FD Rates 2020: Latest Fixed Deposit Interest Rates in India"

 Fixed deposits are among the most popular investment options in India because they offer stability to your investment amount. However, a higher FD rate is required to grow your deposits at a fast rate..

The interest rate of FDs varies from bank to bank. The bank FD rates have been reduced by many points this year due to the global economic uncertainty. Therefore, you must first compare FD rates offered by various financiers like banks, finance firms, and postal FD schemes before finalizing your decision.

Let’s see some ways through which you find the highest FD interest rates 2020:

Explore Corporate FDs

The bank FD rates are not high enough and therefore, you can think of corporate FDs that provide a better interest rate. You can invest in Bajaj Finance FD as its fixed deposit interest rates are as high as 6.85%. 

Use an FD calculator 

The simplest way to compare the current FD rates is to check the FD calculator of various financiers. An FD calculator shows the interest rate applicable as per the tenor, FD type, and customer category chosen by you. 

If you are satisfied with the interest rate, you can proceed to calculate the maturity amount as well.

Capitalize on the FD features & benefits 

Even though the existing FD rates are not as expected, you can capitalize on some of the other features and benefits of FD schemes to earn better returns. 

For instance, an extra 0.25% FD rate is given to senior citizens by Bajaj Finance. Sr. Citizen Saving Scheme also offers a high interest rate but it can be extended by only 3 years once it completes the initial tenor of 5 years. 

On the other hand, Bajaj Finance allows you to re-invest your returns as many times as you want. Even the option of auto-renewal is provided in the online FD form which renews your FD automatically once it matures. You will also get a 0.10% higher interest rate for using the online account opening process. 

Do not commit all your savings to one FD 

Instead of committing your entire savings to one FD, you can divide the amount into multiple FD plans. See to it that each FD has a different tenor and select the maturity dates in such a way that they complement your investment goals as well. 

This is known as laddering deposits and it helps you to manage your short term financial needs while proceeding towards your long term financial goals. The multi-deposit facility of Bajaj Finance can be utilized to invest in different FD plans and types at once. 

Suppose that you are planning to buy a house after 10 years but now you also want to purchase a car after three years. To achieve both goals, you cannot deposit your entire savings in one FD. Instead, you can split your corpus into two parts and invest it into separate FD plans to reach both the goals simultaneously.

Let's say you have Rs. 2000000 in hand. Now, you can invest Rs. 5 lakhs in a 3-year Bajaj Finance FD plan, and the remaining amount can be invested in 5-year FD plan by setting the option of auto-renewal.

This means that the returns of your 5-year FD can be reinvested once again after maturity. To gain maximum returns, it is wise to reinvest the entire amount (interest+principal) at maturity. The below tables shows the kind of returns you can expect from these FD plans

Bajaj Finance FD plan 

Amount 

Tenor 

Interest rate 

Interest 

Maturity Amount 

3-year FD

Rs. 5,00,000

3 years

6.85%

Rs. 1,09,949

Rs. 6,09,949

5-year FD

Rs. 15,00,000

5 years 

6.85% 

Rs. 5,89,122

Rs. 20,89,122

Thus you have seen that the Bajaj Finance FD rates are high enough to provide decent growth for your savings if you invest smartly. It is safe to invest in this FD as CRISIL and ICRA have provided high ratings to it for securing the invested amount of the depositors. 



FD Rates 2020: Latest Fixed Deposit Interest Rates in India" FD Rates 2020: Latest Fixed Deposit Interest Rates in India" Reviewed by Twinkle on 23:08:00 Rating: 5
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