Things To Know While Investing In A Fixed Deposit

Apart from being a safer instrument than market-linked investment options like equities, fixed deposits also provide swift growth for your investments. However, it is better to know about all the terms and aspects that are associated with FDs that can help you earn high returns without any confusion. Some of these important things are explained below:

Documents Required

If you are opening a fixed deposit account with the same bank in which you have a savings account already, you need not submit any additional documents. However, if you have chosen a different bank or NBFC, you will have to provide documents that verify your identity and address. 

Some financiers like Bajaj Finance let you confirm your identity and address online through the CKYC procedure. This online document verification process along with the online FD form that is available on their website allows you to invest seamlessly in FDs. Moreover, you also earn a 0.10% higher FD interest rate for choosing the online investment option. 

FD types

With FDs, you get two investment options or types viz. cumulative and non-cumulative FDs. The cumulative FDs let you withdraw the entire interest along with the invested amount upon tenor completion whereas the non-cumulative FDs help you earn a regular income through periodic interest payouts. 

Invest in the Bajaj Finance non-cumulative FDs for receiving interest gains periodically after every year, quarter, month, or six months. You can also invest in Bajaj Finance cumulative FD to earn a huge interest till maturity. 


A flexible FD tenor would enable you to strategize your investment goals smartly. A tenor ranging from 12 to 60 months is offered by Bajaj Finance FD so that you can plan your investments as per your requirements. 

Apart from the flexible tenor, you also get to invest in more than one FD through the multi-deposit feature. This means that you can now split your corpus into smaller chunks and invest them independently in separate FDs. The FD tenor and type can be unique for each deposit and you can use a single cheque to pay for all the FDs at once. Therefore, you can now achieve a balanced growth for your savings and multiple liquidity points without any effort. 

Interest Rate

The term deposit interest rates can differ from one FD provider to another. As bank FD rates are already low, you can deposit your savings in a high-paying corporate FD like Bajaj Finance FD. This is because it is offering an interest rate of up to 6.75% which is the highest in the FD market right now. Along with a high-interest rate, you also get to start depositing in FDs with just Rs. 25,000.

Withdrawal policy

The withdrawal policy implemented by an FD provider is the key when it comes to evaluating the worth of your FD during a crisis. While most financiers will allow you to withdraw your investment prematurely, they may also impose a heavy penalty that can wipe away your interest gains. 

You can invest in Bajaj Finance FD that lets you withdraw your deposits only on a single condition that your FD has completed 3 months from the date of investment. The penalty for early withdrawal is nominal and you can also avoid it completely by availing of a loan against your deposits. 

Extra FD rate for senior citizens

Some financiers may provide slightly better term deposit interest rates to senior citizens. For instance, Bajaj Finance FD gives a 0.25% higher FD rate to individuals who are above the age of 60. If you are a senior citizen, you can earn a higher interest payout or returns with the help of this extra FD interest rate. 


The stability of the investment is the key as you would be keen on ensuring the safety of your invested capital at all times. For that, you can check the credit ratings offered by leading credit rating agencies such as CRISIL and ICRA. The credit ratings that Bajaj Finance FD has received from CRISIL and ICRA for securing the deposits of investors are quite high. As a result, it is certainly one of the safest investment options for you in 2021.


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