Fixed Deposit (FD) has been termed as one of the best investment schemes to grow an individual’s earnings under a safe avenue. Fixed Deposits are recognized by their high FD interest rates and assured returns. The principal amount which is due to maturity in an FD is not affected by the market rate fluctuations.

Types of Fixed Deposit Schemes-

The different kinds of Fixed Deposit schemes provided by Banks and Financial Institutions are:

     1. Regular Fixed Deposit-

This is the Fixed Deposit scheme which is the most opted investment scheme by individuals. The tenor involved in this scheme ranges from 1-10 years usually. The Return on Investment (ROI) is generally higher as compared to a savings account.

     2. Tax Saving Fixed Deposit

Under this type of Fixed Deposit scheme, the principal amount gets a tax exemption up to Rs 1.5 Lakh every year. The tenor involved in this scheme is for five years without any premature withdrawals.

     3. Senior Citizens Fixed Deposit

This Fixed Deposit scheme offers higher rate of FD interest rates as compared to the Regular Fixed Deposit. Only citizens of India who are above 60 years can avail this type of FD.

Flexible Fixed Deposit

Due to the dynamic business environment and the constantly changing requirements of an individual, the financial market has evolved to a greater extent. Financial Institutions provide individuals with Flexible Fixed Deposit or Flexi Fixed Deposit scheme to grow their investments. Flexible Fixed Deposit combines the features of a regular FD along with Savings account in its business model. This promotes the high rate of returns offered under Fixed Deposits and the high liquidity which is associated with a savings account.

Features provided under Flexible Fixed Deposit

The features provided under Flexi Fixed Deposit are-

• Flexible tenors are available to an individual under this Fixed Deposit Scheme.
• The interest rate provided under this scheme is higher as compared to the Savings account.
• Individuals have the opportunity to avail loans using their Flexi Fixed Deposit as a form of collateral.
• Flexible Fixed Deposits allows for the auto-renewals feature.
• Pre-mature withdrawals can be initiated in this scheme as per the policy of the financial institution with regards to the same.
• The Flexible Fixed Deposit scheme can be opened with a minimum initial deposit. The initial deposit varies among the financial providers.
• Opening a Flexi Fixed Deposit has become easy and hassle-free due to online account management provided by the respective institutions.

The scope of Flexible Fixed Deposit

Flexible Fixed Deposit has a broader scope as compared to Regular Fixed Deposit. It provides the individual with more flexibility in certain aspects of the scheme such as –

• More liquidity as compared to the Regular Fixed Deposit. Flexible Fixed Deposits allow for pre-mature withdrawals in their policy whereas Regular FD’s don’t enable such features.
• Flexibility in terms of the interest payouts. An individual has the opportunity to choose between cumulative and non-cumulative interest pay-outs. In cumulative interest pay-out, the interest is generally reinvested in the principal amount. In non-cumulative interest pay-out, the interest is payable on monthly, quarterly, half-yearly or on a yearly basis.
• Flexible tenors provided to the individuals opting for such schemes. Flexible tenors may be ranging from 12 months – 60 months with their concerned ROI provided under this scheme.

Optimize Fixed Deposits with Bajaj Finance

Bajaj Finance provides Fixed Deposits scheme for individuals who wish to grow their investments under a safe avenue. The feature provided under this scheme are-

• Interest rate of 8.75% – 9.10% is provided under this scheme.
• A flexible tenor is provided for a period of 12 months to 60 months under this policy.
• The company has been accredited with ratings done by a credit rating agency such as ICRA and CRISIL. ICRA has given the rating of MAAA and CRISIL has assigned the rating of FAAA. This is the highest credit rating given to financial providers from the respective credit rating agencies.
• FD calculator is provided to individuals under this scheme for calculating the maturity amount and estimating their returns in advance.
• For senior citizens, FD interest rate is 0.35% higher as compared to the regular FD provided under the same.
• The Fixed Deposit account can be opened with a minimum initial deposit of Rs 25,000/-.
• Bajaj Finance has established 200+ branches across 200 cities in India for easy accessibility.