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Best FD Interest Rates: Check Options with the Highest Interest Rates in India

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With the new COVID-19 variant Omicron posing a threat to India’s economic recovery, exploring options to make the right investment and stay afloat of the rising inflation is essential. Despite declining interest rates on bank account savings, there are still some avenues that can give you higher interest rates and help you earn good returns amid economic uncertainty.

Company fixed deposits can be an option for investors to explore as non-banking finance companies offer lucrative interest rates.

The Reserve Bank of India has taken a slew of measures in the last couple of years and avoided any change which might hamper demand and investors’ sentiments. The RBI has kept the repo rates unchanged at 4% in its latest monetary policy review meeting.

It is the time to make the most out of this situation, and as an investor, you need to know the market in and out daily. Currently, public and private banks and housing finance companies are offering interest rates between 5.75% and 7.48% per annum on company fixed deposits. It is higher than what one usually gets in FDs and bank savings.

Investors should also not forget to check the credit ratings of the company FDs and are advised to invest in only those companies that carry AAA, AA, and AA+ ratings from agencies like CRISIL, ICRA, CARE, etc.

Bajaj Finance FD investment scheme is the best you can go ahead with.

Bajaj Finance FD interest rates

The interest rate determines how much money you earn on your fixed deposit. The percentage of what you make on the principal deposited (or accumulated). You earn interest at the rate of interest at which you lock your deposit through the entire tenor.

Bajaj Finance offers attractive FD rates up to 6.80% p.a. for citizens aged below 60. Senior citizens get an additional rate benefit up to 0.25% p.a. on their deposits. Invest in a Bajaj Finance Fixed Deposit for a fixed tenor as per your convenience and grow your savings at high FD interest rates. With market-linked instruments, one needs to have a significant risk appetite as the volatile nature of the market can affect returns. However, Bajaj Finance FD offers high FD rates and the security that investors’ money is entirely safe and remains unaffected by market conditions.

Factors that affect FD interest rates

Many factors affect FD interest rates, some of which are given below:

  • Deposit Tenure: The lower the tenor, the lower will be the interest rate and the higher or medium range the tenor, the higher the interest rate will be.
  • Deposit Amount: Higher deposit amounts will fetch you higher interest rates, especially bulk deposits exceeding Rs. 1 crore.
  • Depositor type: Senior citizens typically get 0.25% to 0.50% additional interest rate on fixed deposits.

Bajaj Finance FD Calculator

While putting resources into a proper store, your store acquires revenue according to the predominant FD loan cost. This interest continues to build over the long run and assists you with developing your reserve funds. Financial backers hoping to gauge their FD development sum, premium procured, and payout sum can utilize the Bajaj Finance FD Calculator to design their speculation.

Fixed Deposit Interest and Income Tax

  • The income you earn on your FD is termed income from other sources, and it is fully taxable.
  • Banks will not deduct TDS if your interest income from fixed deposits is less than Rs.40,000 in a year.
  • You need to submit Form 15G and Form 15H with the bank at the beginning of the financial year. Banks will not deduct TDS following the form submission.

Conclusion

Investing money is a smart way to grow your savings. The goal is to earn as much as your liquidity needs and your capacity to take on risks.

 

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