Why is fixed deposit a wise choice while planning your future?
In a recent survey, SEBI inferred that more than 90% of Indian families prefer investing in fixed deposit (FD) schemes compared to mutual funds

In a recent survey, SEBI inferred that more than 90% of Indian families prefer investing in fixed deposit (FD) schemes compared to mutual funds. The primary reason behind this inclination is the low risk factor associated with fixed deposits. There are several other factors, which make investors believe that FD is a wise investment choice for future planning.
Why is FD a wise investment option for the future?
There are a variety of investment options including stocks and mutual funds where investors can park their funds and expect high returns. However, these are volatile in nature as returns are always dependent on market sentiment.
Only investing in such schemes does not secure your future as returns are indeed uncertain. You must also look for alternate options that guarantee considerable returns.
Investing in FDs ensures stable returns, making it a wise option for efficient future planning. Fixed deposit returns are not reliant on market fluctuations, which makes it a lucrative option for investors with low-risk appetite. The interest rates on FDs stay constant throughout the tenure and allows one to estimate the actual returns beforehand.
With FDs, investors can choose among monthly, quarterly, half-yearly, and early payout options. Alternatively, they can also receive the entire amount, both principal and interest, at the end of tenure. This is beneficial as investors can select a preferable payout option based on their requirements. FDs also allow investors to raise a loan against their investments when they are in urgent need of funds.
What are the strategies to maximise earnings from FDs?
There are numerous strategies that investors can adopt to book FDs at high-interest FD rates. This ensures maximised returns from their investments. Some of these strategies include:
- Financial institutions such as Bajaj Finance offer higher interest rates on special tenures. These usually include 15, 18, 22, 30, 33, and 44 months. Investors can select these tenures to maximise the returns from their investments.
- FD is one of the most suitable options for long-term investments. On selecting longer tenures, investors can receive higher interest rates on their deposits. Thus, they can fulfil their far-fetched financial goals from their FD investments.
- Investors have the flexibility of selecting cumulative or non-cumulative payout options while booking an FD. Although the non-cumulative payout option allows investors to receive money periodically, the cumulative option can churn higher returns in the long run. To get a clear idea about this, they can use an online FD calculator to optimise the factors for maximum returns.
- Financial institutions including Bajaj Finance offer 0.25% higher than regular FD rates to senior citizens. Thus, investors can consider opening an FD account in their parent's name to increase their returns from the investment.
The following table will help investors to get a clear idea of how selecting a special and longer FD investment tenure and cumulative interest rates in the name of a senior citizen can maximise their returns.

Once investors decide their strategy for maximising their income, they can proceed to check the eligibility criteria before beginning with the FD investment process.
Who can invest in fixed deposits?
To book an FD with Bajaj Finance, an investor must be an Indian citizen. Furthermore, the following groups are also eligible for FD investments:
- Partnership firms and companies
- Sole proprietorship
- Hindu Undivided Families
- Clubs and associations
- Societies and family trusts
Also, investors should keep their PAN card and KYC documents ready to enter the details correctly while investing in FD.
How easy is it to start investing in FDs?
Interested investors can visit the official website of their preferred financial institution and navigate to the FD investment page. As most renowned financial organisations allow online opening of fixed deposits, investors can easily fill up the application form on the website.
Next, investors need to enter certain mandatory details accurately. Once done, they can transfer the funds through internet banking, UPI, or NEFT to open the FD.
With such ease of investing and all the lucrative features on offer, fixed deposit schemes have become a popular investment choice among risk averse investors. However, individuals must do a proper background check before selecting a financial institution. Financial companies such as Bajaj Finance enjoy AAA/STABLE ratings from CRISIL and ICRA, which ensure the maximum safety of your invested funds.
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