When you invest in a fixed deposit, you invest a specific amount for a fixed tenor in exchange for interest. Here, the return on your FD is not governed by market fluctuations and is assured as per the rate indicated by the financial institution at the time of making the investment.
Thus, FDs are ideal investments for senior citizens or conservative investors as they offer security. In most cases, lenders offer at least 0.35% higher interest for senior citizens as well. So, if you wish to invest in FDs offered by reputable issuers like Bajaj Finance, then apart from a high interest earning you will also get to enjoy an array of benefits. Bajaj Finance Fixed Deposits have a CRISIL rating of FAAA that makes them extremely safe and credible. In fact, Bajaj Finance is among the very few companies in the nation that offers an incredibly interest rate on your investment. As a regular investor, when you invest in a Bajaj Finance FD, you can enjoy interest of up to 8.75%. The same FD held by a senior citizen will fetch returns of up to 9.10%. Moreover, you can also earn additional interest when you renew your FD.
Even though investing in FDs is risk-free, you should familiarise yourself with the nitty-gritties pertaining to this investment in order to make an informed decision. So, clear any doubts you may have by taking a look at this list of FAQs.
Who can invest in FDs?
Anyone except NRIs, Persons of Indian Origin, foreign citizens, charitable trusts, and entities falling under the ambit of Section 11(5) of the Income Tax Act can invest in a Bajaj Finance FD.
What are the documents required for FD?
Opening an FD account with issuers like Bajaj Finance is easy and you will only have to submit a few documents to complete the process. This list includes:
- A passport sized photograph
- Copies of KYC documents like PAN card, passport, driving license, voter’s ID, NREGA job card, or a letter issued by National Population register that bears your name and address
- A duly filled application form
Can you add a nominee to your FD?
Yes, you can add a nominee to your FD at the time of investing. You can also change your nominee by submitting a form to your issuer.
What is the additional interest you can earn on renewing an FD?
This depends from one issuer to another. With Bajaj Finance, you can earn 0.25% extra interest on your fixed deposit of up to Rs.5 crore on renewal.
What are the interest payout options that you can choose from?
You can choose to gain periodic payouts to fund your regular expenses, or you can choose to get your interest at maturity. In case you opt for periodic payouts, you can also choose monthly, quarterly, half-yearly or annual payouts, as per your needs.
How Do You Receive Your Maturity Amount?
When you invest in Bajaj Finance Fixed Deposits, the maturity amount gets credited to your bank account, which can be transferred via NEFT or RTGS.
Does The FD Interest Attract TDS?
Yes, at present FD interest income from bank and post office deposits beyond Rs. 10,000 a year attract a TDS deduction. This is about to change when the Interim Budget is implemented. In accordance with this Budget, the TDS-free limit for a bank or post office FD is set to rise to Rs. 40,000 per year.
How Can You Calculate Your Maturity Amount?
Bajaj Finance Fixed Deposit Calculator can help you compute your maturity amount easily, even before you invest. All you need to do is, fill in a few basic details, and your maturity amount will be displayed.
Can You Access Your FD Account Details Online?
Yes. You can manage your fixed deposit online. For instance, if you have Bajaj Finance FDs, you simply log into the customer portal, Experia, to view details of your investment anytime, and from anywhere.
Can You Make a Premature Withdrawal?
Yes. You can make a premature withdrawal from your fixed deposit investment. However, in this case you may have to settle for a lower interest and/or pay a penalty, depending on the issuer’s terms.
Can You Avail a Loan Against FD?
Yes. You can avail a loan against a fixed deposit at a nominal interest rate especially when you invest with Bajaj Finance. Here, the interest rate for your loan will be 2% over and above the interest rate you’re earning through the FD.
Can You Claim Tax Benefits On Repayment Of a Loan Against FD?
No. In general parlance, you cannot claim tax benefits on repayment of this loan. However, if you use the funds to buy a house then you can claim tax exemptions applicable for home loan repayment. Likewise, if you use the funds to pay for your child’s education, you are eligible to claim tax exemptions that an education loan qualifies for. To put it simply, usage of the loan determines if you can claim tax benefits.
Now that you know the ins and outs of investing in FDs, you can invest without any hesitation and grow your money. You should also consider laddering your FDs to enjoy liquidity from time to time so that you can meet your short- and long-term goals with equal ease.