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What is Top-Up Fixed Deposit (FD) & Benefits Of Top-Up FD


by Mahindra Finance


April 26, 2024


5 mins read


If you're looking for a safe and reliable investment option in India, Fixed Deposits (FDs) are an excellent choice. They offer steady returns and security for your hard-earned money. But did you know that FDs also come with a unique feature called the Top-Up Fixed Deposit? This feature allows you to maximise your returns while maintaining the safety of a traditional FD. In this article, we'll explore what a top-up FD is and the benefits it offers.

Understanding the Top-Up FD feature

The Top-Up FD feature is designed for investors who want to enhance their returns and strengthen their financial strategies. It provides greater flexibility and potential for earning higher interest rates. You can figure out interest on FD using a fixed deposit interest calculator.

Let's understand how the Top-Up FD feature works with some scenarios:

1. Scenario 1: Imagine you have an existing FD of ₹1,00,000 with a tenure of 2 years, earning an interest of ₹15,341 at a rate of 7.20%. Instead of renewing your FD without a top-up, consider opting for the top-up feature.

  • If you choose not to top up your FD, the maturity amount after 2 years will be ₹1,33,035.
  • On the other hand, if you opt for the top-up feature before renewing your FD, the interest earned after 2 years will be more than ₹15,341.

2. Scenario 2: Now let's consider a scenario where you have a larger amount invested in an FD. Suppose you have ₹5,00,000 in an FD with a tenure of 5 years and an interest rate of 8.50%.

  • Without the top-up feature, the maturity amount after 5 years will be ₹7,98,735.
  • However, if you choose to top up your FD before renewal, you can earn even higher returns.

3. Scenario 3: In this scenario, let's assume you do not opt for the top-up feature and simply renew your FD.

  • The maturity amount after 2 years will be ₹1,33,035.

From these scenarios, it's clear that opting for the Top-Up FD feature can help you maximise your investment returns.

How to Avail the Top-Up FD feature

Availing the Top-Up FD feature is simple and convenient. Here's how you can do it:

  1. Visit the bank's website.
  2. Go to Internet Banking and log in to your account.
  3. Proceed to the Bank Account section.
  4. Select Deposits and navigate to the FD dashboard.
  5. Click on "Top-Up FD" and specify the amount you want to top up.
  6. Confirm your selection, and voila! Your top-up is complete.

A fixed deposit interest calculator can help you clearly see how much you can get as returns.

Benefits of Top-Up FDs

Now that we understand what a top-up FD is and how to avail it, here are some benefits of fixed deposit:

  1. Invest Funds at Higher Interest Rates: One of the significant advantages of the top-up option is that it allows you to invest additional money at higher FD interest rates during renewal. This means you can earn more on your investment compared to a regular FD.
  2. Flexibility in Choosing Top-Up Amount: The top-up feature offers flexibility in choosing the additional amount you want to invest. You can decide based on your financial goals and surplus funds.
  3. Digital Process: The top-up process is entirely digital and convenient. You can opt for it through internet banking, making it hassle-free and accessible. No need to visit a branch or fill out additional paperwork.

These are some benefits of fixed deposits in India.

Is Top-Up FD a Good Choice?

Now you might wonder if the top-up FD is the right choice. Well, if you have surplus funds and want to enhance your returns on the additional amount, leveraging the top-up feature can be beneficial. This is especially helpful when you have a lump sum to invest.

Additionally, the top-up feature proves advantageous when aligning your FD investment with specific financial goals. Whether you're planning for education expenses, purchasing a home, or extending your investment horizon, a top-up can enhance the effectiveness of your FD in meeting these objectives.


In conclusion, Mahindra Finance's Top-Up FD feature is an excellent tool for maximising your FD investments. With this feature, you can invest more money at higher interest rates and enjoy greater flexibility in choosing the top-up amount. The entire process is seamless and digital, making it convenient for investors. So why not explore the benefits of fixed deposit top-up today?

Remember, making informed financial decisions is crucial for your long-term financial well-being. If you're considering a fixed deposit top-up or any other financial product, always research thoroughly and understand the terms and conditions before investing.

Suppose you're ready to take advantage of the Top-Up FD feature or explore other financial solutions that suit your needs. In that case, Mahindra Finance offers a range of products and services tailored to help you achieve your financial goals. Visit our website or reach out to our expert team for personalised assistance.


Q: Can I modify the top-up amount for my FD?

A: Once the Top-Up FD feature is availed, the top-up amount cannot be modified. It's important to carefully decide on the additional funds you wish to invest.

Q: When can I avail of the Top-Up FD feature?

A: The Top-Up FD feature can be availed within 30 days before the maturity date of your existing FD. Make sure to utilise this timeframe effectively.

Q: What happens if I have an insufficient balance in my savings account on the maturity date of my FD?

A: If there is an insufficient balance in your savings account on the maturity date, your FD will be auto-renewed with the maturity amount.

Q: Will I get the benefit of top-up if I have opted for auto closure of my FD?

A: If you have set your FD instruction as auto closure on maturity after topping up, the FD closure proceeds will be credited to your savings account without deducting the top-up amount.

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