What is A Fixed Deposit?
A Fixed Deposit is an investment instrument offered by reputed non-banking financial companies (NBFC), wherein an investor invests a certain amount of money for a fixed period on which a fixed rate of return is assured. The deposit is linked to the savings bank account of the investor. A Fixed Deposit remains unaffected by market fluctuations.
1. Regular Fixed Deposits:
These are standard fixed deposits where the investor deposits a lump sum amount for a fixed period.
2. Tax-Saving Fixed Deposits:
These FDs have a lock-in period of five years and offer tax benefits under Section 80C of the Income Tax Act, 1961, up to a certain limit.
3. Senior Citizen Fixed Deposits:
Banks offer higher interest rates on fixed deposits for senior citizens, typically individuals aged 60 years or above.
4. Flexi or Sweep-in Fixed Deposits:
These FDs allow investors to link their fixed deposits with their savings or current accounts. Any surplus funds in the linked account above a certain threshold are automatically transferred to the fixed deposit, thereby earning higher interest.
5. Cumulative vs. Non-Cumulative FDs:
In cumulative FDs, interest is compounded and paid along with the principal amount at the maturity of the deposit. In non-cumulative FDs, interest is paid out regularly (monthly, quarterly, half-yearly, or annually) but the principal remains intact until maturity.
Important terms of Fixed Deposits
1. Interest Rates:
The interest rates on fixed deposits in India vary from bank to bank and are influenced by factors like RBI policies, liquidity conditions, and market demand. Generally, senior citizens are offered higher interest rates compared to regular investors.
2. Tenure:
Fixed deposits in India can have tenures ranging from as short as 7 days to as long as 10 years. Investors can choose the tenure based on their financial goals and liquidity requirements.
3. Minimum Deposit:
Most banks and financial institutions in India have a minimum deposit requirement for opening a fixed deposit account, which can vary depending on the bank’s policies.
4. Taxation:
Interest earned on fixed deposits is taxable as per the investor’s income tax slab rate. TDS (Tax Deducted at Source) is applicable if the interest income exceeds a certain threshold. However, for tax-saving fixed deposits with a lock-in period of five years, the invested amount is eligible for deduction under Section 80C of the Income Tax Act.
5. Liquidity:
While fixed deposits offer stable returns, they are not as liquid as savings accounts. Premature withdrawal of FDs may attract penalties, and the interest rate applicable for premature withdrawals may be lower than the originally agreed-upon rate.
6. Safety:
Fixed deposits are considered relatively safe investments because they are backed by the issuing bank’s or financial institution’s reputation and are covered by deposit insurance up to Rs. 5 lakh per depositor per bank by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a subsidiary of the Reserve Bank of India (RBI).
OUR FIXED DEPOSITS & RATES
Bajaj Finance Ltd.
| Rates (as on 03-April-2024) - Upto Rs. 5 Cr. | |||||
| PERIOD OF DEPOSIT | MONTHLY | QUARTERLY | HALF-YEARLY | ANNUAL | CUMULATIVE INTEREST |
| 12-14 Months | 7.16% | 7.20% | 7.27% | 7.40% | 7.40% |
| 15-23 Months | 7.25% | 7.30% | 7.36% | 7.50% | 7.50% |
| 24-35 Months | 7.53% | 7.58% | 7.65% | 7.80% | 7.80% |
| 36-60 Months | 7.81% | 7.87% | 7.94% | 8.10% | 8.10% |
| 18 Months | 7.53% | 7.58% | 7.65% | 7.80% | 8.05% |
| 22 Months | 7.63% | 7.68% | 7.75% | 7.90% | 8.15% |
| 33 Months | 7.81% | 7.87% | 7.94% | 8.10% | 8.35% |
| 44 Months | 7.95% | 8.01% | 8.09% | 8.25% | 8.50% |
| Additional Rates Senior Citizen 0.40% For (24-35 Months), 0.25% for Rest All The Months | |||||
Mahindra Finance Ltd.
| Mahindra Finance NRO FD Rates (as on 25-April-2024) - Upto Rs. 5 Cr. | |||||
| PERIOD OF DEPOSIT | MONTHLY | QUARTERLY | HALF-YEARLY | ANNUAL | CUMULATIVE INTEREST |
| 12 Months | 7.10% | 7.20% | 7.25% | 7.50% | 7.50% |
| 15 Months | 7.25% | 7.35% | 7.50% | 7.75% | 7.75% |
| 24 Months | 7.30% | 7.40% | 7.55% | 7.80% | 7.80% |
| 30 Months | 7.40% | 7.50% | 7.65% | 7.90% | 7.90% |
| 36 Months | 7.55% | 7.65% | 7.85% | 8.10% | 8.10% |
| 42 Months | 7.50% | 7.60% | 7.80% | 8.05% | 8.05% |
| 48 Months | 7.50% | 7.60% | 7.80% | 8.05% | 8.05% |
| 60 Months | 7.55% | 7.65% | 7.85% | 8.10% | 8.10% |
| Additional Rates Senior Citizen 0.10% For (15, 30, 42 Months), 0.25% for Rest All The Months | |||||
