Long-term Fixed Deposits (FDs)

These are regular FDs that offer a fixed interest rate, but with a longer tenure. This often results in higher returns compared to shorter-term options. These FDs provide the same low-risk, stable investment opportunity, with the added benefit of compounding interest over a longer period. 

You can use a long-term FD calculator to estimate your returns and find investment terms that yield your desired interest payout. 

The interest rates for these FDs vary depending on the bank or Non-banking Financial Company (NBFC). Some issuers also offer higher rates to senior citizens compared to regular citizens. 

Here is a table of fixed deposit rates for long-term tenure from issuers available on Bajaj Markets:

This tool helps you determine the potential returns on your investment. It allows you to input terms like the deposit amount, long-term FD interest rate, and tenure. You could use this tool to compare long-term FD options and choose the best one for your financial needs. This online tool can be used free-of-cost and as many times as you require. 

Here is how you can use this tool: 

1. Input your principal amount

2. Select the interest rate offered by your preferred issuer 

3. Specify the FD duration  

4. Submit the details to view your estimated long-term returns

Aside from compounding interest, here are a few more benefits of investing in these FDs: 

• Tax-saving Benefits: Invest in 5-year tax-saver FDs to claim deductions of up to ₹1.5 Lakhs under Section 80C of the Income Tax Act, 1961 

• Loan Facility: Certain issuers allow you to access a certain percentage of the deposit amount as a loan and generally at lower interest than personal loans 

• Automatic Renewal: Many issuers give you the option to auto-renew your investment to ensure you continue benefiting from the higher rates these FDs offer   

• Flexible Interest Payout: Choose between cumulative and non-cumulative payout options to either receive the interest earned at maturity or intervals (monthly, quarterly, half-yearly, or annual) of your choice 

• Goal-based Savings: Preserve your hard-earned savings and earn stable returns to meet specific long-term financial goals like making the downpayment for a house or vacations 

Before booking an FD, certain eligibility criteria must be met as set by the issuer. These may include:

• You must be above 18 years

• You should be an Indian resident or an NRI

You will also need to submit specific documents, such as:

• PAN card

• KYC documents

• Aadhaar Card

• Driving License

• Passport

• Voter ID

• Address proof

Note: Eligibility and document requirements may vary by issuer. Verify that you meet all criteria with the issuer. Make sure you have the necessary documents for a seamless application process.

Selecting a longer FD tenure requires careful consideration. Here are some things to keep in mind:

• Look for competitive long-term deposit rates to maximise returns

• Choose a tenure that aligns with your financial goals, whether it’s 1 year or up to 10 years

• Opt for FDs that offer higher compounding frequency to boost your earnings

• Check the penalty for premature withdrawal and consider your need for liquidity

• Know the tax liability on interest earned, especially if you are in a higher tax bracket

• Ensure the bank or NBFC is reputable and offers secure investment options

• Decide whether you want interest payouts at regular intervals or at maturity

Here are a few ways you could maximise your returns on such FDs:

• Opt for cumulative FDs to benefit from the power of compounding since the interest earned is reinvested 

• Use the laddering method by investing in multiple FDs with staggered maturity dates to minimise tax deducted at source and diversify your risk

• Invest in tax-saving FDs that have a 5-year lock-in period to claim tax deductions on the principal amount invested 

Investing in these FDs is simple. On Bajaj Markets, you can book an FD online in minutes. Here are the steps you need to follow:  

1. Click the ‘Invest Now’ button on this page

2. Enter your mobile number, date of birth, and OTP for verification

3. Choose your preferred FD issuer

4. Specify the deposit amount, tenure, and type of interest payout

5. Provide your PAN/Aadhaar or upload relevant documents for KYC

6. Add your nominee’s details 

7. Complete the payment via UPI or NetBanking

You will receive an acknowledgement via email and SMS. Before booking an FD, use tools like the long-term FD calculator to invest smartly and efficiently.

These FDs offer a secure way to grow your savings over time. Explore the different interest rates offered on them and choose a long-term FD option that can help you meet financial goals.