Fixed deposits are preferred by investors because it enables them to grow their savings at a rate which is higher than what a savings account offers. Moreover, it is one of the stable investment options as its returns aren’t affected by fluctuating interest rates.
As the bank FD rates have been lowered quite a bit, you should take many factors into consideration before investing in an FD plan. To get maximum deposits at maturity, you can focus on the following things:
Choose a high-yielding Corporate FD
If you come across an FD plan that is offering good returns, you must check all the available options that come with it. Some financiers offer an additional FD rate to senior citizens whereas some of them provide higher FD interest rates on renewing an FD.
For instance, Bajaj Finance FD will give you 0.10% additional FD rate on choosing its online investment process and if you are a senior citizen then you will be eligible for 0.25% extra FD rate than usual. This means that you can utilize these options to maximize your returns from fixed deposit.
File tax returns regularly
You must be aware of the current tax laws that are applicable on FDs as it will determine your tax liability. You must submit your tax returns on time so that you can avail exemptions that you are applicable for. Also, you can submit Form 15G/15H if you want to avail exemption from TDS deduction.
Devise an investment strategy
You will have to work on your investment strategy smartly if you want to maximize your returns. For example, if you find a high-paying FD then you can also think of renewing your FD. Or else, you can split your corpus and invest in multiple FDs with varying tenures so that you can invest your returns at a higher interest rate whenever the FD rates go up again.
Bajaj Finance FD is offering the highest FD interest rate of 7.25% currently. It is also providing the FD auto-renewal option in its online FD form. Moreover, if you want to ladder your deposits then you can use a multi-deposit facility that enables you to deposit in several FD plans at once.
Let’s say that you invest Rs. 5,00,000 in a Bajaj Finance FD. The below table shows the returns across different customer categories if you choose the maximum tenor of 5 years:
| Customer Category | Amount | Tenor | Interest rate | Interest Gains | Maturity Amount |
| Non-senior citizen (offline investment) | Rs. 5,00,000 | 5 years | 7% | Rs. 2,01,276 | Rs. 7,01,276 |
| Non-senior citizen (online investment) | Rs. 5,00,000 | 5 years | 7.10% | Rs. 2,04,559 | Rs. 7,04,559 |
| Senior citizens | Rs. 5,00,000 | 5 years | 7.25% | Rs. 2,09,507 | Rs. 7,09,507 |
Therefore, you can see that these interest rates are high enough to provide enough returns for your future plans. Its FD plans have also received FAAA/stable ratings and MAAA/stable ratings from CRISIL and ICRA respectively. Therefore, you can rest assured of your deposits after investing in its fixed deposit plans.
Fixed deposits are among the best investment schemes as they offer stability of investment and high returns. However, it is the interest rate that determines the interest gains that you would receive at maturity. Therefore, it would be a wise thing if you analyze all the available options before investing in an FD. For instance, if you are applicable for a higher interest rate for being a senior citizen or for any other specific reason then you should not miss it.
Also, investing in a high-paying FD like Bajaj Finance is important because it is offering a high FD rate of 7.25%. The other options like additional rate to senior citizens and online investors, safety of deposits, and option of investing in several FDs simultaneously, make it one of the better FD schemes of today’s times.
