Short-term Fixed Deposit (FD)

A short-term fixed deposit is a low-risk savings tool that allows you to invest your funds for a short duration typically ranging from a few days to a couple of months. Except for this distinct feature of a short-term FD, they work just like a regular FD and provide fixed interest rates. 

 

This type of investment may be preferred by those who want to keep their funds secure while earning interest for a short period. Short-term FDs offer flexibility with some options allowing early withdrawal.

Here are the short-term FD interest rates offered by some banks and NBFCs for up to 1 year: 

Note: The interest rates mentioned are subject to change without prior notice. Please contact the respective bank or NBFC directly for the latest rates.

Short-term FDs come with various advantages that make them a popular choice among investors. Here are some of the key benefits:

• Nomination Facility 

Banks and NBFCs provide investors with the option to assign a nominee. This ensures the transfer of funds to your nominee without any hassle in the event of your unfortunate demise.

• Emergency Withdrawal

Short-term FDs offer the option to make premature withdrawals to handle emergencies. However, certain penalties may apply for withdrawing funds before maturity.

• Liquidity

Funds in a short-term FD are not locked in for a long duration. This flexibility allows you to access your money within a short period if needed.

• Compounding Benefit

Short-term FDs allow you to utilise the power of compounding interest. The interest earned is often compounded on a quarterly or yearly basis, helping your savings grow faster.

• No Impact from Market Fluctuations

Short-term FDs are not linked to market performance, so the interest rate remains fixed throughout the tenure. This makes them a low-risk investment option.

The process for opening a short-term fixed deposit is simple and straightforward. You can choose either the online or offline method to open your fixed deposit account.

• Online Method

You can follow these steps to open a short-term fixed deposit account online on Bajaj Markets:

1. Enter your mobile number, date of birth, and pin code in the ‘Invest Now’ application form

2. Enter the OTP sent to your mobile to continue the setup process

3. Compare interest rates from various partner banks and NBFCs

4. Choose a bank or NBFC, select the tenure, and pick an interest payout frequency that suits your needs

5. Enter your full name and PAN card details to verify your CKYC

6. If CKYC records are not available, upload the necessary documents, including your PAN card, Aadhaar card, and a selfie for verification

7. Review and update personal details such as your address, marital status, and email address

8. Enter your banking information, including your bank’s name, IFSC code, and account number

9. Add nominee details to designate a beneficiary for your FD

10. Choose your preferred payment method, either UPI or Net Banking, and complete the transaction

 

After completing these steps, your FD will be successfully booked, and you can start earning interest on your investment

• Offline Method

To open a short-term fixed deposit account offline, follow these steps:

1. Visit the nearest branch of your bank or NBFC

2. Complete the FD application form

3. Submit the necessary documents

4. Deposit the money at the counter

5. Collect the FD receipt with the details of your investment

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.