Keeping surplus money in a savings account offers easy access, but the interest earned may be lower than some Fixed Deposit options. For people looking to earn a fixed return on their savings, an FD can provide a defined interest rate for a chosen period.
Opening an FD has also become easier. Instead of visiting a branch and completing physical paperwork, investors can compare available options and complete the booking process online. With Fixed Deposit options offering interest rates of up to 8.5% p.a., subject to applicable terms and conditions, choosing a suitable deposit can help investors plan their savings more effectively.
Choose the Right Fixed Deposit
Before booking an FD, compare interest rates, tenures, issuer details and other applicable terms. Different banks and NBFCs may offer different rates and deposit periods.
JioFinance brings FD options from partner banks and NBFCs together, allowing investors to compare key details before investing.
Some factors to consider include:
- Interest rates: Selected FD options may offer rates of up to 8.5% p.a., subject to applicable terms and conditions.
- Tenure: Choose a deposit period that matches when you may need the money.
- Payout option: Depending on the FD, investors may be able to receive interest periodically or at maturity.
- Issuer: Check whether the deposit is offered by a bank or an NBFC.
- Senior citizen rates: Eligible senior citizens may receive an additional interest rate on certain deposits.
Comparing these factors can help investors select an FD based on their savings goals and preferred tenure.
| Feature | Bank Fixed Deposit | NBFC Fixed Deposit |
| Interest rate | Varies by bank and tenure | Varies by issuer and tenure |
| Tenure | Varies by product | Varies by product |
| Senior citizen benefit | Available on eligible FDs | Available on eligible FDs |
| Safety information | DICGC cover for eligible deposits | Check applicable credit rating |
| Booking | Online options available | Online options available |
Book an FD Online
The online booking process can save investors a visit to a physical branch. Once you select an FD, you can complete the required KYC and payment steps online.
Here are the steps to book a Fixed Deposit online with JioFinance:
- Compare FD options: Check interest rates, tenures and issuer details.
- Select an FD: Choose a deposit based on the amount you want to invest and the required tenure.
- Complete KYC: Provide the required personal details and complete identity verification.
- Make the payment: Transfer the selected deposit amount through the available payment method.
- Receive confirmation: Once the booking is completed, keep the digital confirmation and deposit details for future reference.
JioFinance allows investors to complete these steps through its app. The exact time required may vary based on KYC status, payment processing and other applicable requirements.
Understand the Safety of Your Deposit
Safety is an important factor when selecting an FD. Investors should understand the type of institution offering the deposit and the protection or rating that applies.
Eligible bank deposits, including deposits with small finance banks, are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to INR 5 Lakh per depositor per bank, subject to applicable rules.
DICGC insurance does not cover NBFC deposits. Investors can instead review the relevant NBFC’s credit rating and the deposit terms before investing.
A credit rating provides information about the issuer’s assessed ability to meet its financial obligations. However, investors should review the complete product information and applicable terms rather than relying on the rating alone.
Choose a Tenure Based on Your Goal
FDs are available across different tenures, depending on the issuer. Choosing the right tenure can help ensure the money is available when you need it.
Consider the following:
- Short-term needs: A shorter FD tenure may suit money required within the next few months.
- Medium-term goals: A one- to three-year FD may suit planned expenses over the next few years.
- Long-term goals: A longer tenure may suit savings you won’t need immediately.
Before booking, check the applicable interest rate for the selected period. Also review premature withdrawal rules, interest payout terms and renewal conditions.
Keep Track of Your FD Investments
Investors may have FDs with more than one bank or NBFC. Tracking each deposit helps with financial planning and ensures you don’t miss important maturity dates.
Important details to monitor include:
- Deposit amount
- Interest rate
- Tenure
- Maturity date
- Maturity amount
- Issuer
- Renewal instructions
A consolidated view of FD investments can make it easier to monitor deposits and plan how to use the funds when they mature.
Why Compare Before Booking?
Interest rates can vary between issuers and across different tenures. Comparing available options before investing gives investors a clearer understanding of what each deposit offers.
A comparison platform can bring key information together, reducing the need to check multiple websites or apps separately. Investors can then consider the rate, tenure, issuer and applicable terms before choosing an FD.
The aim should not be to select an FD based only on the highest interest rate. You should also consider the tenure, investment amount, financial goal and deposit terms.
Conclusion
Booking a Fixed Deposit online can make the investment process easier by bringing comparison, KYC and payment steps into one place. With selected FD options offering interest rates of up to 8.5% p.a., subject to applicable terms and conditions, investors can compare different rates and tenures before investing. Reviewing the issuer, safety information, maturity details and withdrawal terms can help align the deposit with financial goals.
