• English
  • Hindi
  • Bengali
  • Marathi
  • Telugu
  • Tamil
  • Gujarati
  • Kannada
  • Odia
  • Malayalam

Enhancing Returns: The Role Of Bonuses In Fixed Deposit Schemes


by Mahindra Finance


March 1, 2024


5 mins read

When it comes to investing, everyone wants to maximize their returns. One investment avenue that offers stability and assured returns is a fixed deposit (FD) scheme. But did you know that bonuses can play a significant role in enhancing your FD returns? In this article, we will dive into the concept of bonuses in fixed deposit schemes and explore how they can boost your earnings.

Understanding fixed deposits

Fixed deposits are a popular investment option that offers higher interest rates than regular savings accounts. They provide a safe and secure way to grow your savings over a predetermined period. With FDs, you have the flexibility to choose the tenure that suits your financial goals, ranging from as short as 7 days to as long as 10 years.

Types of bonuses in fixed deposit schemes

Fixed deposit schemes offer different types of bonuses to attract and retain investors. Some common types of bonuses include:

  • Loyalty bonuses are awarded to investors who maintain their FDs for an extended period. These bonuses provide an incentive for long-term commitments and can significantly enhance your returns over time.
  • Performance bonuses are given to investors who meet specific investment targets or conditions. These bonuses encourage investors to actively manage their investments and achieve better financial outcomes.
  • Special interest rates for senior citizens and women depositors are another form of bonus offered by many financial institutions. These higher interest rates provide additional benefits to specific demographic segments, enabling them to earn more from their investments.

Benefits of bonuses in fixed deposit schemes

Here are a few of the benefits that you may receive through bonuses in fixed deposit schemes:

  • Enhanced returns: The primary benefit of bonuses in fixed deposit schemes is the potential to enhance your overall returns. By receiving extra monetary rewards in the form of bonuses, you can maximize your earnings from your investment.
  • Loyalty incentives: Bonuses act as loyalty incentives by rewarding investors for maintaining their FDs for a longer duration. This develops trust and encourages investors to stay committed to a particular financial institution's fixed deposit scheme.
  • Additional rewards: Bonuses provide an opportunity for investors to earn additional rewards beyond regular interest payments. This can make a significant difference in your total returns and help you achieve your financial goals faster.
  • Tailored benefits: Different types of bonuses cater to specific investor segments, such as senior citizens or women depositors. These tailored benefits ensure that investors receive additional rewards based on their unique needs and circumstances.

How to calculate FD returns with bonuses

Calculating FD returns with bonuses is needed to understand the potential earnings from your investment. By using an FD return calculator, you can estimate the total amount you will receive at maturity, taking into account both regular interest payments and any bonuses offered.

To calculate your FD returns with a bonus, follow these steps:

Step 1: Gather the required information such as the principal amount, rate of interest, tenure, and details of any applicable bonus.

Step 2: Use an FD return calculator or a formula to calculate the total interest earned over the tenure and add any bonus amounts.

Step 3: The result will be the total maturity value of your FD, including both regular interest payments and bonuses.

With an FD return calculator (also called an FD maturity calculator) or consulting with your financial institution, you can easily determine how much money you will receive at the end of a fixed deposit term.


The concept of a bonus in fixed deposit schemes goes beyond a mere financial add-on. It represents a strategic incentive designed to attract, retain, and reward investors. Understanding the intricacies of bonus structures and their role in enhancing returns provides investors with valuable insights into optimising their investment decisions within the framework of fixed deposit schemes.

To make informed investment decisions and maximise your earnings from fixed deposit schemes choosing the right bank with the best FD returns is essential.

FD return calculator and exploring the various types of bonuses available. Remember to choose a reputable financial institution like Mahindra Finance that offers competitive rates and attractive bonus schemes to enhance your returns.

Frequently Asked Questions

Q1: How can I calculate my FD returns?

A1: You can calculate your FD returns by using an FD return calculator or following a simple formula. Input the principal amount, rate of interest, and tenure to determine the total interest earned. Additionally, consider any applicable bonuses to get an accurate estimate of your FD returns.

Q2: Are fixed deposit schemes secure?

A2: Yes, fixed deposit schemes are a secure investment option. They offer assured returns and are backed by reputable financial institutions. However, it's essential to choose a reliable institution like Mahindra Finance to ensure the safety of your investment.

Q3: Can I withdraw my FD prematurely?

A3: Yes, you can withdraw your FD prematurely, but there may be penalties involved. It's advisable to check with your financial institution for the terms and conditions regarding premature withdrawals.

Q4: Are senior citizens eligible for any additional benefits in FD schemes?

A4: Yes, many financial institutions offer special interest rates or additional benefits for senior citizens investing in fixed deposit schemes. These tailored benefits recognise the unique needs of senior investors and provide higher returns on their investments.

Related articles

What Are The Tax Exemptions On Fixed Deposits? 

Fixed deposits (FDs) are a popular investment option for individuals looking for a secure and stable way to grow their savings. Apart from offering attractive interest rates, fixed deposits also provi...


February 5, 2024

The Inflation Challenge: Strategies For Maximizing Fixed Deposit Returns

Inflation is a force that affects every aspect of our lives, including our finances. It erodes the purchasing power of our money over time, making it essential to find ways to maximise our returns and...


March 4, 2024

Senior Citizen Fixed Deposit: Maximizing Returns with Senior Citizen FD Rates

As we grow older, it becomes crucial to plan our finances in a way that ensures a secure future, especially during our post-retirement years. Investing in a manner that offers stable returns with mini...


February 23, 2024