Investors have always looked at fixed deposits as a lucrative investment option as it allowed them to gain high interest without taking any risks. As banks reduced the FD rates following the repo rate cuts implemented by RBI, it became an unattractive investment option for some investors. However, there are still some investment avenues and methods that can help you earn sufficiently through FDs. Here are some ideas that can help you earn high interest with FDs and that also without any worries:
Invest in high-paying FDs
Even though bank FD rates are not encouraging enough, you can still invest in a high-paying FD such as those offered by NBFCs. The FD rate of up to 6.75% that is applicable on Bajaj Finance FD is among the highest FD interest rates in the market currently.
While investing in a high-paying FD, you must also cross-check the credit ratings of the financier as you would want to invest only in the safest instruments in the present scenario. Bajaj Finance FD has the highest credit rating from ICRA (MAAA) and CRISIL (FAAA). These ratings are high enough to confirm that it is safe to invest in Bajaj Finance FD.
Analyze returns offered by several financiers
If you are not sure about the fixed deposit plan that you must invest in, you can utilize the FD calculator that is available on the official portals of most banks and NBFCs nowadays. By analyzing the returns offered by different financiers, you can pick an FD plan that offers the highest returns.
For instance, if you choose to invest in a bank FD for 5 years, you may get interest rate of up to 5.5% on an average. However, for the same tenor, the Bajaj Finance FD interest rate can be up to 6.75% depending upon the customer type, tenor, and FD type you choose. Suppose that you deposit Rs. 30,00,000 in a fixed deposit plan. The below-given table might help you make a decision easily:
| FD plan | Principal Amount | Tenor | Rate of Interest | Interest Gains | Returns | Growth in savings (%) |
| Bank FD | Rs. 30,00,000 | 5 years | 5.5% | Rs. 9,42,200 | Rs. 39,42,200 | 31.40% |
| Bajaj Finance FD | Rs. 30,00,000 | 5 years | 6.75% | Rs. 11,58,730 | Rs. 41,58,730 | 38.62% |
You may also choose to invest in its non-cumulative FDs that come with annual, bi-annual, quarterly, and monthly interest payout alternatives.
Laddering deposits
Laddering deposits is a smart way to evade losses when the FD interest rates are low. By laddering, you ensure that you invest in multiple fixed deposit plans that have different maturity dates. As a result, you can invest your interest earnings at a higher FD interest rate whenever the FD rates go up again.
Bajaj Finance FD gives the option of investing in multiple fixed deposit plans through the multi-deposit facility. By using it, you can pick a unique tenor for each deposit and the amount and FD type can also vary as per your requirements. The payment for all the deposits can be made through one cheque and a flexible tenor ranging from 12 to 60 months would be available irrespective of whether you invest in one or multiple FDs.
A higher FD rate of 0.10% will be applicable if you prefer to invest in Bajaj Finance FD through an online FD form. Also, if your age is above 60, you will be eligible for a 0.25% higher interest rate. Therefore, there is no need to worry about falling fixed deposit interest rates when you can invest in Bajaj Finance FD that offers higher interest rates, convenient investment options, and features like a multi-deposit facility.
The bank FD rates have been reduced considerably but you can still earn a decent interest by investing in a corporate FD. Bajaj Finance FD helps your investment multiply at interest rates f up to 6.75%. To find whether this interest rate would generate higher returns than bank FDs, you can use a fixed deposit calculator. Also, you can utilize the multi-deposit feature offered by Bajaj Finance FD to ladder deposits conveniently. The higher FD rates applicable to senior citizens and online investors make it one of the lucrative investment options in India.
Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.
