There are only a few investment instruments that offer extensive growth to your savings at a considerable interest rate along with the safety of capital. Fixed deposits are the most preferred choice from these instruments. No one can control the external factors in the financial market and certain economic conditions. Reserve Bank of India (RBI) regulates the monetary aspects of the country. But depositors can enjoy higher returns if they consider some aspects of internal factors. Majorly considerable factors are as follows that influence FD interest rates:
Fixed deposits are available for 7 days to 10 years. Depositors can determine their financial goals and choose the tenor accordingly. A depositor with a long term financial goal will be the most benefited depositor with fixed deposits. Longer the tenor you choose, higher the interest will be applicable to your FD account. It is suggested to invest your spare funds for a long term lock-in period so that you can be benefited with the power of compound interest. If you are not sure about the tenor to be chosen, you can use a fixed deposit calculator available online for free. You can check how much you will get at maturity after a certain period. Using Bajaj Finance FD Calculator, you can calculate returns and maturity amount within a few seconds.
As you know, usually senior citizens are the privileged depositors in various investments. Fixed deposits rates are also higher for senior citizens than other depositors. You can open an FD account in the name of your parents to earn higher interest. Senior citizens FD with Bajaj Finance can provide you with a higher interest rate of up to 6.85%, which is 0.25% higher than regular FD interest rates.
The investment amount is an important factor to determine applicable interest rates on your FD account. The higher the amount is available to make a deposit, the higher the interest rate will be applicable. If you have accumulated a significant amount, invest it in FDs to ensure safety and guaranteed higher returns over a period. A retiree, who is really concerned for his retirement funds, must consider fixed deposits. FD calculator India will be proved a very helpful tool to know the returns on an amount even before investing. Bajaj Finance FDs require a minimum deposit of just Rs 25,000. You can also invest in Systematic Deposit Plan from Bajaj Finance starting at Rs. 5,000 per month.
Every fixed deposit carries a maturity date to receive the principal amount along with total interest income. But the frequency of interest payouts can be selected by the depositors. They can choose monthly or quarterly or half-yearly or annual to get interest payouts in their account. If you do not need a frequent interest income in your account, better to get the entire amount of interest on the maturity date. In this way, your funds will earn compound interest and you will have higher returns. NBFCs like Bajaj Finance offer a maximum rate of 6.85% for senior citizens for a tenor of 5 years.
Fixed Deposit Issuer
No doubt that your interest rates will be determined as per the prevailing economic condition. The interest rate on your FD account will be fixed at the time of opening the account and will remain unchanged until the maturity date. Therefore, you should choose a financier carefully. Choose a financial institution that is offering a higher rate of returns and ensure the safety of your capital also. Moreover, investors choose company fixed deposits i.e FD with an NBFC like Bajaj Finance because they offer higher interest rates than bank FDs.
Interest Rate Privileges
Look for a financier that offer some attractive benefits on FD interest rates. There are some NBFCs like Bajaj Finance that offer additional FD interest rates to their customers such as additional interest rates on online investing, on auto-renewals etc.
The Bottom Line
Depositors can find out some dynamic growth opportunities for their investments. Keep research in practice to enjoy progressive wave even for investments with assured returns.