What is Current Rate of Interest on Fixed Deposit in 2021?

Without a doubt, FDs have emerged as the most foolproof investment option in 2020, a year that was characterised with financial difficulties and market volatility. The trend is expected to continue this year and more people will park a larger chunk of their money in FDs for assured returns and liquidity. 

However, it is pertinent that you choose an FD provider that provides you with a high interest rate as well as ways to grow your FD investment. This is because most banks have slashed their FD interest rates in the wake of frequent repo rate cuts announced by RBI in the last two years. In such a scenario, a non-bank FD is a better choice over a bank FD. 

Bajaj Finance, a Non-Banking Financial Company (NBFC) offers a lucrative interest rate up to 7.25% on its FD. This is one of the best interest rates you can avail among all investment options in 2021. Let’s show you Bajaj Finance FD returns comparison with a top bank FD for a senior citizen.

• Additional Interest Rate for Online FD

You can get the advantage of an extra interest rate of 0.10% over and above the base rate if you decide to invest in online FD with Bajaj Finance.. The process of online FD hardly takes a few minutes of your time with minimum documentation formalities.

• Monthly Investment Option

Unlike bank FDs where you need to invest only lumpsum amount, Bajaj Finance gives you an option to make 6-48 monthly deposits under its Systematic Deposit Plan (SDP). You can choose to have either different maturity dates or single maturity date.

• Multi-Deposit Facility

The multi-deposit facility is unique to Bajaj Finance FD. It works on the principle of laddering which allows you to create several FDs in small amounts with varying maturity period. In case of emergency, you can withdraw one FD prematurely and remaining FDs can stay invested for interest income.

• Loan Against Fixed Deposit

When you face liquidity crisis and need to break your FD, you can avail loan against Bajaj Finance FD up to 75% of its value. This will save you the interest loss that usually occurs on premature withdrawal of FD due to the penalty rate.

Periodic Payouts

If you expect stable income from your investment options, then FD can meet your needs in the form of periodic payouts. You can opt for monthly, quarterly, half-yearly or yearly interest withdrawal from Bajaj Finance FD.

The FD interest rates in 2021 are likely to remain low due to uncertain market dynamics. However, FDs will remain the preferred choice of investors for its high safety, high liquidity and guaranteed returns. Bajaj Finance FD is among the few investment options that offer high interest rate up to 7.25% despite the interest rate cuts on bank FDs. Your investment with Bajaj Finance FD is very secure because it has received high stability accreditation from trustworthy credit rating agencies like ICRA and CRISIL. Bajaj Finance FD also gives several useful benefits such as additional interest rate on online FD, loan against FD, multi-deposit facility, small monthly deposits and periodic payouts.