An ideal investment is the one that provides quick capital growth without exposing it to risks. The company fixed deposits are proving to be a good alternative to bank FDs as they are providing better interest rates.
Company FD rates are high enough to provide huge returns post maturity. However, you must also compare the other features and benefits offered by various company FDs before investing.
To understand the best company FD interest rate you can follow these suggestions:
Use an FD calculator
Most finance companies have an FD calculator on their official websites these days. An FD calculator helps you to estimate the returns of your FD accurately. Therefore, it can be used to understand the interest gains offered by different FD plans even before investing.
However, you can also use these FD calculators to check the interest rate range offered by various finance companies and NBFCs who offer fixed deposit schemes. For that, you just need to visit their respective portals and find the FD calculator page.
The fixed deposit calculator will show you the interest rates as per the tenor, FD type, and customer category chosen by you. To find the highest company FD rate, you should note down the varying FD rates and returns by changing these values.
Invest carefully
It is a must to analyze your investment needs before investing in an FD. For example, if you invest in a cumulative FD, you will not get any periodic interest payouts as it provides the interest only at maturity.
In case you need some additional funds or in the event of a financial emergency, you will be forced to withdraw your deposits. This means that you will end up losing some interest due to the penalty charged by finance companies on premature withdrawals.
Choose an FD plan that offers easy liquidity options and the lowest penalty charges for early withdrawal of FDs.
Company FDs provided by Bajaj Finance charge only a nominal percentage of your interest earnings as a penalty. You can even apply for a loan against your FD to maintain the steady growth of your investment.
Senior citizen FD scheme
You can benefit from a higher company FD rate as some finance firms are offering a slightly better FD rate to senior citizens. For example, the Senior Citizen FD scheme from Bajaj Finance offers a 0.25% additional rate to senior citizens. Therefore, you will be able to earn higher returns if your age is 60 or above that.
Bajaj Finance FD interest rate of 6.85% is one of the highest FD rates when it comes to company FDs or any other FDs for that matter. On opening an FD account by filling and submitting an online FD form, you will get a 0.10% extra fixed deposit rate.
This FD has also received the highest stability ratings by credit rating organizations like CRISIL and ICRA. It means that you can invest in this FD without worrying about the prevailing economic scenario.
An instrument that provides a good growth rate to the invested capital should be your quick reply if someone asks what is investment. As bank FD rates have been reduced, company FDs can be your perfect choice to multiply your savings faster. However, the FD interest rate should not be the only thing that you are looking at while investing.
Flexible tenor, easy liquidity options, the stability of invested capital, etc. are some of the key features of a company FD that you must cross-check before investing. You may deposit in a Bajaj Finance FD as it is providing a high-interest rate and an online FD calculator to predict returns before investing. Since it has received the highest crediting ratings from ICRA and CRISIL for being a trustable name in the FD market, you can invest in it without any doubts.
