Comparison Between Best FD in India V/S Post Office FD scheme

Investing is an important part of your savings and Fixed Deposits are a well known and a very significant  investing option. Investment in a fixed deposit means that you grow your money easily and earn continuous returns on your investments. A fixed deposit let’s you invest your money in a fixed deposit scheme for a fixed tenure and a given interest rate based on different criteria and gives you a return guaranteed as an interest income at the time of maturity.

A fixed deposit, on maturity, returns your principal amount along with the interest earned on the principal amount that is invested. Fixed deposit is a passive source of income from where you can earn monthly income. There are various methods and places for investing in Foxed deposits. Firstly, there are Commercial and State banks that provide the option of investing in fixed deposits. Then there are the Non-banking Financial Companies (NBFC)  that provide the option of Fixed Deposit.

One such example of an NBFC is Bajaj Finance. Bajaj Finance provides one of the best interest on fixed deposits in India. Its interest rate goes up to 6.5%. It also goes higher by 0.25% to 6.75% for senior citizens. Hence, Bajaj Finance Fixed Deposit gives one of the highest returns in India. Apart from banks and NBFCs, there are also the post office Fixed Deposit schemes.

The post office fixed deposit is a fixed deposit investment issued by the Indian Postal Services. Similar to a bank or company Fixed Deposit, a post office Fixed deposit enables you to invest your money for a given interest rate and a fixed tenure. The longer the time you keep the money, the higher will be its interest rate.

A major difference between the Post office fixed deposit and other fixed deposits is that the post office fixed deposit is backed by the sovereign guarantee of the Government of India.

Investing in post office fixed deposit id safe and risk free as it is guaranteed by the government of India. The interest rate for post office fixed deposits are comparable on the basis of number of years you lock-in your money in the fixed deposit. You have an option to lock in for 1 year, 2 years, 3 years or 5 years.

The interest rate for 1 year 2 year and 3 year fixed deposit scheme is 5.5% per annum  while for 5 years it is 6.7% per annum. Bajaj Finance Fixed Deposit on the other hand has a different interest rates. For a 1 year fixed deposit, Bajaj Finance provides 5.65% interest rate for 2 year fixed deposit, it provides 6.10% interest rate and above 2 years it provides an interest rate of 6.5%. Bajaj Finance focuses on more interest income for senior citizen, and hence the interest rate for senior citizen fixed deposit is 0.5% more than the normal FD rates.

Another major difference between a post office fixed deposit and bajaj finance fixed deposit is that the interest earned is paid out on a monthly basis for a post office fixed deposit. Bajaj Finance Fixed Deposit gives an option of payout of interest either on a cumulative basis, i.e. all at once or non-cumulative basis, i.e. after frequent interval of time.

Bajaj Finance Fixed deposit gives out better interest rates anytime especially for senior citizens and hence play an important role in your portfolio of investments. If you are worried about the risks of Bajaj Finance Fixed deposit interest, then you should note that it has the highest ratings from CRISIL and ICRA which are two of the most reputed credit rating agencies in India. This should assure you that your investment is safe with Bajaj Finance Fixed Deposit. So instead of delaying and losing on an opportunity to earn, you should start investing in Bajaj Finance Fixed Deposit.

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About the Author: Zunair Maqbool

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