How to Get the highest FD interest rates in India in 2021?

Fixed Deposits (FDs) are one of the most convenient and popular investments in India. Assured returns at lower risks make FDs the most preferred investment option among all investor classes. In fact, as per financial planning rules , fixed income instruments like FDs must comprise a portion of your investment portfolio. Even though they are subject to interest-rate risks, the losses arising out of the same are comparatively lower. 

Different financial institutions offer different FD interest rates 2021. The FD interest rate also varies depending on other factors like investment tenor, FD type, interest-payout frequency, etc.

There are some tips that you can follow to maximize your returns from FD investments. They are described in consecutive paragraphs.

Getting the highest FD interest rates in India in 2021

You can get the highest FD interest rates by doing the following:-

 

  • FD duration

Usually, the longer the FD investment tenor, the higher is the FD interest rate. The FD interest rates will increase progressively with longer investment periods. Bajaj Finance offers a minimum interest rate of 6.15% p.a on 12-month FDs to a maximum of 7.25% p.a on 60-month FDs. 

 

  • FD Type

FDs are categorized into two types – Cumulative and Non-cumulative FDs. Cumulative FDs give a higher rate of return than non-cumulative FDs as the interest accrued is reinvested. The power of compounding is truly visible in cumulative FDs. 

In non-cumulative FDs, as the interest accrued is paid-out periodically, only the principal amount is compounded. Thus, the gains from non-cumulative FDs are lower than those from cumulative FDs.

Bajaj Finance FD interest rates are in the range of 6.15% – 7.25% p.a. for cumulative FDs and 5.98% – 7.25% p.a. on non-cumulative FDs. Interest rates vary as per your age and investment period. For non-cumulative FDs, the interest pay-out frequency further alters the FD interest rate.

The attractive FD interest rates offered by Bajaj Finance will help you accumulate a lumpsum corpus faster.

Small investors can opt for the Bajaj Finance SDP scheme. You need to set aside just Rs 5000 per month to invest in this scheme. The SDP is a variant of the regular FD scheme with features of a SIP mutual fund. It enables you to even out interest rate risks as every monthly deposit will carry varying interest and maturity dates. Thus, it is a one-stop solution for minimizing risks and earning lucrative returns.

 

  • Customer type

Your age determines the customer category you fall into. If you are aged below 60 you are a non-senior citizen, and if aged above 60 you are a senior citizen. Usually, senior citizens are offered a higher rate of interest than non-senior citizens.

Bajaj Finance offers lucrative FD interest rates up to 7.10% p.a to non-senior citizens and up to 7.25% p.a to senior citizens. Bajaj Finance senior citizen FD interest rate is one of the best FD rates in India.

 

  • Mode of investment

The FD interest rates also vary as per the mode of investment – online and offline. Bajaj Finance offers an additional return of 0.10% p.a to non-senior citizens for all investment horizons and FD types. So, if you are aged below 60, open a Bajaj Finance FD online to get additional returns. Besides, you will get an extra 0.10% p.a when you auto-renew your FD online.

Moreover, the Bajaj Finance online FD application process is very easy and straightforward. It saves your time, money, and energy otherwise spent on physically submitting your application and supporting documents.

Final word

Following the aforementioned tips will help you maximize your returns from FD investments in 2021. Bajaj Finance FD is definitely a good option to consider given its attractive FD interest rates and a wide range of value-added benefits.