Regular Fixed Deposits refer to FD schemes that offer periodic interest payouts to its account holders. When you opt for a fixed deposit, you have the option to choose between tax saving FD, senior citizen FD, cumulative FD, and non-cumulative/ regular FD. In a tax-saving FD, you can claim for tax deduction up to Rs. 1.5 lakh under Section 80C of the Indian Income Tax Act. However, the lock-in period of such FDs is 5 years. Senior citizen FD is specially designed for senior citizen applicants. Under this scheme, you can avail the highest FD rates as compared to all other types of FDs. The only prerequisite for opening a senior citizen FD is that you must be 60 years old or above. Cumulative FD allows you to accumulate the FD interest rates that are calculated on a quarterly or annual basis along with your maturity amount. You can either choose to receive the interest rates on a yearly basis or along with your maturity amount. A non-cumulative FD/ regular FD is for the people who wish for a regular and high in
come from their investment in an FD. You can choose the frequency of the FD interest payout based on your preferences. Although experts suggest opting for cumulative FD over non-cumulative FD, there are ways to earn high from your regular FD.
How to Get High Interest Rates on Regular Fixed Deposit?
Choose an NBFC
A Non-Banking Financial Company (NBFC) offers higher interest rates on FD as compared to a standard bank. You can compare the interest rates offered by both the providers online for the same product. Moreover, you can confirm the non-banking company from its credit rating. For instance, Bajaj Finance, one of the leading NBFCs is accreditated with FAAA by CRISIL and MAAA by ICRA reflecting high credibility. Such NBFCs not only offer the highest FD rates but also ensures guaranteed returns of your investment without the risk of defaulting in the repayment of the money.
Ladder your FD
FD laddering is a term used for the process involving opening of multiple FDs at the same time with different tenor at the same time. Usually, financial providers offer higher interest rates for customers with multiple fixed deposit accounts. Therefore, even if you opt for regular FD with a periodic interest payout, you can earn higher.
Use Online Calculating Tools
Today, almost all financial providers offer the facility to compute the FD interest rates, as well as the accurate FD, returns prior to the investment using the online fixed deposit calculator. You need to provide a few necessary information such as the type of FD, type of customer, tenor of the FD, and the frequency of the interest payout. The online fixed deposit calculator computes the interest rates and the maturity amount using the provided information. Financial experts always suggest calculating the returns of FD using the online tool to get an idea of the returns and manage the funds as well as the financial goals accordingly. You can easily find the online calculating tool from the website of your chosen financial provider.
Go for Long-Term Fixed Deposit
You have the option to invest in an FD for a flexible tenor ranging from 12 months to 60 months. However, in order to earn high FD rates, you can consider investing in long-term fixed deposit. Financial companies offer higher interest rates for the customers who entrust the company for a long-term investment. Even if you opt for period interest payouts, a long-term investment in an FD can earn you higher FD rates than that from short-term FDs. With Bajaj Finance, you can eliminate the hassles of long queues and never-ending documents for opening an FD account.
You can check your eligibility criteria, read the terms and conditions of the company, fill a quick application form, and submit a few necessary documents such as the KYC documents online from anywhere around the globe. Moreover, you can deposit your money online using online payment modes such as IMPS/ NEFT/ Cheque. After the completion of the application, a representative from the company will collect the copy of your application form as well as the documents from your residence. As soon as the documents and application are verified and processed, your FD account is activated. You can always keep track of your FD account using the online portal named Experia.