Types of Fixed Deposit - Choose the Right FD for You

Types of Fixed Deposit - Choose the Right FD for You

Know the different types of fixed deposit along with its features and benefits.

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4 mins
01 Feb 2023

A fixed deposit (FD) is an investment option offered by banks and other financial institutions. In this a customer can deposit a lump sum of money for a fixed period of time, usually ranging from a few months to several years. The customer earns interest on the deposited amount, and the interest rate is usually higher than that of a regular savings account.

Fixed deposits have a fixed interest rate for the entire tenure, and thus the name. However, the FD rates may vary from one company or bank to the other. The money in a fixed deposit can be withdrawn before the completion of tenure by incurring some financial repercussions. In case of emergency, you can withdraw your money with some loss of interest.

Who offers FD

Fixed deposits are offered by banks, non-banking financial institutions and post offices. If you fulfil the eligibility criteria, you can invest your money in a fixed deposit with any company or bank. Investors can choose where they want to invest their money, by comparing the interest rates, credit ratings of companies and other factors.

Types of fixed deposit (FDs) available

Bajaj Finance Fixed Deposit enjoys a [ICRA]AAA(Stable), indicating the highest level of safety and lowest investment risk. BFL FDs have also a rating of CRISIL AAA/ STABLE, which is another reason to invest. You can invest Rs. 15,000 to Rs. 5 crore- in our FD and earn competitive returns of up to 8.60% p.a. Mentioned below are some of the different fixed deposits that Bajaj Finance offers to suit your convenience and investment needs.

Fixed deposit for customers below the age of 60

All investors below the age of 60 can apply for a fixed deposit and earn returns up to 8.35%. Some of the key features of this are:

  • Interest ranges from 7.16% p.a. to 8.35% p.a.
  • Choose investment amount from Rs. 15,000 to Rs. 5 crore.
  • You can choose a tenure of 12 to 60 months.
  • Minors can apply for fixed deposit with the help of a guardian.
  • You can choose flexible payout option for interest payment on monthly, quarterly, half-yearly, or yearly basis.
  • End-to-end online application process.

Fixed deposit for senior citizens

Customers above 60 years of age, can also apply for a fixed deposit and earn returns up to 8.60% p.a. Some of the key features include:

  • Interest rate from 7.39% p.a. to 8.60% p.a.
  • Additional rate benefits of up to 0.25% p.a. p.a. for senior citizens.
  • Get regular income after retirement on monthly, quarterly, half-yearly, or yearly basis, with flexible payout option.
  • Invest from the comfort of your home, with an end-to-end online application process.

Fixed deposit for NRIs

All Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Persons of Indian Origin (PIOs) with Non- Resident Ordinary Account (NRO) accounts can also apply for a fixed deposit with Bajaj Finance offline. You can get in touch with our customer care executives to apply.

  • Deposit an amount for a fixed tenure and earn at up to 8.00% p.a.
  • Tenure ranges from 12 months to 36 months.
  • Payment is accepted only through cheque or RTGS/ NEFT from an NRO bank account.
  • You can choose flexible payout option for interest payment on monthly, quarterly, half-yearly or yearly basis.

Systematic Deposit Plan (SDP)

If you are looking for a regular monthly deposit scheme, then choose Systematic Deposit Plan. It allows you the flexibility to make regular deposits for the tenure of your investment.

  • Make regular deposits of Rs. 5,000 to Rs. 5 crore.
  • The tenure ranges from 12 to 60 months. The deposits may vary based on the Scheme chosen.
  • Choose Single Maturity Scheme to receive both investment amount and interest for all deposits at the end of tenure.
  • Choose Monthly Maturity Scheme to receive the investment amount and tenure for each deposit on completion of each deposit tenure.
  • The interest rate on each deposit may vary based on prevailing FD rates.
  • Additional rate benefits of up to 0.25% p.a. p.a. for senior citizens.

Advantages of fixed deposit

Investors looking to invest in fixed deposit can get following benefits:

  • Profitable returns: The interest rate on a fixed deposit is fixed at the time of investment. So, the returns are predictable and can be determined using the FD calculator.
  • Safety: Fixed deposits are considered a low-risk investment option, as they are typically offered by banks and other financial institutions that are insured by the government. You can check the ratings of different fixed deposits to ensure security and safety of your deposit.
  • Flexibility: Fixed deposits typically offer a range of tenures, allowing investors to choose the term that best suits their needs.
  • Liquidity: Most fixed deposits can be easily liquidated before maturity, although there may be a penalty for early withdrawal.
  • Higher interest rate: Fixed deposit generally offers higher interest rate compared to savings account.

Who can invest in a fixed deposit?

If you are a new investor, fixed deposit is one of the best options for you, offering low-risk, high returns investment. As FDs offer profitable returns, there is almost no risk of principal loss, however the rate of return is limited as compared to other high-risk options.

All Resident Indians, Sole proprietorships, Partnership firms and companies, Hindu Undivided Families (HUFs), clubs, associations, societies, and family trusts can apply online for Bajaj Finance Fixed Deposit.

Non-Resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI) can connect with our representative or write to us on wecare@bajajfinserv.in.

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