Explained: Fixed Deposit Monthly Interest Rate & Returns in FY 2021


 The returns of an FD scheme depend on the interest rate, investment tenor, and FD type you choose. You just need to feed these details to the FD calculator and it will give the estimated returns and interest earnings of the fixed deposit plan automatically.

If you prefer to invest in non-cumulative FDs then you will be eligible to withdraw the accumulated interest at regular intervals. Some banks and NBFCs such as Bajaj Finance even allow you to withdraw the interest after every month, six-month, year, or quarter as per your financial requirements. The returns offered by this FD scheme are also quite high because your invested amount multiplies at fixed deposit interest rates of up to 7.25%.

Suppose that you have gathered a corpus of Rs. 20,00,000 and want to invest it in a fixed deposit plan for 5 years. The monthly, quarterly, six-monthly, or yearly periodic interest returns that you will get on investing in the non-cumulative FD of Bajaj Finance FD scheme are given below:

Periodic payout type Applicable interest rate Interest payout
Monthly 7.02% Rs. 11,700
Quarterly 7.06% Rs. 35,300
Six-monthly 7.12% Rs. 71,200
Yearly 7.25% Rs. 1,45,000

Apart from high returns, you will be receiving these benefits on investing in this FD scheme:

Flexible investment tenor 

Selecting the right FD tenor is the key as it determines the returns and helps you to create smart investment strategies. Bajaj Finance offers a flexible tenor that ranges from one year to five years. 

For example, you can select a longer tenor and invest in cumulative FDs to create a snowball effect on your interest earnings. 

This is possible as the number of interest calculation cycles will increase and the interest earnings of every cycle will be added to the principal amount of the next cycle. As a result, your deposits will grow quickly. 

Option of investing in multiple FDs 

If you want to avoid committing all your savings to a single fixed deposit plan then you can utilize the multi-deposit feature of the Bajaj Finance FD scheme. This is because it allows you to split the corpus and invest in more than one FD at once. 

The tenor and investment amount along with the FD type can vary for each deposit. As a result, laddering deposits will be quite easy and you will be able to utilize the several liquidity points to carry out your future investment plans smoothly. 

FDs for NRIs 

A tenor range from 12 to 36 months is applicable for NRIs and new investors can grow their deposits at interest rates of up to 7%. If you are an overseas Indian citizen or non-resident Indian i.e. NRI then you can still invest in this FD scheme through an NRO account.

Also, a 0.25% additional FD interest rate is provided to senior citizens and individuals below 60 are eligible for a 0.10% better interest rate if they prefer to invest via the online investment process. All these features and benefits make it one of the best investment alternatives in the financial year 2021.

Fixed deposits are stable instruments that offer fixed returns upon maturity. You can calculate these returns before investing via an FD rate calculator. To earn higher returns, you will need to invest in a high-paying FD like the Bajaj Finance FD scheme. It offers an interest rate of up to 7.25% and enables you to choose a flexible tenor ranging from 12 to 60 months as per your investment needs. The features like multi-deposit facility, loan against FD, additional FD rates to senior citizens and online investors, and FDs for NRIs make it a convenient and feasible FD scheme for everyone.