5 things you should look into before you invest in an FD

Fixed deposits are one of the few instruments that tick all boxes – safety, convenience, and high returns. You can get guaranteed returns by investing in a fixed deposit. However, here are 5 things that you should consider, before investing in FD

 
5 things you should look into before you invest in an FD

Fixed deposits are one of the few instruments that tick all boxes – safety, convenience, and high returns. You can get guaranteed returns by investing in a fixed deposit. However, here are 5 things that you should consider, before investing in FD.

  1. Interest rate

A high interest rate is key to the success for your fixed deposit investment. Hence, you must examine top FD interest rates before deciding. This will help you multiply your money at a faster rate, ensuring a fruitful experience.

  1. Convenience

The benefits you enjoy from your investment shouldn’t be limited to interest rate alone. You must also check how easy it is to make and monitor your investment. In this regard, look for the option to invest online, as well as the ability to track your investment from the comfort of your home.


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  1. Credibility ratings

Often, investors are swayed by high interest rates, but this aspect of a fixed deposit is just as important. Credibility ratings show you how safe the chosen FD is, and whether or not you’ll receive the amount due to you, on time. A high interest rate is of no use if the instrument isn’t safe, so check ratings from credit rating agencies such as CRISIL and ICRA before investing.

Bajaj Finance Fixed Deposit is one of the safest investment options, with the highest credibility ratings of FAAA by CRISIL and MAAA by ICRA, which makes it a preferred investment option.

  1. Liquidity options

Investments serve as excellent financial tools, which means that the liquidity that your FD offers is another key aspect to evaluate. As the name suggests, a fixed deposit locks away your money for the tenor of the investment. However, most issuers allow premature withdrawals.

You do have to forego a portion of your interest and may have to pay an administrative fee as well. It’s best to know of premature withdrawal procedures and charges beforehand, so that you are fully aware of what you’re signing up for.

  1. Flexibility of investment

Most importantly, gauge the flexibility of the FD before you invest, as you want it to serve your needs and goals as seamlessly as possible. Typically, most fixed deposit issuers allow you to choose between frequent payouts and receiving a single payout at the end of your tenor. Ensure that the option best suited to you is offered by the FD you have zeroed in on.

When researching for the best fixed deposit to invest in, you may come across the option to invest in a Bajaj Finance Fixed Deposit. With an interest rate of 8.60%, which goes up to 8.95% for senior citizens, Bajaj Finance FD enables you to grow your savings easily.

By investing in a Bajaj Finance Fixed Deposit for 5 years, you can easily grow your savings by 51%. To understand this better, let’s assume you’ve invested an amount of Rs. 5,00,000 for 5 years. Check the table below, to see how your investment can grow over time:

Amount of Rs. 5,00,000 invested for 5 years

Customer Type Interest Rate Interest earnings Rate of returns
New customer 8.60% Rs. 2,55,299 ~51%
Existing customer 8.85% Rs. 2,64,033 ~52%
Senior citizen 8.95% Rs. 2,67,549 ~53%

Thus, your investment amount can grow by more than 50% in 5 years, thereby ensuring higher returns on your investment. By investing in a Bajaj Finance FD, you can avail the exciting multi-deposit facility, wherein you can invest in multiple FDs with a single cheque. These FDs can have different tenors and payout frequencies. In case of emergencies, if you liquidate one of these deposits, the other deposits continue to earn interest.

Bajaj Finance Fixed Deposit is one of the safest investment avenue, and it emerges as a winner amidst other fixed deposit schemes. Investing in a Bajaj Finance FD is easy, as you can simply start by filling a short online form. You can start investing with just Rs. 25,000 and reap the benefits of this FD, which is a perfect blend of safety, steady, consistent returns and convenience.

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