How to choose the best Fixed Deposit plan

Confused about choosing the right Fixed Deposit plan? Our guide helps you pick the perfect one for your financial aspirations. Secure your future with confidence.

3 mins
18 August 2023

Fixed deposits (FDs) are one of the most popular investment options available in India. With numerous banks and non-bank financial institutions offering FDs, choosing the right one can be a daunting task. The key to choosing the best fixed deposit plan lies in understanding what you are looking for in an investment and what the various options in the market offer. This article aims to present the factors you should consider when choosing the best fixed deposit plan that aligns with your investment objectives.

Factors to consider before investing in a fixed deposit plan

The fixed deposit comes with the assurance of capital safety, even during increasing market volatilities. You can reap the benefit of steady capital appreciation and enjoy the advantages of a safe investment tool with fixed deposits.

You can choose the best-fixed deposit plan by considering the following factors:

  • Interest rate: Compare the Fixed Deposit interest rates of different types of FDs offered by different institutions.
  • Credibility: Opt for only “A”-rated deposit schemes, with credible ratings from reputable organisations like ICRA or CRISIL.
  • Deposit tenure: Long-duration deposits usually offer higher interest rates. Cross-check the rates against the lock-in periods of the FD for high returns in time for your goals.
  • Interest calculation and payouts: If you need regular assistance, check for periodic interest payouts and note the compounding frequency (higher implies more interest).
  • Reinvestment: Reinvest the earned interest to increase your FD corpus. Look for FD auto-renewal to reinvest seamlessly.
  • Penalty: Check the penalties for breaking an FD before maturity in case of any emergency. Most NBFCs and banks lower the interest rates in case of premature withdrawal.

Calculate your expected investment returns with the help of our investment calculators:

Investment Calculator
SIP Calculator FD calculator SDP calculator Gratuity Calculator


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
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.