As you plan your money moves for the year ahead, a fixed deposit remains one of the most stable ways to protect capital and earn predictable income. With the FD interest rate cycle nearing a potential turn as inflation cools, 2025 could be a smart window to lock favourable yields for 2026 and beyond. The right fixed deposit mix can balance safety, liquidity, and post-tax returns while aligning with your goals. Among today’s options, Bajaj Finance FD stands out for its flexible tenures and multiple payout choices, making it easier to tailor your savings plan.
How FD interest rate trends look for 2025 to 2026
- The Reserve Bank of India has kept the policy repo rate at 6.50% through much of 2023 and 2024 as price pressures eased. However, the repo rate has since been reduced in 2025 and currently stands at 5.25% as of December 2025.
- Market consensus indicates a gradual softening bias through 2025 if inflation remains under control, which can translate into lower FD interest rates for new deposits.
- For savers, this environment typically favours locking longer tenures early to protect income flows planned for 2026.
- A staggered maturity ladder allows investors to benefit from current rates while maintaining periodic liquidity.
If you prefer a straightforward digital route, Bajaj Finance FD offers both cumulative and non-cumulative options across tenures from 12 to 60 months, making it suitable for laddering strategies.
Best fixed deposit rates you can lock in today
Below are the current indicative FD interest rate slabs across tenures. Cumulative deposits pay interest at maturity with compounding, whilenon-cumulative deposits pay interest through monthly, quarterly, half-yearly, or yearly payouts, all quoted on ap.a. basis.
FD rates for customers above the age of 60 (Senior Citizens)
| Tenure | At maturity (p.a.) | Monthly (p.a.) | Quarterly (p.a.) | Half-yearly (p.a.) | Yearly (p.a.) |
| 12 – 14 months | 6.95% | 6.74% | 6.78% | 6.83% | 6.95% |
| 15 – 23 months | 7.10% | 6.88% | 6.92% | 6.98% | 7.10% |
| 24 – 60 months | 7.30% | 7.07% | 7.11% | 7.17% | 7.30% |
FD rates for customers below the age of 60 (Non-Senior Citizens)
| Tenure | At maturity (p.a.) | Monthly (p.a.) | Quarterly (p.a.) | Half-yearly (p.a.) | Yearly (p.a.) |
| 12 – 14 months | 6.60% | 6.41% | 6.44% | 6.49% | 6.60% |
| 15 – 23 months | 6.75% | 6.55% | 6.59% | 6.64% | 6.75% |
| 24 – 60 months | 6.95% | 6.74% | 6.78% | 6.83% | 6.95% |
These slabs highlight the trade-off between tenure length and payout frequency. Investors planning regular income in 2026 can opt for non-cumulative payouts, while those targeting wealth creation for later years may prefer cumulative FDs.
Tenure strategy to maximise returns in 2026
- Build a ladder: Split investments across 12, 24, 36, and 48-month FDs. As each matures, reinvest based on prevailing FD interest rates.
- Use a barbell approach: Allocate one portion to short-term FDs for liquidity and another to longer tenures (36–60 months) to lock higher rates.
- Stagger payout choices: Combine monthly, quarterly, half-yearly, or yearly payouts with cumulative deposits to optimise blended returns.
- Align tenures to goals: Match FD maturities with known expenses such as education fees or property-related costs in 2026.
Safety and due diligence before booking an FD
- Issuer strength: Review financial health, capital adequacy, and track record.
- Credit ratings: Bajaj Finance FD carries the highest safety ratings of [ICRA] AAA (Stable) and CRISIL AAA / Stable, indicating a very strong capacity to meet interest and principal obligations.
- Insurance coverage: Bank FDs are insured by DICGC up to Rs. 5 lakh per depositor per bank. NBFC FDs, including Bajaj Finance FD, are not covered by DICGC.
- Diversification: Spread deposits across issuers and maturities to manage risk.
- Documentation: Ensure KYC and nomination details are updated.
Bajaj Finance FD offers a fully digital booking process, simplifying execution and tracking.
Tax Treatment of Fixed Deposit Interest in India (FY 2025-26 Update)
- Taxability: FD interest is still fully taxable as per the investor’s income tax slab under the head “Income from Other Sources”.
- TDS for banks and post offices: The TDS (Tax Deducted at Source) threshold has been increased. TDS at 10% now applies if the aggregate interest exceeds Rs. 50,000 in a financial year for regular citizens, and Rs. 1,00,000 for senior citizens.
- TDS for NBFC FDs: Under Section 194A, NBFCs (Non-Banking Financial Companies) still deduct TDS at 10% if total interest exceeds Rs. 10,000 in a financial year (this limit was previously Rs. 5,000). PAN submission is mandatory to avoid a higher TDS rate of 20%.
- Senior citizen deduction: The deduction under Section 80TTB remains up to Rs. 50,000 on interest income from banks, post offices, and cooperative banks, not NBFC FDs or other sources like bonds. This deduction is only available if you opt for the old tax regime.
- Forms: Eligible investors may still submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens) to avoid TDS, provided their total taxable income for the year is below the basic exemption limit.
- Timing: TDS is deducted when interest is credited or paid, typically on an annual or quarterly basis.
Building a 2026-ready portfolio with Bajaj Finance FD
- Flexible tenures: Choose between 12 and 60 months to align with 2026 milestones.
- Non-cumulative payout options: Monthly, quarterly, half-yearly, and yearly payouts allow precise cash-flow planning.
- Cumulative option: Ideal for long-term growth with compounding.
- Digital experience: Book, track, and renew deposits online.
- Senior citizen advantage: Higher slabs, such as 7.30% p.a. at maturity for 24–60 months, enhance returns.
How to choose the right mix of fixed deposits
- Map expenses across early, mid, and late-2026 and align FD maturities accordingly.
- Separate FDs by purpose—liquidity, income, and growth.
- Stagger booking dates to manage rate-movement risk.
- Factor in tax and TDS while planning net returns.
- Review and reassess at maturity before renewing.
Conclusion
If stability through 2026 is your priority, a fixed deposit strategy built today can provide reliable income and peace of mind. By locking favourable FD interest rates, balancing cumulative and non-cumulative options, and spreading maturities intelligently, investors can stay resilient against rate changes. For those who value safety, transparency, and digital convenience, Bajaj Finance FD offers a structured way to secure predictable returns and protect long-term financial goals.
