Types of Fixed Deposit (FDs): Fixed Deposits Accounts Interest Rate and Calculator

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A fixed deposit helps you set aside a sum of money, which accrues over a specified period, and helps you get assured returns on a lock-in period of your choice. The option to invest in a Fixed Deposit are offered by banks and NBFCs.

Unlike market-linked investment avenues, the returns on your FD are not dependant on fluctuating stock indices, or currency values. With a fixed interest rate, you can get guaranteed returns on your fixed deposit. You can also choose your payout frequency when you choose your tenor. Your FD rates depend on the choices made on your investment and any change in the tenor, payout frequency or amount of deposit can change the interest rate applicable.

The FD Interest rates also varies for different types of fixed deposit, so it is best to understand them, so you can maximise your earnings. Here are the types of deposits you can choose from.

Regular fixed deposit

The rate of interest on a fixed deposit account is higher than that of a savings account, but still differs from issuer to issuer. A regular fixed deposit can be opened by a regular citizen looking to invest. Choose a reputed NBFC to avail of interest rates on the higher end. For instance, Bajaj Finance FDs offers interest rates up to 8.60% on a minimum tenor of 3 years with payout on maturity.

Senior citizen fixed deposit

A senior citizen fixed deposit is offered only to senior citizens. These fixed deposits come at a higher rate of interest to help senior citizens earn more income post their retirement. The interest rates on a senior citizen fixed deposit vary, depending on the issuer you choose. Bajaj Finance Senior Citizen FDs offers an interest rate of up to 8.95% on a deposit of 3 years or more when you choose payout on maturity.

Tax-saving fixed deposit

These types of deposits are those that allow you to claim tax deductions for the principal amount you deposit under Section 80C. However, these fixed deposits have a lock-in period of 5 years and do not allow premature withdrawal.

So, choose the type of deposit as per your goals, age and investment portfolio to reap high returns. Remember to compare FD offerings from different issuers and choose the highest interest rate. You can choose to start a Fixed Deposit with Bajaj Finance to enjoy high interest rates, convenient online account management, and an additional 0.25% interest on FD renewal.

What’s more, you can enjoy safety of returns on these FDs as they are rated FAAA and MAAA by CRISIL and ICRA, which attest to their high security and reliability. Use Fixed Deposit Calculator to forecast your returns and plan your investment today. An FD rates calculator can also show you the change in interest rates based on the type of deposit you choose or the increase in your tenor or capital, which helps you make the right decision with ease.