Have some money that is just lying around in your savings account? Don’t have any idea about investing? Or don’t know where to start? Or want something that gives you periodic payouts? If “Yes” is an answer to any of these questions; then the first step at starting off in this direction is Fixed Deposits or FDs. Most of us do know about investing; however, let’s take a quick look at how Bajaj Fixed Deposits help answer each of these questions.

What is a Fixed Deposit?

What is Fixed Deposit? Fixed Deposit is a financial instrument that is booked with a bank or a non-banking financial company (NBFC) for a certain period of time, which lasts until its maturity duration. Based on the period for which the FD is booked, there is a fixed rate of interest that is accumulated on the principal amount. The main advantage here is that the rate of interest in the case of an FD is much higher than the rate of interest that is provided in case of your regular savings account. Also, based on the scheme that you opt for while booking your fixed deposit, you can select the interest payout schedule of your fixed deposit.

Types of interest payout

Based on the payout mode selected, Bajaj Finance Fixed Deposits can be categorized into two categories, namely–

• Cumulative Fixed Deposits: In case of cumulative FDs, the interest is paid at the time of maturity along with the principal. The interest is compounded annually.
• Non-cumulative Fixed Deposits: For non-cumulative FDs, you can select the interval at which the interest will be paid out, i.e., annually, half-yearly, quarterly or monthly.

Let us see how you can decide if you should opt for cumulative fixed deposits or non-cumulative fixed deposits.

• Pick a cumulative fixed deposit if you don’t have any requirement of funds till the end of tenor. It will help you earn higher interest as compared to non-cumulative fixed deposit.
• In case you have a requirement for regular income and need regular interest payouts, opt for non-cumulative fixed deposits. These are best for senior citizens who need a consistent, steady source of earnings.

However, for the same rate of interest, the total returns for a cumulative fixed deposit will be higher than a non-cumulative fixed deposit. This is because, in case of cumulative fixed deposits, interest is added to the principal for further compounding.

Why should you invest in Bajaj Finance Fixed Deposit?

Bajaj Finance Fixed Deposit has been rated FAAA (stable) by CRISIL and MAAA (stable) by ICRA. These ratings offer the highest security possible for your FD investment. You can also avail some additional benefits like-

• Additional 0.35% FD interest rate senior citizens.
• More than 200 branches across India.
• End-to-end management of your FD account online via Experia- your online fixed deposit account
• Your earnings are auto-credited to your FD account upon maturity. You can earn additional renewal benefits upon renewal.
• Online FD calculator to calculate your returns, and compare various fixed deposit schemes.