A fixed deposit is an investment that helps you earn income and grow your savings. It is a financial instrument that is not market linked so it isnt volatility, and hence has the potential to give you great returns on your investment. Fixed deposits are provided by state and commercial banks or by Non-banking Financial Ccompanies (NBFCs) or by Indian Postal Services. Indian Postal Services offer the Post office Fixed Deposit.Fixed Deposits are in every wway a low risk investment as they are not tied up to the market and hence help you with safer better returns.
It also becomes a source of fixed income as you grow older and helps you for your retirement plans. The correct type of fixed deposit with hih interest rate and low risk is bound to help you with your short term as well as your long term financial planning with ease. Some Fixed Deposits have the highest interest rates in the country and are comparably, Bajaj Finance Fixed Deposit is leading with a fixed deposit interest rate of up to 6.75%.
You can maximize your returns by investing in the perfect Fixed Deposit that gives you not only highest interest rates, but also various other features that help you to continue growing your money. These unique features are very handy to grow your money faster and whenever needed. Bajaj finance fixed deposit scheme comes in at this point to help you with the best fd plans to grow your money. It has one of the highest returns on Fixed Deposit up to 6.5%.
Infact FD interest rates go up to 6.75% for senior citizens with additional benefits. This helps senior citizens during their retirement period. Not only this, the Bajaj Finance Fixed Deposit scheme has an option for auto-renewal so that you dont have to worry about investing again and again after your tenure of investment is complete. Bajaj Finance Fixed Deposit scheme also gives you an option to choose between a cumulative fixed deposit and a non-cumulative fixed deposit.
You have to choose between a cumulative and non cumulative FD type as it makes a difference on the amount of income you earn from interest. A cumulative fixed deposit gives you the complete interest earned on the investment and the principal amount invested together at the maturity date. Hence, the interest on this is compounded annually. On the other hand, a non-cumulative fixed deposit gives you interest every month according to your interest rate. Hence this interest is not compounded annually. Hence, more interest will be earned on a cumulative FD type while a non-cumulative FD will give you consistent returns. Non-cumulative fied deposit is more suited for a retired person looking for monthly income.
Once your deposit reaches its maturity, you should think of renewal of the Fixed deposit so that you can maximize your gain on this high-interest income opportunity. Bajaj Finance has an auto-renewal feature that allows you to renew the deposit while choosing them.
Bajaj Finance Fixed Deposit also has a few other features such as a minimum deposit amount of just Rs. 25,000 and hence you can open a fixed deposit with just Rs. 25,000.
To earn more yet keep Fixed deposit as a good tool for liquidity, you should use the ladder depositing scheme where you invest in multiple FDs with different tenure. Now how this helps you is that you will be easily able to cash in some of your money every year for your need. Another benefit is that it gives you multiple tax benefits as you invest different amount every year and your interest income earned stays below the tax bracket.
Coming to taxes, it is yet another way to increase your interest income. You should file your tax returns on time which will help you be up to date on tax laws and you can also get tax exemptions for your Fixed Deposit returns. You have to fill form 15G or 15H depending on your age bracket to avail tax benefits and increase your interest.
In conclusion, the best financial advices you can get to for high interest is to choose Bajaj Finance fixed deposit and earn highest income while also investing using the ladder investing method to maintain liquidity and also choose cumulative fixed deposits for compounded returns and finally file your taxes on time and get exemptions.