Bajaj Finance FD Vs Bank FD: Which will give more returns for your fixed deposit money?

bajaj finance fd vs bank fd

A stable investment option, flexible tenor, easy investment method, etc. are the various reasons due to which investors prefer investing in a fixed deposit. However, the returns provided by it are very much dependent on the applicable interest rate. The interest rate of fixed income options have been lowered due to the reduction of repo rates by several points. This means that the bank FDs might not fulfill your expectations as of now when it comes to interest gains or returns.

If you are looking for a high-paying FD that is also feature packed, then you must take a look at the FD plans offered by Bajaj Finance. This is because its FD plans offer better returns and investment options than bank FDs. The reasons for the same are mentioned in the below points:

Best rate of interest

The FD interest rates 2021 of up to 7.25% offered by Bajaj Finance is one of the best FD rates you will get today. This extra interest rate makes it far ahead than bank FDs that are offering interest rates in the range of 3.5 to 5.5%.

Not only that, this difference of interest rates can be felt across all the customer categories, tenor ranges, and FD types. You can also compare the returns provided by a bank FD and Bajaj Finance FD by using a fixed deposit calculator that is easily available on the internet these days.

Suppose that you have invested Rs. 10,00,000 in a bank FD and Bajaj Finance FD and selected a lock-in period of 5 years for both these deposits. Now, the returns you will get after 5 years from each of these fixed deposit plans is given in the below table:

FD PlanDeposit AmountInterest RateTenorInterest EarningsMaturity Amount
Bank FDRs. 10,00,0005.5%5 yearsRs. 3,14,067Rs. 13,14,067
Bajaj Finance FDRs. 10,00,0007.25%5 yearsRs. 4,19,013Rs. 14,19,013

Flexibility by all means

Bajaj Finance FDs come with a flexible tenor that ranges from 12 to 60 months. Apart from the flexibility of tenor, it also lets you choose the kind of FD type (cumulative or non-cumulative) that you want to invest in.

Moreover, you also have the option of investing in more than one FDs at a time. For this, you will have to opt for the multi-deposit facility that lets you invest in various FD plans and types at once.

Not only that, but you also need to submit a single cheque to invest in all the FD accounts at once. Such flexibility can be hardly seen anywhere else, let alone bank FD plans!

Online process of investment

An online FD form is provided by most banks and finance firms. However, the option of making an investment from scratch to end via an online process is quite a deal breaker for those who cannot afford to step outside the house due to injuries, sickness, or any other reason. Bajaj Finance is giving you this option plus an additional 0.10% FD rate for choosing the online option.

Also, if you are a senior citizen then you become eligible for an extra 0.25% interest rate. Moreover, you will get the option of choosing between quarterly, six-monthly, yearly, and monthly interest payouts irrespective of whether you are a senior or non-senior.

These amazing features are backed by the solid credit ratings conferred upon by ICRA and CRISIL for ensuring the safety of deposited capital makes it one of the best FD instruments to invest your money in!

A fixed deposit plan is preferred by investors due the flexible tenor, stable returns, and many other options that it provides. However, the returns of an FD plan depends on its interest rate and due to the repo rate cuts implemented by RBI, the bank FD rates are at an all time low. To counter this, you can explore other options like corporate FDs offered by Bajaj Finance that are still offering an attractive interest rate on their deposit plans. Apart from the high rate of interest, you also get a seamless online investment method that comes with an extra 0.10% interest rate.

Senior citizens get 0.25% additional FD rate and you get to choose the periodic interest options as per your convenience irrespective of whether you are younger or older than 60. All these options coupled with the safety of your invested capital make Bajaj Finance FD one of the coolest alternatives to conventional bank FDs in the market.

Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.

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