If you are looking at fixed income investments to yield a higher return for a future spend, you can opt for India's favourite instrument- Fixed deposits. FDs help depositors get higher returns when compared to a savings account and these can be mainly opted as: Bank FDs and Company or Non-bank finance company (NBFC) FD. While bank deposits are insured to the extent of Rs 1 lakh, NBFCs offer no such insurance but promise interest returns higher than those of banks.

Bajaj Finserv is one such NBFC that is presently offering fixed deposits for interest as high as 9.10 percent (senior citizens). Following are the complete details on the prevailing schemes and interest rates offered by the NBFC.

• Minimum deposit: Rs 25,000

• These interest rates are effective from 17 October 2018.
• Senior citizens are liable to receive 0.35 percent higher interest rate.
• Bajaj Finserv employees, existing FD customers or loan customers will receive 0.25 percent more and also at the time of renewal of an existing FD.
• For a minimum deposit of Rs 1 lakh, Bajaj Finserv offers a special FD plan with an interest rate of 8.05 percent for a tenure of 15 months.
• Cumulative means the interest will be paid along with the principal at the end of the tenure (on maturity) and non-cumulative means the interest will be paid out in intervals as per the chosen plan (monthly or quarterly or yearly, etc).
• Cumulative FDs fetch higher returns at the end of the tenure as the amount of interest earned over a period is reinvested as principal. For example, if you deposit Rs 10 lakhs for a period of 5 years in a cumulative FD, you will receive Rs 15,21,059 at the end of maturity (at the rate of 8.75%), whereas, in a monthly non-cumulative scheme, you will receive Rs 14,09,500 after 5 years (at the rate of 8.19%).

Safety

Bajaj Finserv has ICRA's MAAA (stable) rating and CRISIL's FAAA/Stable rating, which are high on safety as per the company's website. It is, however, advisable to consult a professional financial advisor before you decide to invest sizeable amounts in an NBFC.