What is a Fixed Deposit?

A fixed deposit, known as FD, is offered by banks and other financial services which help the customers save money. With an FD account, we can deposit a fixed amount at the predetermined interest for a specified period. Once your tenor is complete, you will receive the total sum, including the principal amount and interest, which turns into good savings. Banks offer different rates of interest plans. You can choose the fixed deposit plan from 7-14 days and maximum until ten years.

Whenever you open a fixed deposit plan, the interest rate remains fixed. It doesn’t change even after the fluctuation in the market. You’ll get the interest at the time of maturity or based on the period. It depends on your choice. You can’t withdraw the money before maturity. In case you do so, there could be certain penalty charges.

How to Choose the Best Fixed Deposit Plan?

When choosing the best-fixed deposit plans, we should look around and check for the best services offered by banks and other financial companies. We should choose wisely as it’ll benefit us in the long term. Here we need to look at the main pointers while picking up any fixed deposit plan.

  • High Credibility Rating in the Market: While talking or planning about the investment, you should not ignore the risk part for the long-term investment. It is always better to go for the bank or company that maintains the highest credit ratings of FAAA by CRISIL and MAAA by ICRA. These ratings indicate that you’ll receive the total amount at the time of maturity, and there is no sign of default and interest loss.
  • Minimum Deposit at Low Amount: Sometimes, it isn’t easy to go for savings as an individual salaried person. That’s why, always choose the FD plan, starting from a low amount of Rs. 25,000. You can also opt for a higher amount. 
  • Flexible Tenure Options: Banks and companies providing the option of choosing flexible tenor options are best to pick up. Many prove the easy tenor options from 12 to 60 months as per the user’s choice.
  • Multiple Payout Options Fixed deposit works in two ways. You can withdraw the total amount at the time of maturity. The second one, you can enjoy the option of multiple payouts of the interest throughout the tenor.

Bajaj Finance Child Fixed Deposit

 In this modern era, we require a certain amount of money to raise our children. Every day we are seeing rising education, healthcare, and living costs. To build our child’s future, we need financial planning. Here we talk about how Bajaj Finance Child Fixed Deposit helps us save a certain amount of money for our child’s bright future. Bajaj Finance Child fixed deposit works in two ways. First, we parents as guardians can open a fixed deposit plan, and the fixed deposit will mature when the child is 18 years. The second way is to withdraw the fixed deposit after the completion of the tenor. We’ll get profitable returns with exclusive benefits whenever we invest in the Bajaj Finance Child fixed deposit. We can enjoy an attractive rate of interest that is more than up to 7.05% p.a.

Benefits of Bajaj Finance Child Fixed Deposit

Here we’ll look at the main benefits of Bajaj Finance Child fixed deposit plans. That will help us make up our minds to go for a beneficial and trustworthy investment.

  • It gives us the assured rate of return at the time of maturity.
  • It provides us with the tax threshold on the amount of interest.
  • Flexible tenures are here to choose from 12 to 60 months.
  • It is easy to liquidate the fixed deposit.
  • We can get the loan against a fixed deposit.


Fixed deposits that offer flexibility in terms of tenor are always the one to choose. Lock-in periods can range anywhere between 1-5 years. Individuals should choose the tenor carefully as premature withdrawal of fixed deposit is not financially viable. For example, if a person needs money after 3 years, he/she should invest for 3 years or less.

Minimum Deposit

There are no fixed minimum deposit criteria for FDs; it varies from one financial institution to another. It is advisable to check with the company before making an investment.

For instance, Bajaj Finance allows its customers to make an FD with a minimum deposit of Rs.25,000. They also offer a systematic investment plan that enable customers to make a fixed monthly deposit. Having a low minimum amount threshold allows individuals more flexibility in terms of investment.


ncome generated from an FD is taxable under the Income Tax Act, 1961. Financial institutions will apply TDS (tax deducted at source) on your FD interest, which ranges from 10%-30%.

If an individual earns more than Rs.40,000 in a year as interest, then 10% TDS is applicable (if your PAN details are already submitted). Individuals who don’t earn taxable income can claim a refund on TDS on FD interest. They can do so by submitting 15G or 15H (senior citizen) to their respective financial institution. The upper cap for senior citizens stands at Rs.50,000.


Every company offers this facility to its investors. Even though it isn’t something to look out for, investors should always remember to exercise this feature while filling up the details for a fixed deposit.

To conclude, investors who are looking for an investment instrument that is secured, provides assured return and offers a competitive interest rate along with a regular source of income (non-cumulative interest) should opt for a fixed deposit. Additionally, keeping in mind the above mentioned factors can help them to invest wisely and relish the benefits.


In short, we all love our children more than anything else in the world. We are worried about the bright future of our children. To fulfil our dreams and ambitions here, Bajaj Finance is very helpful. It has a compact package with a high credibility rating, minimum deposit, flexible tenor, and multiple payouts. It has attractive rates of interest and many other benefits of opting for a fixed deposit.


Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends.


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