping the benefits of monthly returns with the Systematic Deposit Plan by Bajaj Finance. With this savings plan, you can start saving just Rs. 5000 per month. You can make 6 to 48 monthly deposits, each of which are selected for tenures ranging from 12 to 60 months. Once the first FD matures, you get proceeds every month.
Choose to receive payout at maturity
When investing in a Bajaj Finance FD, availing payouts at maturity can help you earn higher returns, so you can maximise your gains easily. This is because, when you forgo periodic interest payouts, the interest you earn is reinvested and you gain from the benefit of compounding. Thus, the higher your payout frequency, the lower is the effective interest rate. You can use the FD interest rate calculator to choose the best way to grow your savings.
Re-invest your returns for further gains
If you’re looking to grow your corpus, consider reinvesting you returns, if you don’t need the savings immediately. You can either choose to renew your deposits, before they mature, or you can opt for auto-renewal facility by Bajaj Finance, which enables you to stay invested for a longer tenure, without the need for manual intervention. Bajaj Finance also enables you to enjoy an additional 0.10% interest rate on renewing your deposits.
To further enhance your FD gains, through the power of compound interest, you should reinvest your proceeds rather than park them in a savings account, should you not need liquidity immediately. To do so, Bajaj Finance offers the Auto-renewal facility. It allows you to stay invested for a longer tenor, without manual intervention and what’s more, it lets you pick up renewal bonuses, currently a 0.10% interest rate hike, on the way.