A fixed deposit is a conventional investment option preferred by investors who want to earn higher returns without any potential threat to their deposits. The fixed deposit interest rates vary greatly as each of the FD plan providers such as banks, post offices, and finance firms offer different interest rates to their customers. 


The bank FD rates roughly vary from 2.5 to 5.5% whereas the post office deposit rates are slightly over that. NBFCs or finance companies might offer a better interest rate than bank FDs. However, check their reputation before depositing and invest only if you are 100% sure about the company since the market is rife with fluctuations and uncertainty.


To explore the highest fixed deposit rates you can do these things:

Check current postal FD rates

The post office provides various FD schemes and the interest rates vary according to the scheme chosen by you. Their interest rates are revised after every quarter and therefore, you will need to find out the current postal FD rates via the internet or by visiting a Post Office branch directly.

You can even use an online FD calculator to estimate the returns of these postal FDs schemes directly. For instance, you can use an SCSS interest calculator to find the returns offered by Senior Citizen Saving Scheme and for exploring the returns of Post Office Time Deposits (POTD), you can check the highest fixed deposit rates .

Also read Can I pay the original creditor instead of a collection agency?

Explore corporate FD rates

Since bank FD rates might be below your expectations, you can explore the corporate FD rates offered by different NBFCs and finance companies. At present, Bajaj Finance is offering an FD rate of up to 6.85% which is one of the best FD rates in the market currently.

In case you want to invest Rs. 1000000 in a bank FD for 5 years then you can get a maximum interest rate of 5.5% and if you lock-in the same amount in a Bajaj Finance FD for the same tenor, you will get much higher returns. To analyze how one of the highest fixed deposit rates can increase your maturity amount please check the below table:

FD type

Amount (In Rs.)

Tenor 

Interest rate

Interest earning (In Rs.)

Maturity amount (In Rs.)

Bank FD

1000000

60 months 

5.5%

314066

1314066

Bajaj Finance FD

1000000

60 months 

6.85%

392748

1392748



You not only earn more interest from this FD but you can also benefit from the below-mentioned features:

Loan against FD

In case of sudden emergencies, you don't have to withdraw your FD prematurely as Bajaj Finance offers a loan up to 75% of the FD value without any collateral.

It will enable you to keep earning from your deposits and you will also be able to avoid the penalty fee for early withdrawal of an FD.

Auto-renewal

If you are thinking of multiplying your returns for achieving your long-term investment goals, then auto-renewing an FD that offers a high interest rate can be your best option.

With Bajaj Finance, you get a high FD interest rate and the auto-renewal option FD can be selected while filling your online FD form. It means that you can avoid the hassle of filing and submitting the renewal form once your FD matures.

Also, you will get a 0.10% extra interest rate if you use the online investment procedure for investing in any of its FD plans.

Minimum deposit amount

You no longer have to collect a large corpus to earn substantial returns as Bajaj Finance allows you to invest in an FD with just Rs. 25000.

Also, there is no need to worry while investing in Bajaj Finance FD as it has received FAAA/stable rating from CRISIL and MAAA/stable rating from ICRA. These are the highest ratings that these credit rating agencies provide. This means that your investment is safe when you invest in Bajaj Finance FD.


Author Bio:



Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.