In India, you can open a fixed deposit account by visiting a bank, finance company, or post office. The high post office FD rates allow you to earn high returns especially if you choose a longer tenor for your deposits. Also, as it is backed by the government, it provides guaranteed returns irrespective of the fluctuating market conditions. The benefits of investing in this FD scheme include tax exemption on the interest that you earn, a simple investment process, etc.
However, it does not offer the kind of flexible investment options that a modern fixed deposit plan can offer. The premature withdrawal terms of post office FD are also slightly more penalizing than other forms of FD. It is because you are allowed to withdraw your deposits only after they complete 6 months from the investment date.
Moreover, on making a premature withdrawal you will receive the deposited amount and the interest which is calculated based on the post office savings interest rate. Also, a deduction of 1% is levied on the interest earnings as a penalty. It means that your interest earnings will be quite ordinary if you withdraw your deposits earlier than the maturity date. Instead, you can think of investing in Bajaj Finance FD that offers better interest rates, flexible investment options, and lenient withdrawal policies. The following features of this fixed deposit scheme make it a lucrative investment alternate for you:
With Bajaj Finance FD, you get an FD interest rate of up to 6.75% that is the highest interest rate in India when it comes to the FD segment. Let’s take an example to determine whether it is a profitable investment avenue.
For instance, you deposit Rs. 20,00,000 in a post office FD for 3 years and deposit an equal amount for the same period in a Bajaj Finance FD. The below table shows the interest earnings and maturity amount that you can expect after tenor completion:
|FD plan||Amount||Tenor||FD Rate||Interest gains||Maturity Amount|
|Post office FD||Rs. 20,00,000||3 years||5.5%||Rs. 3,56,136||Rs. 23,56,136|
|Bajaj Finance FD||Rs. 20,00,000||3 years||6.75%||Rs. 4,32,953||Rs. 24,32,953|
You can see that though both post office FD and Bajaj Finance FD provide high returns, the returns offered by Bajaj Finance FD are significantly higher as compared to the 3-year time deposit. You can calculate the returns with an FD calculator by using other combinations of tenor and amount to confirm this substantial difference in returns.
Safety of investment
Bajaj Finance FD provides a safe environment for your deposits as they remain unaffected by the changing market dynamics. The high credit ratings of FAAA/stable and MAAA/stable provided by CRISIL and ICRA are also reassuring enough to count this FD scheme as one of the safest vehicles for achieving quick growth for your savings.
With Bajaj Finance FD, the investment can be withdrawn once a period of 3 months is completed. A nominal penalty will be charged and your interest earnings will be higher depending upon the period up to which your investment was locked in. The option of applying for a loan against FD instead of withdrawing the deposits is also available.
Also, you get a start-to-end online method to invest in this FD scheme. On using the online FD form, you also get a 0.10% higher FD rate. Senior citizens get a 0.25% higher FD rate on investing in Bajaj Finance FD through an online or offline method. All these benefits and features make Bajaj Finance FD one of the best fixed deposits in India.
Investing in a post office FD can help you earn a decent interest income. However, the limitations when it comes to tenor and withdrawal policies might make you think of other options as well. Bajaj Finance FD is a convenient, safe, and lucrative FD scheme. Bajaj Finance FD provides a tenor range that is flexible and the high FD rates of up to 6.75% ensure that you earn lucrative returns at maturity. Moreover, the online investment method, hassle-free withdrawal options, and features like loans against FD make it one of the best fixed deposits in India.