Long-term Fixed Deposits

Long-term Fixed Deposits (FDs) typically have tenors exceeding 1 year. Some issuers offer terms up to 10 years. This type of FD could be ideal for long-term financial goals such as education abroad and wedding expenses. It may also be suitable for retirement funds or real estate investments. 

The key benefit of a long-term FD is compound interest. Earned interest is reinvested periodically and accrues throughout the tenor. Investors could grow their wealth steadily with the help of rising long-term FD interest rates. They can seize this opportunity for better returns.  

The interest rate for a long-term fixed deposit differs from one issuer to another. Long-term fixed deposits allow you to invest at a higher rate for an extended period. Senior citizen investors enjoy even greater benefits. They typically receive higher long-term fixed deposit rates compared to regular investors. 

Given below is a table containing the FD interest rates for the highest tenor offered by issuers on Bajaj Markets.

Here is the list of benefits you can expect to enjoy with a long-term FD:

• Offers a higher interest rate compared to short-term fixed deposits

• Higher returns due to the power of compounding interest for a longer period of time

• Senior citizens can enjoy a higher interest rate than those aged under 60 years

• Returns for long-term fixed deposits are predictable and stable

• Investors can opt to use the fixed deposit as collateral for a loan to access the invested funds 

• Tax benefits with tax-saver FDs of up to ₹1.50 Lakhs u/s 80C of the Income Tax Act, 1961 

• Choose from interest payout intervals like monthly, quarterly, half-yearly, or annual 

When applying for a long-term FD, you need to meet certain eligibility criteria. Here are some common eligibility conditions required by issuers:  

• You should be above the age of 18 

• You must be an Indian resident or NRI

Investors also need to submit a predetermined list of documents. Keeping these things handy can speed up your process and make it seamless. 

• PAN card

• KYC documents

• Aadhaar Card

• Driving License

• Passport

• Voter ID

• Address proof

The eligibility criteria and required documents may vary based on the issuer you choose. Check with the issuer to ensure you meet all the listed criteria. Have all the documents ready for a hassle-free investment process.

The process of investing in a fixed deposit is simple. It is straightforward and easy to follow. Here are the steps you will need to follow to invest in a long-term fixed deposit online.

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

2. Enter your mobile number, date of birth, and OTP to verify your account

3. Select an FD issuer of your choice 

4. Enter the deposit amount, tenor, and type of interest payout

5. Provide your PAN/Aadhaar card or upload the relevant documents to complete your KYC 

6. Complete the payment via UPI or NetBanking

You will receive an acknowledgement on your registered email and mobile number. On Bajaj Markets, you can browse some of the leading FD options.  You also get tools like the fixed deposit calculator. Such provisions help you invest smartly and efficiently.

Here are a few ways you could increase your returns from an FD in the long term: 

• Cumulative FDs have higher return rates compared to non-cumulative FDs. The interest and principal amount is paid out at maturity. The interest earned is reinvested based on the compounding frequency. 

• Investors can use the laddering strategy. This involves creating several FDs with different maturity dates. This approach balances liquidity needs and may help mitigate risk.

• Tax-saving FDs are specifically designed to offer tax benefits to investors. These FDs have a lock-in period of 5 years. You can claim deductions of up to ₹1.5 Lakhs u/s 80C of the Income Tax Act, 1961.   

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.