A fixed deposit (FD) is a term deposit offered by banks and other non-banking financial institutions (NBFCs) like Bajaj Finance. They offer better interest rates than savings accounts and do not compromise one’s returns like other investment alternatives.
FDs are the most secured investments among other risk-free investment options. Interest received on FD can be paid regularly or reinvested depending on the preference of the investor.
However, current market situations and RBI measures are leading to a decline in current FD rates. But don’t worry…later in this article, you can find the list of banks, NBFCs and post offices providing the highest FD rates in India still.
Things to keep in mind before calculating the highest FD rates in India
- The higher the amount, the higher the interest rate.
- The higher the deposit, the higher the interest. If you opt for cumulative fixed deposits you can get higher interest.
- Even if you can increase your interests on a monthly, quarterly, half-yearly, or annual basis, the amount of your interest will fall on the frequent compounding of interest rates.
- Existing Customers and Senior Citizens get the highest FD rates in India.
- Important Regulations relating to Fixed Deposit Interest Rates
- Timely closure: Closing timely means closing a fixed deposit account only during the maturity period. When the maturity date closes, the bank will repay the original amount with interest accrued over the selected term.
- Breaking the FD Account: It is the exact opposite of timely closing, here the depositor withdraws all the deposited money before maturity. Generally, breaking or premature withdrawal of FD is not allowed and is subjected to bank regulations of charging a penalty from the defaulter. However, there are some banks such as Yes Bank and Bank of Maharashtra that can waive the penalty in case of withdrawal due to certain emergencies
- Partial Withdrawal:As the name suggests, a partial withdrawal allows the depositor to withdraw some of the money from a fixed deposit account. However, in case of Bajaj Finance FDs you can cater to your emergencies without breaking your FD or withdrawing it pre-maturely. You can avail a loan against your FD i.e up to 75% of the deposit amount while keep earning interest on the rest of it.
How to calculate the highest FD rates in India?
There are two methods to calculate the highest FD rates in India. One is manual and the other is automated. The manual method of calculation includes the usage of the following formula and is very labour intensive.
The formula for calculation of the highest FD rates in India is given below:
A = P(1+r/n)^n*t, where:
- A is maturity amount: your overall returns
- P is the principal amount
- r is the rate of interest
- t is number of years, and
- n is compounded interest frequency
And the other method is automated i.e using an FD Interest rates Calculator. With the help of an FD Calculator, it is easier to calculate the amount that you will receive on maturity of the deposit along with interest and thus determine the highest FD rates in India.
Bajaj Finserv FD interest rates Calculator is one such online tool with a very user-friendly and easy-to-use interface.
What is the Bajaj Finserv FD Interest rates Calculator?
It is an online tool designed to calculate the amount of maturity that an investor should expect at the end of the chosen term for the specified deposit amount at the suitable interest rate or post office FD interest rate.
Post Office FD Interest Rates
An investment opportunity which can be benefited under Post Office Savings Schemes is known as Post Office Time Deposit Account (TD) or Post Office Fixed Deposit (FD). You can choose tenure depending on the goals you want to achieve. The postal system operated by the government in the country gives you various tenures options.
The minimum amount for opening a Fixed Deposit Account with India Post is Rs. 100. However, there is no cap on the maximum amount.
Post Office FD interest rate
| Deposit tenure | Post Office FD rates (p.a) |
| 1 year | 6.90% |
| 2 years | 6.90% |
| 3 years | 6.90% |
| 5 years | 7.70% |
Here is a list of the highest FD Rates in India offered by Banks and NBFCs based on different tenures.
| Name | Tenure of 1 year | Tenure of 3 years | Tenure of 5 years |
| Bajaj Finance | 7.40% | 7.50% | 7.60% |
| SBI | 5.25% | 6.00% | 6.25% |
| ICICI | 4.00% | 6.5% | 6.5% |
| Citi Bank | 3% | 5% | 5% |
| Axis Bank | 3.5% | 6.7% | 6.7% |
| HDFC Bank | 3.5% | 6% | 6% |
| Canara Bank | 4.20% | 6.20% | 6% |
| HDFC Bank | 3.5% | 6% | 6% |
| IDFC First Bank | 4% | 4.5% | 4.6% |
With CRISIL’s FAAA/Stable rating and ICRA’s MAAA (stable) rating, Bajaj Finance Fixed Deposits are the safest investment option to park your savings.
Apart from the highest FD rates in India for all tenures, Bajaj Finance FD provides additional benefits such as:
- The facility of loan against deposit
- Online application and maintenance of FD account
- Allows premature withdrawal, and
- Auto-renewal facility
You can start investing in Bajaj Finance Fixed Deposits with a minimum deposit of Rs. 25,000 and enjoy interest rates up to 7.85%.
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.