Fixed Deposit Checklist: 4-Step Checklist for Smart Investing

Here is a checklist that will help you choose a suitable fixed deposit.
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FD checklist
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4 mins
26 July 2024

One of the most reliable modes of investment, a fixed deposit ensures the security of your deposits to earn a regular income. It eventually helps meet your financial goals. You can check the returns on your FD to plan your expenses by doing a little market research.

Things you must check before investing in an FD

1. Fixed deposit interest rate

A fixed deposit (FD) is undoubtedly a safe way to grow your investments. But, banks and other financial institutions provide FD at different interest rates. You must know about the prevailing FD rates across the market and compare them before investing.

Non-Banking Financial Companies (NBFC) usually provide higher interest rates than banks. Financial institutions like Bajaj Finance offer interest rates as high as 8.85% p.a. on FD. The FD rates also depend on the tenure that you choose for the investments, and higher tenure gives higher returns. You can invest in Bajaj Finance Fixed Deposit with an amount as low as Rs. 15,000. You can get a maximum return of up to 8.85% p.a. for 42 months tenure.

In general, investing in an FD means you must invest a lump sum amount of money for a certain period and earn interest upon maturity. That certain period is tenure. Bajaj Finance provides a wide range of tenures for an FD from 12 to 60 months. In emergencies, you can also break your FD to withdraw funds, even before maturity, incurring a loss of interest. This penalty or interest loss depends on when you choose to withdraw.

There is a lock-in period of 3 months, and interest for 3 to 6 months shall not be payable. After 6 months but before the date of maturity, the rate of interest shall be 2% lower than the rate specified for the period during which the scheme has run. In case no rate is specified for the deposit period, the interest rate payable shall be 3% lower than the lowest rate offered by the Company

Click here to check the Bajaj Finance Fixed Deposit interest rates for different tenures.

Pro tip

Bajaj Finance launches a new variant, "FD Max", for investments upto Rs. 25,000 . Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a.for senior citizens and 8.60% p.a. for non-senior citizens , in this variant.

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2. Minimum amount

Fixed deposit is naturally less risky and offers profitable returns. Banks and NBFC both have a very low investment amount to start with an FD. In this way, even an individual with a lower earning potential enjoys the benefits of a fixed deposit at significant interest rates. You can start your investments with a financial institution like Bajaj Finance Fixed Deposit. You can get the interest of up to 8.85% p.a. starting with a minimal investment of Rs. 15,000.

All the residents, individuals, and non-individuals can apply for a fixed deposit in India.

Individuals eligible to book an FD are:

  1. Resident Indians
  2. Non-resident Indians
  3. Persons of Indian Origin, and
  4. Overseas Citizens of India

Non-individuals eligible to book an FD are:

  1. Partnership firms
  2. Sole proprietorships
  3. Companies
  4. Hindu Undivided Families (HUFs)
  5. Clubs
  6. Associations
  7. Societies, and
  8. Family trusts

To book an FD in Bajaj Finance, you must be 18 years and above. Invest in Bajaj Finance online FD to book a deposit in less than 10 minutes and save your time. Alternatively, you can book an FD by connecting with our representative or writing to us at wecare@bajajfinserv.in

New customer needs to submit the following documents to book a Bajaj Finance FD:

  1. Latest photograph
  2. KYC of all applicants
  • PAN card
  • Aadhaar card, passport, driver’s license, voter ID (any one)

3. Credit rating

When it comes to investment, security is the most critical aspect. You would always want to ensure that the deposits are safe and gives a profitable returns.

You can be rest assured investing in Bajaj Finance Fixed Deposit with the highest credit ratings – CRISIL AAA/ STABLE and [ICRA]AAA(Stable). These ratings ensure the highest degree of safety for your funds in a company. The higher the credit rating, the lower the risk.

4. Payout

All financial institutes providing FD offers two types of payouts, cumulative and non-cumulative.

In cumulative FD, you can invest a lump sum amount over a period, and you get the payout (principal+interest) at maturity (tenure end). The returns are very good here as the interest gets fully compounded and earned after maturity. It is an excellent option to earn higher returns and for those with a good amount of money to set aside for growth.

The non-cumulative option allows you to earn a regular payout. You can choose monthly, quarterly, half-yearly, or yearly payout frequencies. However, it is a good option for those dependent on regular payouts to meet their financial goals.

You can calculate the returns on FD using an FD calculator

Frequently asked questions

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD variant called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.60% p.a. The Digital FD can be opened and managed only through the Bajaj Finserv website or app.

How to Calculate the Interest on FD Amount?

To calculate interest on FD use the formula: Interest = Principal × Rate × Time / 100 for accurate FD interest calculation. You can also use online tools like Bajaj Finance FD calculator to calculate your interest on FD.

What is the minimum and maximum deposit amount for FDs?

Minimum and Maximum deposit amounts vary from different financial institution but it generally starts from Rs. 1,000 and there is no fixed maximum limit.

Can I take a loan on an FD account?

Yes, you can take a loan against your FD account. Many financial institution like Bajaj Finance offers loan against 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.