Despite the availability of several investment options in the market, FDs hold relevance even today. It is due to the steady investment returns and safety of the investment provided by fixed deposit plans. FDs are offered by numerous financiers in India. Most of them offer an attractive FD rate of interest and convenient investment methods. Therefore, choosing the right FD can be a challenging task for you. Here are a few tips that could help you to choose the best online fixed deposit according to your investment plans:
An FD provider who allows you to open an FD account online saves your time and it proves to be convenient as well. With an online system, you can transfer your corpus from a savings account to an FD account easily.
For instance, Bajaj Finance FD comes with an investment system that can be completed online from start to finish. By filling the online FD form, you can initiate the process and the CKYC process allows you to complete the documentation online.
The online payment options like UPI and net banking ensure that you don’t break a sweat while investing in FDs. Moreover, your deposits can grow by a 0.10% higher FD interest rate on choosing this online system.
Tenor & Rate of Interest
A tenor that accommodates your liquidity needs and investment plans can be ideal for you. The rate of interest determines the interest income that would be generated after tenor completion.
The option of picking a tenor from 12 to 60 months is available with this FD scheme. The FD interest rate that goes up to 6.75% allows your deposits to generate enough interest till maturity.
The below table shows the difference in maturity amount and interest gains provided by bank FDs and Bajaj Finance FD if you invest Rs. 35,00,000 for 5 years:
|FD plan||Deposit Amount||Tenor||Rate of Interest||Interest||Returns||Growth in Investment|
|Bajaj Finance FD||Rs. 35,00,000||5 years||6.75%||Rs. 13,51,851||Rs. 48,51,851||38.62%|
|Bank FD||Rs. 35,00,000||5 years||5.5%||Rs. 10,99,233||Rs. 45,99,233||31.40%|
The substantial difference in returns will help you secure your future investment goals.
FDs offer much better liquidity than the National Pension System, PPF, EPF, and some other investment options. Higher liquidity means that you can utilize your investment when you need money urgently.
Bajaj Finance FD allows you to liquidate your deposits once they complete the initial period of 3 months. Allow a consistent growth for your deposits as loans can be received against deposits without pledging a security. The loans can be obtained without pledging security and you can apply for up to 75% of your deposit amount as a loan.
Depositing in multiple FD accounts
Apart from providing the best FD rates in India, Bajaj Finance FD also lets you invest in multiple FD accounts at the same time. It means that the accumulated corpus can be split into smaller chunks and you can lock in each deposit for a tenor you prefer. Also, a single cheque can be deposited against all the FD accounts.
By investing in several FDs, you can ensure smoother liquidity. During a financial or medical emergency, you can withdraw one deposit instead of disturbing your entire investment. Also, if the FD interest rates go up in the future, you can deposit some of your matured FDs at a higher interest rate.
Bajaj Finance FD gives a higher FD rate of 0.25% to investors older than 60. Assess the safety offered by Bajaj Finance FD from the fact that leading credit rating agencies such as CRISIL and ICRA have provided it with high ratings for providing a stable and safe investment option to investors.