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4 essential factors you should check apart from FD interest rates

While opting for tried and tested investment options like a fixed deposit, it is tempting to only look for the best and highest interest rate before you make your investment.


While opting for tried and tested investment options like a fixed deposit, it is tempting to only look for the best and highest interest rate before you make your investment. While you can use an FD calculator and select the best FD interest rates by comparing the returns, the FD interest rate shouldn’t be the only thing you check when making an investment.

Here are 4 other factors that you must check apart from the FD interest rate.

Credit rating of the FD

Credit ratings are indicative of the safety of your funds and you can evaluate how likely an issue is to pay you the maturity amount on time by examining this. For example, Fixed Deposits account from Bajaj Finance are your best bet because they carry CRISIL’s and ICRA’s highest ratings, FAAA and MAAA respectively. Moreover, with a Bajaj Finance FD, you can earn interest up to 8.75% on an FD that offers returns at maturity (held for at least 36 months) and up to 9.10% if you are a senior citizen.

Type of fixed deposit

There are the two types of FDs that an issuer offers: one where you can get the returns on maturity, as a lump sum and the other where you can get interest payouts at regular intervals. You can select the FD type keeping your financial objectives in mind. When you wish to receive payouts on a monthly, quarterly, half-yearly or annual basis, you can choose to invest in the second type. However, if you want to build a huge corpus for retirement or other long-term goals invest in an FD that offers a lump sum benefit on maturity.

This is important to note because when you opt for an FD with regular payouts, your net gains are slightly lower, as the corpus doesn’t benefit from compounding. In a similar vein, when your goal is to earn FD returns that beat inflation, investing in an FD for a shorter tenor is ideal. You can feed in your details into an FD calculator to view the difference yourself.

Economic conditions in the country

The prevailing economic situation along with the monetary and fiscal policies significantly impact Fixed Deposit interest rates. Apart from this, RBI policies like statutory liquidity ratio, cash reserve ratio, and repo rate also have a bearing on FD interest rates. The bottom line is that these changes affect your net gains. If there is inflation, for example, there will be a subsequent increase in FD interest rates to attract more depositors like you.

Taxation on an FD investment

As you know, interest income is not completely tax-free. It will be added to your total income and taxed as per your tax slab. However, issuers will deduct TDS if your interest income is more than the specified limit. As per the Interim Budget of 2019, the TDS limit for bank and post office FDs will increase to Rs. 40,000 from Rs. 10,000.

Now that you know all the important things to consider before investing in an FD, compare schemes offered by various issues to identify the best deal. Bajaj Finance proves to be a true winner in this regard as it not only offers you one of the best interest rates in the country, you only need Rs. 25,000 to invest and you can even avail a loan against your FD if you need to. Best of all, you can start an FD online by filling a short form and enjoy high FD interest rates today. 

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In today’s generation, the continuous updates in the technology are making every complex procedure so easy and faster than the previous one. In the online financial market, people are getting easier ways to obtain the financial opportunities by not doing any physical efforts and wasting the whole day to know whether they will get the approval or not. It has become possible with the help of fast loans with no guarantor. These loans are easily available with the help of direct lenders, who diligently working for the borrowers in the UK above than their risk.





Eligibility Criteria of Fast Loans:

A person, who has the citizenship of the UK and aged 18 or above, can apply for these loans, if he is earning the stable income and scored average on the credit report. The income can be earned through the part-time or full time job. The business income is also acceptable, if it is above than the break-even stage.

Procedure to apply for fast loans:

Do research for an online lender through the internet and after selecting the one, fill an online application form on the website and then submit it to be considered by the lending company and getting the digital sanction from the end of the lending company faster. Once, the lender finds your credit application suitable for the sanctioning then the approval will come for sure to you. For that, you have to fulfill the general eligibility criteria. In case, you have scored low on the credit report, then you can search for the lenders, who are providing any of the following features:

1. No credit check:

Novice borrowers or people, who have scored low on their credit profiles, do not prefer to let their credit applications checked by the lending companies. It is because the negative credit reports result the more negative credit ratings on the credit report of the bad credit scorers and new borrowers loose the chances of the approval due to no previous records. Here, these people need no credit check option, which can bring the funds to them. Some online lenders are offering the same policy, research for it and then apply.

2. No broker involvement:

The direct lenders do not need the broker interference into the lending process. It is because these are open for the direct contacts to the borrowers. Consult them directly and save the consultancy fee of the broker.

3. No guarantor loans:

As the name suggests, there is no need of guarantor involved in the fast loans. People, who have either scored low on their credit profile or the people, who have recently shifted to the UK, can avail these loans to bring ease for them.

4. Easy terms and conditions:

Many direct lenders are offering the loans with no credit check involved and most with no mandatory and lengthy documentation to make the approvals faster. Keep researching on the internet to get these lenders, if you are in the emergency to get the funds.

End Alert:

Do not apply for the loans without knowing the legitimacy of the lender to avoid to get trapped by the frauds.

Though getting a competitive home loan interest rate can reduce your EMI amount, repaying a home loan still takes a chunk out of your income. In such a scenario, you may be looking for additional financing for a variety of personal and professional needs. However, an unsecured loan may prove to be too expensive and a using credit cards may not give you a large window for affordable repayment. One of the best options is to avail a top-up loan on your home loan.

A top-up loan is not only easy to apply for, but also comes at an affordable rate of interest. Lenders will offer you a low interest high value top up on your Home Loan or Home Loan Balance Transfer so that you can meet your fund needs with ease. There is no restriction on how you can use this amount. You could use it to fund a wedding in the family, meet the education costs for your children, or buy a number of assets for your business.

However, when you apply for a top up loan to avail funds, your lender will keep a watch on certain factors to ensure that you can repay the loan along with your other EMI commitments. So, read on to know how you can secure more funds as a top-up loan on your home loan.

Work on your History with Repayment

Lenders look at your history with servicing loan amounts before granting you a top-up loan on your home loan transfer or home loan. Your credit score reflects your history with credit and lenders are willing to give you more money if you exhibit a healthy relationship with credit and do not have any large financial commitments in the present.

In case your existing lender is unwilling to offer you a top-up loan you can transfer your home loan with another lender who offers an array of benefits along with a substantial top-up loan sanction to make the most of your home loan.

Improve your Income

Over a period of time, there is bound to be a rise in your income as your career grows. This increase in your earnings gives you a better opportunity to get a higher top-up loan as lenders can count on you to be able to repay the new EMIs without defaulting.

Have a Valuable Property

It is highly likely that the value of your property appreciates over time owing to which lenders will be willing to offer you a hefty top-up loan. This is because the increased value of your property acts as secure collateral for your lender as all top-up loans are secured loans offered against your home.

Simply remember that you should not be using this additional loan amount for speculative purposes such as investing in the stock market, but rather put it towards any direct expense. Thus, buying a property in a prime location will prove fruitful especially if you intend on securing additional funds.

What are the Criteria to Get a Top Up Loan?

You must be a salaried or self-employed individual with minimum 3 years of work experience. If you are a working professional, in order to apply for a top-up loan, you must be a resident of India and between 23 to 62 years old.

How to Use a Top Up Loan

With a top-up loan in hand you can use fund an array of expenses such as:

  1. Pay for a wedding in the family
  2. Pay your child’s education expenses
  3. Travel the world with your spouse
  4. Buy machinery or equipment for your business
  5. Fund a business expansion
  6. Set up a new office or factory
  7. Buy land or a warehouse for your existing business
  8. Fund medical emergencies
  9. Invest in another property

Securing large amounts as a top-up loan on your home loan has never been easier. So, check your pre-approved loan offer today and avail a customised top-up loan deal from lenders.

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