How Can We Earn More From Fixed Deposit?


About 95% of the households in India prefer Fixed Deposits as an investment option for higher returns. Even though the returns on your deposits are pre-decided, it helps you in drafting a plan of action and work accordingly. For instance, if you are planning for something important/ have a goal to meet, these returns come into handy.

If you want to enhance your deposit earnings, follow the steps given below,

Make a wise choice

Make sure to choose a viable lender, who offers you a higher rate of interest. If you have an Interest Rate of 7 or above, you are good to go. You can select Bajaj Finance Fixed Deposits to ensure higher returns, with additional security and stability.

Go in for a company-driven deposit

Most of the financial institutions offer company Fixed Deposits. The benefits that they provide are higher returns and flexible tenures, along with a chance of earning more.

Invest in a variety of Fixed Deposits

Once you do, you will gain multiple varieties of Interest Rates, and this will act like the ‘safety jacket’ against all the risks, lead to tax reduction, help you gain higher returns and give you a useful maturity period.

With multiple Fixed Deposit in hand, here are few tips that you can take into consideration, in order to manage them all at once,

  • Ladder your deposits
  • Reinvest
  • Renew your Fixed Deposit
  • Do not opt for premature withdrawals
  • Invest in Fixed Deposits that are short-term
  • Invest in a cumulative Fixed Deposit

Opt for a Cumulative Fixed Deposit

Even though a non-cumulative Fixed Deposit pays you periodically, a cumulative Fixed Deposit lets the interest pile up over the tenure.

Reinvest your income, with regards to interest

In order to make your interests grow, it is important for you to reinvest the sum which you get during maturity.

Note: If you are planning to invest in Fixed Deposits to become wealthier, you need to be aware of the lender’s renewal policy and choose the right financier to meet your needs and requirements.

Increase your interest – online

If you open an account online, for instance, on Mahindra Finance, your Interest Rate automatically jumps to 9%, to what it is, if you would have opened an account physically – 8.75%. This is also feasible for those who might not live within the proximity of the bank, opening an account online will be your ‘golden ticket.’

Form 15g and 15h

If you do not have a taxable income, submit Form 15g and 15h, as it would ensure that there are no tax-cuts and would improve your returns.

These forms are self-declaration forms, stating an individual’s income (whether it is below the taxable limit, thereby, exempting him/ her from tax).

Note: These forms must be only submitted if your net income is below INR 2.5 Lakhs and do not submit the form if you are liable to pay tax.

Keep your parents as the beholder

If your parents come under the senior citizen category, they will receive an additional interest of 0.50%. If you do not have an income that is taxable, opening an account on the name of your parents is a wise choice to make.

On a general note, you can earn much more interest, owing to senior citizens. The eligibility criteria under the same are:

  1. Age: 60 and above
  2. Tenure: 7 days-10 years
  3. Rate of Interest: between 0.25% – 0.75% higher
  4. Loans are an option
  5. In case of premature withdrawal, the penalty is imposed

Banks providing Fixed Deposits,

Banks Rates of Interest Rates of Interest for Senior Citizens
SBI 3.30% – 5.70% 3.80% – 6.50%
ICICI Bank 3.25% – 5.75% 3.75% – 6.25%
HDFC Bank 3.00% – 6.00% 3.50% – 6.50%
Axis Bank 3.50% – 6.10% 3.50% – 6.75%
Kotak Bank 3.00% – 5.60% 3.50% – 6.10%
Citibank 2.75% – 4.00% 3.25% – 4.50%
IDBI Bank 3.10% – 5.90% 3.60% – 6.40%
OBC 3.50% – 5.75% 4.00% – 6.25%
PNB 3.50% – 5.75% 4.00% – 6.25%
Indian Overseas Bank 4.50% – 5.75% 5.25% – 6.50%
UCO Bank 3.90% – 5.75% 4.15% – 6.25%
Yes Bank 5.00% – 7.50% 5.50% – 8.00%
Bajaj Finserv 7.40% – 7.60% 7.65% – 7.85%
Corporation Bank 4.00% – 5.90% 4.50% – 6.40%
HSBC Bank 2.50% – 4.25% 3.00% – 4.75%

By keeping the tips and requirements in mind, Fixed Deposits can be a safe mode of investment, if the choice is made wisely.

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