The RBI has lowered the repo rates considerably this year and this has compelled banks to slash down the interest rates on all fixed income instruments. The topmost banks i.e. the banks with the largest market value are offering interest rates from 2.5 to 5.5% on their fixed deposit plans.
However, this does not mean that you cannot earn enough returns through FDs. There are still some FD avenues and investment options that can generate high returns post maturity. Some of them are mentioned below:
Company FDs
The current rate of interest on fixed deposit plans offered by banks is not high enough to beat inflation. Therefore, you can invest in company FDs that provide a much higher interest rate.
For example, company FDs such as Bajaj Finance FD comes with an interest rate of up to 6.85%. As this interest rate is much more than bank FD rates and POTD (Post Office Time Deposit) it will make a substantial difference in the maturity amount.
Let’s assume that you want to invest Rs. 20,00,000 in a fixed deposit for 3 years. Now, you have three options viz. POTD, Bajaj Finance FD, and bank FD. The below table shows the returns and interest gains that these FD schemes provide:
| FD scheme | Amount (in Rs.) | Rate of Interest | Tenor | Interest Earnings (in Rs.) | Maturity Amount (in Rs.) |
| Bank FD | 20,00,000 | 5% | 3 years | 3,21,510 | 23,21,510 |
| POTD | 20,00,000 | 5.5% | 3 years | 3,56,137 | 23,56,137 |
| Bajaj Finance FD | 20,00,000 | 6.85% | 3 years | 4,39,796 | 24,39,796 |
Ladder deposits
To keep earning high interest on FDs, you can split your deposit amount and invest it in multiple FDs of varying tenors. This will not only even out the fluctuating FD interest rates but it will also help you to leverage liquidity options for investing in a high paying FD at an opportune time.
The multi-deposit facility from Bajaj Finance lets you invest in multiple FDs simultaneously. Moreover, a flexible tenor from 12 to 60 months can be selected for each FD and you can also invest in different FD types.
As the FDs mature, you can club the interest gains and invest them in a cumulative FD to multiply your interest earnings.
Higher FD rate for senior citizens
Senior citizens usually get a higher FD rate than others. Bajaj Finance offers a 0.25% extra FD rate to senior citizens whereas others can avail of an additional FD rate of 0.10% for investing in its FDs by using an online FD form. Senior citizens can opt for periodic interest returns to fund their regular expenses like medical bills, utility bills, travel plans, etc.
The auto-renewal option provided in the form lets you re-invest your returns without filing a separate renewal form.
You can check the FD returns by using a fixed deposit calculator that can be found on its official website. The FD calculator helps you to explore the range of tenor and applicable rate of interest that assist you to invest smartly as per your financial plans.
Also, you can invest in its FD plans without any confusion as it has been accredited as a stable and safe instrument by credit rating organizations like ICRA and CRISIL.
The fixed deposit rates of bank FDs have been reduced due to the repo rate cuts implemented by RBI. Therefore, all the major banks of India are providing interest rates in the range of 2.5 to 5.5%. To earn high returns you can invest in postal FD schemes but their rigid withdrawal norms and lack of flexibility in terms of tenor might bother you. You can invest in Bajaj Finance FDs that offer a higher FD rate, flexibility of tenor, multi-deposit facility, online FD calculator, etc. Bajaj Finance FD rates are up to 6.85% and it is one of the highest FD rates in the market. Also, its FD plans are safe as CRISIL and ICRA have given it high ratings for securing the deposit of the investors.
