A fixed and long-term investment is a decision you are likely to evaluate thoroughly before making a commitment. You can find answers to some of questions that may come to mind when you think of a fixed deposit:

Fixed Deposit Frequently Asked Questions (FAQs)


Q1. What is a Fixed deposit scheme?

A A fixed deposit or FD is a specific financial instrument that is offered by banks and NBFCs in India. These offer higher interest rates than regular savings accounts to investors until the prefixed maturity date. Fixed deposits are considered one of the safest investment avenues in India and are term deposits that yield high interest.

Fixed deposits can vary between 12 and 60 months and the interest rates vary as per the duration and type of FD chosen. The biggest benefit offered by FDs is that one is not dependent on market fluctuations when it comes to earning interest. The principal is safely locked in for a particular period and you can keep earning interest on it irrespective of market circumstances. Also, fixed deposits are major assets whereby you can use them to get loans up to a certain amount whenever you are in need of urgent capital.

The interest is earned periodically either through simple or compounded interest on the principal amount that you invest. The interest rates are higher in comparison to savings accounts since the principal amount remains locked for a particular time period. You should look for the best interest rates on your FD. Bajaj Finance, for example, offers between 7.85-8.10% on fixed deposits.


Q2. What are The Different Types of Fixed Deposits?

A There are two types of Fixed Deposits offered, i.e. cumulative and non-cumulative. In a cumulative fixed deposit scheme, the interest earned on the principal is compounded annually and is payable at the time of maturity of the fixed deposit along with the principal amount. This fixed deposit is ideal for investors willing to grow their wealth without having to depend on interest payouts at periodic intervals. The final payout of the principal plus the interest amount will be subject to tax deductions wherever applicable.

In a non-cumulative fixed deposit scheme, the interest earned on the principal amount is payable on monthly/quarterly/semiannually/yearly depending on the convenience and wishes of the investor. This scheme works for investors who need interest payments on a periodic basis.

Here’s how the interest amount will change when you choose a Cumulative vs. a Non-Cumulative FD:

  Cumulative Non-Cumulative (monthly)
FD amount Rs.10,00,000 Rs.10,00,000
Tenure 5 years 5 years
Interest rate 7.85% 7.58%
Interest earned Rs.4, 59, 153 Rs.3, 79, 000
Maturity amount Rs.14, 59, 153 Rs.13, 79, 000

Q3. What is TDS on Fixed Deposit?

A TDS refers to the Tax Deducted at Source and as per the Section 194A of the Income Tax Act of 1961, interest that is earned from investing in fixed deposits floated by NBFCs and banks is taxable in case it crosses Rs.5,000/Rs.10,000 depending on the type of financial institution. The interest income for a single depositor will be computed after taking all his/her fixed deposits into account. The TDS is calculated by the financial institution and is paid into the requisite Government account depending upon the frequency of interest payouts to the investor.

The TDS certificate is given to the investor on a quarterly basis. In case the investor furnishes Form 15G/15H during the application stage for a fixed deposit, he/she will not have to pay tax on interest income. This can be furnished when the investor’s total income is lower than the taxable limit. Form 15G/H is valid for one financial year.


Q4. How to Choose Best Fixed Deposit Plan?

A You have two options before you, namely Cumulative Fixed Deposits or Non-Cumulative Fixed Deposits. In case of Cumulative Fixed Deposits, the interest you earn on the principal amount will be compounded annually. This means that you can grow your wealth steadily and get the entire interest income paid out at the time of maturity along with the principal amount. There are no periodic payouts of interest income and this scheme can actually multiply your money in a bigger way if you are disciplined enough and do not need regular interest income payouts.

In case of the non-cumulative FD scheme, the interest you earn on your principal amount will be paid out at regular intervals. This can be on a monthly or quarterly basis or even on a semiannually or yearly basis. Now this scheme is ideal if you need the interest income paid out at periodic intervals. It all depends on your own circumstances and the goals you have from your fixed deposit, i.e. earning regular interest income or simply growing wealth for a specific tenure without any regular income needs.

Apart from choosing between these two types, you should also select the best fixed deposit plan based on other parameters which are the following:

  • Rates of interest- You should always go for the highest possible rates of interest
  • Tenure- You should choose flexible tenure as per your convenience
  • Terms & Conditions- You should always choose a fixed deposit plan where you have convenient interest payouts and keep in mind extra rates for senior citizens among other aspects
  • Other features- Go for financial institutions which offer you online access to your fixed deposit account along with easy application and payment procedures

Q5. What are the interest rates offered by BAJAJ FINANCE LIMITED?

A Rate of Interest per annum valid up to Rs.5 Crore (w.e.f. from 10th July 2017)

Tenor in months Cumulative Non-cumulative
Monthly Quarterly Half yearly Annual
12 – 23 7.60% 7.35% 7.39% 7.46% 7.60%
24 – 35 7.80% 7.53% 7.58% 7.65% 7.80%
36 – 60 7.85% 7.58% 7.63% 7.70% 7.85%


Q6. Will any special rates be applicable for specific category of applicants?

A.Yes, below are the special category rates applicable:

  • Senior Citizens (more than 60 years of age, subject to provision of proof of age) – Additional rate of 0.25% p.a. for deposit size up to Rs. 1 crore.
  • Bajaj group employees – Additional rate of 0.10% p.a. (BHIL, BAL, BFS, BFL, MSL, BAGIC, BALIC, MUKAND and Bajaj Electricals) for deposit size up to Rs. 1 crore.
  • Bajaj Finance Limited existing loan customers – Additional rate of 0.10% p.a. for deposit size up to Rs. 1 crore.
  • Only one of the above special category benefit is allowed per transaction.
  • Fixed Deposit renewal customers – Additional rate of 0.10% p.a. for deposit size up to Rs. 5 crore. Additional rate is applicable over and above special category benefit.

Q7. Will any special rates be applicable for bigger deposit amounts?

A.Rate of interest for bulk deposits of more than Rs.5 Crore may vary from the published card rate and to be decided on a case to case basis by Bajaj Finance Limited


Q8. What are the benefits of BFL Fixed Deposit?

A. Now avail best in class fixed deposits from Bajaj Finance Limited (AAA rated NBFC) at attractive rates. Bajaj Finance Limited, one of the fastest growing NBFC from one of the most trusted and respected business houses in India offers an all new Fixed Deposit program for Indian residents.
1) Rated FAAA/Stable by CRISIL, which means highest safety of your money
2) Attractive and assured rates of interest for your money to grow periodically
3) Choose a tenor of any number of months from 12 to 60 carrying different rates of interest to suit everyone’s needs.
4) Branch presence across over 200 locations in India
5) Access to all loan account details on our Customer Portal – Experia
6) Flexibility of payment option through electronic (for deposits size more than Rs 50 Lacs) or physical modes
7) Special rates for senior citizens, existing customers and group employees
8) Bajaj Finance in house products available at attractive rates specially to the depositor


Q9. What are the service facilities that will be offered to me?

A. We are a service oriented organization with complete focus on delivering the best service experience. Some of the key highlights being:

  • Easily accessible touch points
  • Simple and transparent policies
  • A readily available Fixed Deposit online calculator which will help you plan your needs
  • Detailed communication to customers while booking a Fixed Deposit, from request to maturity
  • Scanned copy of all the documents submitted by you, available online for easy access
  • An overall experience to delight


10. What is the min. / max. amount I can invest?

A.A. Following are the details:

  • Customers across India, only where Bajaj Finance has branch presence, minimum deposit amount is Rs. 25,000–applicable for both Cumulative and Non-Cumulative Schemes
  • Subsequent deposits can be of minimum Rs. 25,000 across all BFL branch locations
  • Investments into any of our schemes need to be in multiples of 1000, over the minimum prescribed deposit acceptance size
  • Max amount–there is no maximum investment limit for any of our schemes

11. What is the min/max tenor I can choose?

Min tenor - 12 months
Max tenor – 60 months


12. What interest pay out options are available?

A. We offer cumulative & non cumulative interest payment options. Non Cumulative: In a 'Non cumulative’ fixed deposit scheme the interest is payable on a monthly, quarterly, semi annually and yearly basis. This scheme will be convenient if you require periodical interest payment.
Cumulative: In a 'Cumulative’ term deposit scheme the interest is payable at the time of maturity along with the principal and is compounded annually. This scheme is suitable for an individual who does not require periodical interest payment and acts as a money multiplier scheme. The interest will be compounded annually and the final payout will be subject to deduction of tax, wherever applicable.


Q13. Will I need to provide any referral for opening a Fixed Deposit account?

A. No referrals required, as you are our esteemed customer.


Q14. Who can open a Fixed Deposit account with BAJAJ FINANCE LIMITED?

A.

  • Resident Individuals
  • Hindu Undivided Family (HUF)
  • Sole Proprietorship
  • Partnership Firms
  • Companies including group companies
  • Club, Association and Societies
  • Family Trust


Q15. Who cannot open a Fixed Deposit account with BAJAJ FINANCE LIMITED?

A.

  • Foreign Citizens
  • Person of Indian Origins (PIOs)
  • Non Resident Indians (NRIs)
  • Charitable Trusts


Q16. What are the various modes through which I can make my payment?

A. The amount should be deposited only by cheque made payable to ‘Bajaj Finance Limited – Fixed Deposit Account number 00070350006738’ and crossed ‘Account Payee only’.

A. The cheque should be CTS compliant and payable at par.
For deposits more than Rs 50 Las, the amount may be transferred to the above mentioned bank account of Bajaj Finance Limited through RTGS. Additionally, the physical form needs to be filled up and submitted.


Q17. Can I open a deposit account by cash payment?

A. Bajaj Finance does not accept cash payment for creating a Fixed Deposit account. Also, deposit account cannot be created through borrowed funds.


Q18. What are the various documents I need to submit for opening a Fixed Deposit account?

A.

a) Latest photograph
b) Certified copy of the proof of identify
c) Certified copy of the proof of address.
d) Certified copy of the proof of signature

In case the depositor has already submitted the above documents in his earlier deposit, then he need not submit the above documents again, but has to provide the reference of his customer number or deposit number. Further an existing customer of BAJAJ FINANCE LIMITED wherein the above documents are available need not re-submit the documents.


Q19. KYC documentation required:

A.
INDIVIDUAL


Id Proof (Any one – Self attested):
  • Passport
  • PAN (Mandatory)
  • Voters ID
  • Driving License
  • Aadhar Card
  • NREGA Job Card duly signed by State Government Officer

Address Proof (Any one – Self attested):
  • Passport
  • Voters ID
  • Driving License
  • Aadhar Card
  • NREGA Job Card duly signed by State Government Officer
  • Utility bill which is not more than two months old from any of the following service provider - electricity, telephone, postpaid mobile phone, piped gas, water bill
  • Property or Municipal Tax receipt
  • Bank account or Post Office savings bank account statement


Signature Proof (Any one – Self attested):

  • Passport
  • Driving License
  • PAN Card

NON INDIVIDUAL

PRIVATE LTD/PUBLIC LTD:

A.

  • PAN
  • KYC grid address proof
  • Certificate of Incorporation
  • Memorandum & Articles of Association
  • Authorized signatories list with specimen signatures
  • Board resolution for opening the FD account
  • ID proof of Authorized Signatories as per the KYC grid of ID proof requirement


PARTNERSHIP

  • PAN
  • KYC grid address proof
  • Certificate of registration
  • Partnership deed
  • Authorized signatories list with specimen signatures
  • ID proof of Authorized Signatories as per the KYC grid of ID proof requirement

HUF

  • PAN of HUF
  • KYC grid address proof
  • Self-attested copy of PAN card in HUF name is mandatory
  • Deed of declaration of HUF
  • Bank pass book / bank statement / Demat statement in the name of HUF
  • KYC of all adult members of HUF as per the KYC grid

STATUTORY BOARD/LOCAL AUTHORITY:

  • PAN
  • KYC grid address proof
  • Authorized signatories list with specimen signatures
  • Self Certification on Letter Head

REGISTERED SOCIETIES:

  • PAN
  • KYC grid address proof
  • Copy of Registration Certificate under Societies Registration Act
  • List of Managing Committee members
  • Committee resolution for persons authorized to act as authorized signatories with specimen signatures
  • True copy of Society Rules and Bye Laws certified by the Chairman/Secretary

Q20. Is there any charge/processing fee levied for opening a Fixed Deposit account?

A. There are no charges levied to open your Fixed Deposit account.


Q21. Can I show this FD investment for tax exemption?

A. BAJAJ FINANCE LIMITED FD investment cannot be shown as an investment under section 80C for tax deduction benefit.


Q22. When will my interest amount be paid?

A. Non Cumulative - Interest will be paid to a customer based on scheme interest payment frequency
Monthly option - Last date of each month. The first interest will be paid on the last day of the subsequent month in which the FD is procured. E.g. If the customer has initiated the FD on 25th March and has requested for a monthly interest, the same will be paid on the subsequent month end that is 30th Apr, 31st May and so on.
Quarterly Option - June 30, September 30, December 31 and March 31
Half Yearly Option - September 30 and March 31
Annual Option - March 31 Cumulative scheme - The interest will be compounded annually and the maturity amount will be subject to deduction of tax, wherever applicable. Interest will be paid on maturity.


Q23. What is my FD amount, tenor, interest %?

A. You can refer to your Statement of Account, available on our B2C portal, Experia for details.


Q24. I need my FD certificate /Receipt

A. The original FD receipt is couriered to your address updated in our records along with your welcome kit. A virtual copy of the FD certificate/receipt is available on our B2C portal, Experia to view.
In case a duplicate FD receipt is required, please submit a written request duly signed by all the FD account holders along with an indemnity at our branch.


Q25. I was communicated an interest of xxx% however, I have not received the same.

A. Request you to check the scan copy of the documents available on our B2C portal, Experia as the rate mentioned in the same is signed by you. In case of any further discrepancy please connect with our customer service team.


Q26. I had requested for a tenor of xxx however the FD is not issued on the same lines.

A. Request you to check the scan copy of the documents available on our B2C portal, Experia as the rate mentioned in the same is signed by you. In case of any further discrepancy please connect with our customer service team.


Q27. Can i withdraw this FD before the tenor expiry? If yes, what is the impact on interest?

A. The lock in period for any FD is 3 months, before which the FD cannot be withdrawn. For premature withdrawal there are penalty slabs:
0 -3 mths - FD cannot be withdrawn
3 -6 mths - No interest is payable on the deposit. Only the principle is payable
>6 mths - interest payable is 2% lower than the interest rate applicable for the period for which the deposit has run for. In case of no interest specified for the period run, interest payable will be 3% lower than the lowest rate at which Bajaj Finance accepts deposits.


Q28. If I require money can you give me loan against my FD, at a lower rate?

A. Post 3 months of being on our books, our deposit customers can avail a loan, which will be a maximum of 75% of the deposit amount at a rate which is 2% higher than the rate of interest at which the deposit has been created.


Q29. I wish to add a nominee/change the nominee details on my FD.

A. Currently only one single person can be nominated.
A nominee can also be a minor provided the relevant details are filled on the nomination form. In case the deposit is placed in the name of a minor the nomination can be made only by a person lawfully entitled to act on behalf of the minor.
For any request to change the nominee name, fill/submit the nomination form duly signed, basis which changes will be made in our records.


Q30. What is the process to claim a FD if the customer is no more?

A. Nominee needs to fill in a form and request to encash the FD at the branch. In case of joint account holders, change in the names of deposit holders on deposit receipt and / or bank account to which interest and /or principal shall be credited shall be effected only on the production of a copy of the Death Certificate, certified to be true by notary public, without reference to the heirs and/or legal representatives of the deceased and instruction to the Company in this behalf by all the surviving deposit holder(s) jointly in writing. In any other case, it will be necessary for the legal representative of the deceased depositor to produce Succession Certificate/Letter of Administration/Probate of the Will etc. to the satisfaction of the Company.


Q31. Is the interest on FD taxable? What is the taxable amount?

A. Yes, under Section 194A of the Income Tax Act, 1961, in case of interest earned from investments in fixed deposits floated by NBFCs, exceeds Rs. 5,000, interest income is taxable. At a PAN Card level for the depositor, his interest income will be arrived at after consolidating all his Fixed Deposits. TDS will be calculated by Bajaj Finance and paid into the government account as per the interest payment frequency. The TDS certificate will be provided to the depositor every quarter. In case the depositor provides 15G/15H during the application stage, he will be exempted from paying tax on his interest income.


Q32. In case of non payment of the existing loan will my FD be impacted?

A. No there will be no impact on the FD.


Q33. How soon will I receive my Fixed Deposit receipt?

A. The depositor will receive the Fixed Deposit receipt maximum within 3 weeks of creation of his deposit account, along with the welcome letter from our customer service team


Q34. I am unable to track my FD certificate. Please assist.

A. A virtual copy of the FD certificate is available online on our Customer Portal – Experia, hence the same can be viewed online.


Q35. What is the interest amount that will be credited to my account?

A. Basis the scheme availed by the customer the interest amount will be credited to the customers’ bank account registered with us. Post interest credit to a customers account, communication for the same is sent to the customer via SMS/email.
Refer to your Statement of Account for the details on the interest scheme availed and interest payable details.


Q36. Scheme provided is incorrect. I had asked for cumulative however non cumulative has been given to me. Vice versa

A. Request you to check the scan copy of the documents available on our customer portal, Experia as the rate mentioned in the same is signed by you. In case of any further discrepancy please connect with our customer service unit.


Q37. I wish to renew my FD

A. You can provide maturity instruction while placing the original Fixed Deposit to renew it on maturity. Else, Bajaj Finance will send renewal reminders to the sourcing agent 3 months before the date of maturity of the deposit. You will need to walk in to the nearest Bajaj Finance branch and mention the desire to renew your deposit by filling up the application/renewal form at least 7 days prior to the maturity date. Post 7 days prior to the maturity date, no request will be taken to renew the deposit account. You may renew only principal or principal along with interest.


Q38. How will the maturity amount be transferred?

A. The maturity amount will be transferred to the bank account mentioned by the depositor in the application form through National Electronic Fund Transfer/Real Time Gross Settlement modes only. The entire amount shall be transferred on the date of maturity of the deposit. In case of electronic account transfer bounce, the amount will be sent across to the depositor through cheque


Q39. I need to change my Bank account details?

A.

  • Individual FD account- requesting for a change in his bank account Customer would need to submit a written application for the same, self attested. He also needs to submit a valid ID proof copy among with a cancelled cheque with his name printed (if not printed, then bank statement of the same account needed)
  • Individual FD account – For any name change due to marriage, the lady applicant needs to provide a copy of marriage certificate along with a self attested written application for change of name.
  • Joint FD account- requesting for change in Bank details: Customer needs to submit a written application duly signed by all holders of the FD account, along with a cancelled cheque of the new bank account with his name printed (if not printed, then bank statement of the same account needed)
  • Corporate Account – Request for change in bank details Customer needs to submit a written application duly signed by the authorized Signatories, a Cancelled cheque and the Board Resolution for change in Bank account details.

Q40. What is the customer type that can apply for an FD?

A.Any Indian individual or family trust, club, association, society, HUF, sole proprietorship, partnership firm, company or group of companies can make a fixed deposit with Bajaj Finance. To understand more about eligibility, click here.


Q41. Does Bajaj Finance offer multiple interest payout options at maturity?

A.With a Bajaj Finance Fixed Deposit, both cumulative and non-cumulative interest payment options are available to you. In a Cumulative scheme, the compounded interest will be payable at the time of the maturity. For customers that are not planning to make this investment as source of monthly, quarterly or annual income can benefit from this scheme. Your final payout will be subject to income tax deductions based on the amount.

For customers looking for a continuous flow of interest, a non-cumulative fixed deposit scheme can prove to be very beneficial where the interest is payable on a monthly, quarterly, semi-annually and yearly basis. You can decide your plan before you invest and enjoy the benefits of a steady flow of income.


Q42. What is the tenor one can have a Fixed Deposit for?

A.You can invest in an FD for a period of 12 months all the way up to 60 months.


Q43. Why invest in an FD?

A.A Fixed Deposit encourages a healthy habit of saving and guarantees fixed returns without any anticipated risks. A fixed deposit allows you to put your idle savings to good use and grow your wealth.

You can also be rest assured about your investment since Bajaj Finance Limited is one of the fastest growing NBFCs from one of India’s most reliable and valued business houses. Bajaj Finance is known to provide one of the most attractive interest rates in the industry and has also been awarded several awards for its reliability. To download an application form for a Bajaj Finance Fixed Deposit, you can click here.


Q44. What are the fixed deposit interest rates offered by Bajaj Finance?

A.Bajaj Finance offers high interest rates of 8.05% on your fixed deposit. An attractive rate of interest per annum of up to a deposit of Rs.5 crores is also on offer. These fixed deposit rates are available on a cumulative and non-cumulative basis.


Q45. What is the minimum amount required to open an FD with Bajaj Finance?

A.You can open an FD with a minimum deposit of Rs.25,000.


Q46. In which cities Bajaj Finance offer FD facility?

A.You can apply for an FD from Bajaj Finance in more than 200 cities across India. Here’s a list of cities where we offer our FD services:

Mumbai Chennai Delhi Kolkata Hyderabad Bangalore
Pune Ahmedabad Faridabad Gurgaon Noida Thane
Ahmednagar Allahabad Bareilly Ankaleshwar Bokaro Karur
Kurukshetra Mapusa Margao Udipi Vapi Gandhidham
Ajmer Ratnagiri Amravati Anantpur Navsari Bharuch
Bhiwandi Bikaner Bilaspur Davangere Dhanbad Dharwad
Dindigul Gulberga Gwailor Hoshiarpur Jammu Kollam
Korba Kurnool Nagarcoil Phagwada Sangli Shimoga
Siliguri Sirsa Tanjore Tirupur Valsad Varanasi
Warangal Jaipur Nasik Rajkot Agra Ambala
Amritsar Anand Asansol Aurangabad Baroda Belgaum
Bhatinda Bhavnagar Bhilai Bhopal Bhubaneshwar Calicut
Chandigarh Chandrapur Cochin Coimbatore Cuttack Dehradun
Durgapur Erode Goa Guntur Hubli Indore
Jabalpur Jagadhri Jalandhar Jalgaon Jamnagar Jamshedpur
Jodhpur Kakinada Kanpur Karnal Kolhapur Kota
Kottayam Lucknow Ludhiana Madurai Mangalore Mysore
Nagpur Panipat Patiala Patna Pondicherry Raipur
Rajahmundry Ranchi Rourkela Salem Shimla Solapur
Surat Tirunelveli Tirupati Trichur Trichy Trivandrum
Udaipur Vijayawada Vizag Akot Baramati Bardoli
Bhandara Borsad Chalisgaon Chikhli Chiplun Chopda
Dabhoi Dahod Dhule Halol Himatnagar Jamner
Kadi Karad Khamgaon Kopargaon Latur Nandurbar
Palanpur Pandharpur Pen Pimpalgaon Rajgurunagar Satara
Wani Wardha Warud Washim Morbi Mehsana
Junagadh Bhuj Tenali Eluru Machilipatnam Vizianagram
Rajnandangaon Ropar Kalka Thiruvalla Karunagappally Vadakara
Alappuzha Dewas Ujjain Nabha Rajpura Kapurthala
Moga Namakkal Dharapuram Cuddalore Pollachi Jalpaiguri
Chittaranjan Bolpur Ranaghat Kannur Akola Nanded
Rohtak Nellore Kaithal Karaikudi Kharagpur Tuticorin
Haldia Kolar Mandya Hassan Tumakuru Chitradurga
Hospet Bellary Raichur Bidar Bijapur Bagalkot
Surendranagar Amreli Nadiad Barshi Ratlam Sehore
Guna Puttur Haveri Khandwa Vidisha Hoshangabad
Chhindwara Yavatmal Satna Rewa Katni Gokak
Karvar