Punjab Newsline,Business:
Fixed deposits continue to be one of the most familiar savings options for Indian investors. Even today, when there are many alternatives available, people still return to fixed deposits when they want clarity and stability. The reason is simple. The structure is easy to understand, and the returns are known in advance.
In 2026, fixed deposit rates have again become a topic of discussion. Interest rates are higher than they were a few years ago, and many investors are taking another look at FDs. The question many people are asking is not whether fixed deposits are safe, but whether they can still deliver reasonable returns when chosen correctly.
This is where the role of understanding FD rates, and using a fixed deposit return calculator, becomes important.
People often assume that choosing the highest rate automatically leads to the best return. In practice, that is not always the case.
Why fixed deposit rates matter more now
Interest rates move in cycles. There have been long periods when fixed deposits offered limited returns, and investors were less interested in locking money away. During those years, many people looked for alternatives.
The situation today is different. Rates have improved, and fixed deposits are again being considered seriously.
Most investors use fixed deposits for simple reasons:
- they want predictable returns
- they want to avoid market-linked ups and downs
- they want clarity on timelines and cash flow
These reasons are still valid in 2026. What has changed is that the difference between one FD option and another can meaningfully affect outcomes.
A deposit held for two years versus one held for three years can earn very different returns. Similarly, choosing monthly interest instead of annual interest changes how much the deposit eventually generates.
Understanding why “best FD rate” is not one fixed number
When people search for the best FD rates for 2026, they are usually looking for one number. In reality, a fixed deposit does not work in isolation like that.
Returns depend on:
- how long the money stays invested
- whether interest is paid out or reinvested
- how frequently interest is credited
Because of this, two deposits showing similar rates can result in different final amounts. This is why a FD calculator is useful. It shows what the rate actually means in rupee terms.
Bajaj Finance Ltd FD rates for investors below 60 years
Bajaj Finance FD is commonly chosen by investors because it offers multiple tenure and payout options. Deposit amounts start from Rs. 15,000 and go up to Rs. 3 crore. The rates mentioned here are effective from 11 June 2025.
Cumulative FD rates (below 60 years)
For cumulative fixed deposits, where interest is paid at maturity, the current rates are:
- 60% p.a. for tenures between 12 and 14 months
- 75% p.a. for tenures between 15 and 23 months
- 95% p.a. for tenures between 24 and 60 months
Cumulative deposits are usually selected by people who do not need regular income. The interest remains invested and grows over time. The effect of compounding becomes clearer as the tenure increases.
Non-cumulative FD rates (below 60 years)
For non-cumulative fixed deposits, which provide regular interest payouts, the rates vary depending on payout frequency.
For investors below 60 years, the applicable annualised interest rates are:
12–14 months
- Monthly payout: 41% p.a.
- Quarterly payout: 44% p.a.
- Half-yearly payout: 49% p.a.
- Annual payout: 60% p.a.
15–23 months
- Monthly payout: 55% p.a.
- Quarterly payout: 59% p.a.
- Half-yearly payout: 64% p.a.
- Annual payout: 75% p.a.
24–60 months
- Monthly payout: 74% p.a.
- Quarterly payout: 78% p.a.
- Half-yearly payout: 83% p.a.
- Annual payout: 95% p.a.
Monthly payouts offer steady income, while annual payouts usually result in slightly higher returns overall. The difference is not always obvious until the figures are calculated.
Senior citizen FD rates remain higher
Senior citizens receive additional interest benefits on fixed deposits. Over time, this difference can add up, especially for longer tenures.
Cumulative FD rates (senior citizens)
For cumulative deposits, senior citizens currently earn:
- 95% p.a. for 12–14 months
- 10% p.a. for 15–23 months
- 30% p.a. for 24–60 months
A rate of 7.30% p.a. for longer tenures allows retirees to plan their savings with greater certainty.
Non-cumulative FD rates (senior citizens)
For non-cumulative deposits, senior citizen rates depend on the interest payout frequency.
The applicable annualised interest rates are:
12–14 months
- Monthly payout: 74% p.a.
- Quarterly payout: 78% p.a.
- Half-yearly payout: 83% p.a.
- Annual payout: 95% p.a.
15–23 months
- Monthly payout: 88% p.a.
- Quarterly payout: 92% p.a.
- Half-yearly payout: 98% p.a.
- Annual payout: 10% p.a.
24–60 months
- Monthly payout: 07% p.a.
- Quarterly payout: 11% p.a.
- Half-yearly payout: 17% p.a.
- Annual payout: 30% p.a.
Many retirees prefer monthly interest because it supports regular expenses. Others prefer annual payouts so that the deposit earns slightly more over time. Both options are commonly used.
Why a fixed deposit return calculator helps
Fixed deposits are simple, but comparing options can still be confusing. Rates are close to each other, and payout options change the outcome.
A fixed deposit return calculator helps by showing:
- how much a cumulative deposit will grow
- how much income a monthly payout actually provides
- whether extending a tenure improves returns meaningfully
Seeing the numbers often changes how people think about their choices.
Choosing between cumulative and income options
There is no single right choice when it comes to cumulative or non-cumulative deposits.
Cumulative deposits are usually preferred by people who:
- do not need income during the tenure
- are saving for a future requirement
Non-cumulative deposits are often chosen by people who:
- depend on regular interest income
- want predictable cash flow
The choice depends on how the deposit fits into everyday financial needs.
Longer tenures and flexibility
Longer tenures currently offer higher interest rates. This is particularly visible in the 24–60 month range. At the same time, locking money away for longer periods reduces flexibility. Before choosing a longer tenure, it is worth considering whether the additional return is worth the reduced access to funds. A FD calculator helps compare these trade-offs clearly.
Conclusion
Fixed deposits continue to remain relevant in 2026, especially for investors who value clarity and stability. Interest rates are stronger than they were in recent years, which has renewed interest in FD investments.
Bajaj Finance FD offers multiple tenure and payout options, allowing investors to choose based on their comfort and needs. Using a FD calculator helps move the decision away from guesswork and towards understanding.
For most people, the most profitable fixed deposit is not the one with the highest advertised rate. It is the one that fits quietly into their financial planning and provides confidence over time.