All about fixed deposits

Offered by banks and NBFCs (non-banking financial companies), a fixed deposit is an instrument through which you grow a lump sum over a fixed tenor at a fixed interest rate and with the utmost safety. It is a safe investment option that guarantees consistent interest rates, offers special interest rates for senior citizens, multiple interest payment options, and no market-related risks, with income tax deductions.

The interest rate remains unaffected by market fluctuations and you get guaranteed returns on maturity, that is, after the lock-in period. You can choose to get your interest on a periodic basis, or at maturity. Usually, the defining criterion for an FD is that the money cannot be withdrawn before maturity, but you may withdraw it after paying a penalty.

Features and benefits of fixed deposit

  • The returns are assured and not affected by market fluctuations
  • There is little to no risk of loss of principal
  • FD interest rates offered by NBFCs are higher than those of banks
  • FDs can be easily renewed, and you can also reap additional rate benefits on renewing your deposits
  • FDs offer loan against FD up to 75% of the deposit amount
  • Tax is deducted at source on the interest income as per the Income Tax Act, 1961. If your total income is not taxable, you can avoid TDS by submitting (Form 15G Form 15H if you’re a senior citizen)
  • You can opt for periodic interest payouts to manage your monthly expenses
  • Senior citizens often get higher FD interest rates

Features of Bajaj Finance Fixed Deposit

Interest rate

up to 7.75% p.a.

Minimum tenor

1 Year

Maximum tenor

5 Years

Deposit amount

Min- Rs. 15,000

Application process

Easy online paperless process

Online payment options

Net Banking and UPI

Why invest in a Bajaj Finance Fixed Deposit?

Bajaj Finance offers some of the highest FD rates in India, up to 7.75% p.a., and you enjoy high investment safety here because of the Highest Credit Ratings - CRISIL AAA/STABLE and [ICRA]AAA(Stable). You can invest for a flexible tenor and start with a sum of just Rs. 15,000. By investing in a Bajaj Finance FD, senior citizens can also reap interest rate benefits up to 0.25% p.a. on their deposits.

Frequently asked questions

Can I open an FD online?

Yes, you can invest in an FD online by choosing to park money in a Bajaj Finance online FD. You need to enter a few basic details for opening an FD account online. To login by providing your mobile number, you need to enter the OTP.

If you're an existing customer, verify your details and enter nominee details to continue. If you are a new customer, complete your KYC by providing PAN or Aadhaar or uploading documents.

Enter the deposit amount, tenor and interest payout type, along with bank account details.

Choose to pay via Net Banking or UPI. For investment above Rs. 1,00,000, only Net Banking option is available. Upon successful payment, your deposit will be booked, and you'll receive an acknowledgement via email and SMS within 15 minutes.

How can I save money on a fixed deposit?

A fixed deposit allows you to invest your funds for a fixed term and earn returns at a fixed interest rate. The interest rate on your FD is higher than a savings account so that you can grow your savings furthermore.

Here's how you can invest in FD to save money easily.

  • If you have a surplus amount to invest, you can split it into multiple FDs with different tenors and earn interest for every deposit
  • FD interest payment is received at maturity, or you can choose to receive interest on a monthly, quarterly, half-yearly or annual basis to fund recurring expenses
  • Save monthly with Systematic Deposit Plan, with deposits starting just Rs. 5000 per month

If you're looking to raise funds for emergencies, don't liquidate your savings. You can avail of a Loan against FD to cater to urgent financing needs.

Can I liquidate my FD online?

Bajaj Finance enables users to liquidate their FD online at their convenience. There is a fixed lock-in period of 3 months, during which the deposit cannot be liquidated. If the amount is withdrawn post 3 months but before 6 months, the depositor can only receive the principal amount. No interest is earned if the amount is withdrawn during this period.

On withdrawing after 6 months, the interest payable is 2% p.a. lower than the applicable interest rate, at which the deposit was booked.

While premature withdrawal is always an option, it is better to avail of a Loan against FD to cater to urgent expenses.

Is fixed deposit a risky investment plan?

Fixed deposit is one of the safest investment avenues, unaffected by market fluctuations. However, there may be risks of loss of principal or delays in payments if you don't choose your issuer wisely.

It is best to select a financier with high credibility, rated by credit rating agencies like CRISIL and ICRA. Also, check the financial status, market reputation, CRISIL status and profile of the institution before investing to ensure your money stays safe.

Consider using FD Calculator to plan your finances if you’d like to know your maturity amount and returns on your FD in advance.

Which is the best investment plan to park your money in right now?

Individuals looking to find a balance of steady growth of savings with the highest safety must consider investing in a Bajaj Finance FD, which offers lucrative interest rates up to 7.75% p.a., all from the comfort of your home.

As one of the best investment plans, one can look for the highest safety of one's Deposit with Bajaj Finance, with accreditation of the highest safety ratings of FAAA by CRISIL and MAAA by ICRA. These ratings indicate the highest safety of deposit, with the assurance of timely payouts.

In a market ridden with high volatilities and fluctuating stock indices, it is best to allocate a portion of your savings in a Bajaj Finance online FD, which offers inflation-beating returns and the safety of your deposit.

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