How to Earn Money from Fixed Deposit (FD)

Learn how to make the most out of your Fixed Deposit and earn more with these tips and tricks. Read on to find out how to maximize your returns.
OPEN FD
4 mins
21-May-2025

95% of Indian households prefer fixed deposit investments for their stability and high returns. The returns and re-runs from your fixed deposits are pre-decided, which can help you plan your investments better. If you are saving for a specific financial goal, maximising the returns of your fixed deposits can be very helpful.

Learn How to Earn from Fixed Deposit and Secure Your Finances

Select a lender with high rates of return

The first step to increasing returns from your fixed deposits, is to select a credible lender, who offers you a higher interest rate. At least 7% or more FD interest rate is ideal for growing your savings, and ensuring high returns. Consider investing in Bajaj Finance Fixed Deposits to ensure higher returns, with stability.

Pick a company fixed deposit

Financial institutions offer company FD, which offer higher interest rates and flexible tenures. These company FDs make it possible to earn more, and offer a suite of different benefits.
Some of the best benefits of company fixed deposits are mentioned below.

Make most of your company FD by choosing the right financier, and opt for the best fixed deposit scheme, as per your financial goals.

Invest in multiple fixed deposits

There are several advantages of investing in multiple fixed deposits:

  1. Gain from varying rates of interest
  2. Build a safety net against riskier investments
  3. Reduce your tax obligations
  4. Gain higher returns
  5. Make use of varying maturity period, so you can leverage a lump sum amount of money

You can manage multiple FDs with some useful tips, as given below.

Pick a cumulative fixed deposit

While a non-cumulative FD pays returns on a periodic basis, a cumulative one lets you accumulate interest over the tenure. The sum benefits from compounding of interest and your principal is not reset to its original value after a fixed amount of time has passed. As a result, you are able to earn more from the sum that you have invested.

Retirement Plan by Bajaj Finserv

Re-invest your interest income

To make your earnings from fixed deposits grow, it is important that you keep re-investing the sum that you get at maturity. This will allow you to generate a corpus to make an expensive purchase, such as a house or car.

So, if you are investing in fixed deposits for growing your wealth, understand your lender’s renewal policy to make necessary arrangements. Choose the right financier and increase your gains!

You can plan your deposits in advance using the FD calculator, which helps you find out the best way to grow your savings, before you invest.

Benefits of Bajaj Finance Fixed Deposits

Here are some features and benefits of Bajaj Finance Fixed Deposit:

  1. Higher interest rates: Bajaj Finance Fixed Deposit offers higher interest rates compared to other fixed deposit schemes. The interest rates can go up to 7.30% p.a.
  2. Flexible tenures: You can choose a tenure ranging from 12 months to 60 months.
  3. Assured returns: Bajaj Finance Fixed Deposit assures returns on your investment.
  4. Multi-deposit facility: You can invest in multiple fixed deposits with different tenures and amounts.
  5. Online loan against fixed deposit: You can avail of a loan against your fixed deposit online.
  6. Higher interest rates for senior citizens: Senior citizens get up to 0.35% p.a. extra interest on their fixed deposits with Bajaj Finance.

Frequently asked questions

How do I get maximum returns on FD?

There are a few things you can do to get maximum returns on a fixed deposit (FD):

  1. Invest for a longer tenure. The longer the tenure, the higher the interest rate you will earn.
  2. Invest in a high-interest rate FD. Compare the interest rates offered by different banks and financial institutions before investing.
  3. Choose a cumulative FD. With a cumulative FD, the interest earned is added to the principal amount every month, so you earn interest on interest.
  4. Invest in a tax-saving FD. If you are eligible, you can invest in a tax-saving FD to save tax on your investment income.

How much I can earn from fixed deposit?

The amount of interest you earn on a fixed deposit depends on the following factors:

  • The principal amount you invest
  • The interest rate
  • The tenure of the FD

Can I get money monthly by fixed deposit?

Yes, you can get money monthly by fixed deposit. This is called a monthly income scheme (MIS). With an MIS, you will receive a fixed amount of interest every month for the tenure of the FD.

What is the maximum and minimum tenor of an FD?

The maximum tenor of an FD is 10 years. The minimum tenor varies from bank to bank, but it is typically 7 days.

Can I earn higher returns on a cumulative FD?

Yes, you can earn higher returns on a cumulative FD. This is because the interest earned is added to the principal amount every month, so you earn interest on interest. However, you will not be able to withdraw the interest amount until the maturity of the FD.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.