Get the Best Fixed Deposit Interest Rates in India

Are you weary of the volatilities in the stock market? Are the vagaries of market-linked instruments bothering you? If yes, then you may opt for fixed-income instruments in your investment portfolio. They will not only mitigate your portfolio risk but also enhance the stability of your portfolio.

The most preferred fixed-income instruments are bonds and Fixed Deposits (FD). They carry relatively lower risks than stocks, equity funds, and hybrid funds. While the inherent interest rate risks in them cannot be ruled out, the magnitude of losses incurred from the risk exposure is often low. Thus, in the financial world, the words ‘risk-free’ or ‘riskless’ are often attached to fixed-income assets to ease the complexity of financial calculations.

Now, we will focus our discussion solely on FDs. FDs are the most preferred investment option in India among all social and investor classes. They are issued by both banks and NBFCs. Reliable return at lower risks is the USP of FD investments.

Best FD interest rates in India

The factors that determine the best FD interest rates in India are as follows:-

1. RBI policies

The apex bank of India has lowered the repo and reverse repo rates, as a part of its monetary policy to bolster economic growth. This has adversely impacted the bank FD rates. Thus, during lower interest regimes, opting for NBFC deposits is more profitable. Usually, NBFC FDs carry a higher rate of interest than bank FDs.

In India, Bajaj Finance FD is one of the best NBFC FDs with attractive interest rates and high credit ratings. 

2. Safety

With a large number of banks going kaput all over the world, you may often wonder if an FD investment is really secure. While no investment avenue is 100% safe, higher credit ratings of the issuers indicate a lesser probability of them shutting shop in the future.

Bajaj Finance is one such NBFC of repute with consistently high credit ratings of ‘AAA+’ from ICRA and CRISIL. It is also the only NBFC in India to get a rating of ‘BBB’ from international credit agency S&P Global.

3. Interest rates

This is the key factor for choosing an FD investment. As a rational investor, you will always prefer an FD with the best interest rate.  

Bajaj Finance offers one of the best FD rates in the country. You can earn anything in the range of 5.98% - 7.25% p.a. depending on your age, FD type, interest-payout frequency, investment mode, and investment duration.

Usually, you will get higher FD rates if you are aged above 60. Bajaj Finance offers lucrative senior citizen FD rates up to 7.25% p.a. With Bajaj Finance FD, senior citizens get an additional return of 0.25% p.a. for all investment horizons.

You will earn higher interest rates on cumulative FDs as compared to non-cumulative FDs. The minimum interest rate offered on Bajaj Finance cumulative FDs is 6.15% p.a. as opposed to that of 5.98% p.a. on non-cumulative FDs. 

The lower the interest-payout frequency, the higher will be the interest rate offered. You can earn up to 7.25% p.a. with the annual interest-payout option on Bajaj Finance non-cumulative FDs.

Bajaj Finance also offers an additional return of 0.10% p.a. to non-senior citizens booking or renewing an FD online. Thus, online investors will get a minimum FD rate of 6.08% p.a.

As far as investment periods are concerned, the longer the investment tenor, the higher will be the interest rates offered. Bajaj Finance offers a minimum interest rate of 6.79% p.a. on FDs with tenors of 36-60 months.

The FD rate calculator on its website will help you compute your returns accurately before investing. For example, suppose you wish to invest Rs 10,00,000 in a 3-year cumulative FD. An average bank’s FD rate calculator shows a maturity amount of just Rs. 11,71,114, considering an interest rate of 5.30%. As opposed to Bajaj Finance FD rate calculator that shows a maturity amount of Rs 12,33,650 at an interest rate of 7.25%. Thus, Bajaj Finance FD returns are clearly superior.

The Bottom Line

Bajaj Finance FD is one of the best FDs in India for both senior and non-senior citizens. Bajaj Finance FD rate calculator is an indispensable online tool for making wise investment decisions.