Which is better: Bajaj Finance Fixed Deposit Vs. Bank Fixed Deposit?

Fixed Deposit (FD) is a popular investment avenue in India. FDs offer assured returns at pre-determined interest rates for a certain investment period. They carry relatively lower risks than other financial instruments.

But, fixed deposits are not risk-free. They carry an interest rate risk. The best way to beat interest rate risk is to hold a combination of short-term and long-term deposits.

Currently, bank FD rates are very low. Interest rate rises unlikely in the near term due to the RBI’s monetary policies. In such situations, if you are speculating an FD investment, then choose an NBFC FD over a bank FD, as NBFC FDs usually carry higher interest rates.

Currently, Bajaj Finance FD is one of the best NBFC FD offering lucrative returns. It is better than a bank FD in many ways.

Bajaj Finance FD Vs Bank FD

Competitive interest rates

Cumulative Annual Interest Rate Table

Investor type(Seniors)

Bajaj Finance FD rates- 7.10%
Private bank 1 FD rates- 4.90%
Private bank 2 FD rates- 5.00%
Nationalised Bank FD rates- 5.20%

Investor type(Non-Seniors)

Bajaj Finance FD rates- 7.25%
Private bank 1 FD rates- 5.90%
Private bank 2 FD rates- 5.50%
Nationalised Bank FD rates- 5.70%

The above table clearly shows that Bajaj Finance Fixed Deposits carry a higher rate of return than bank FDs for the same investment tenure. Thus, you can grow your wealth faster with Bajaj Finance FD.

Systematic Deposit Plan (SDP)

Conceived on the lines of a recurring deposit, SDP is a unique offering by Bajaj Finance. There are two types of SDP schemes.

The Monthly Maturity SDP scheme allows you to invest nominal monthly amounts. Each deposit has a different maturity date. The interest rate also varies. The interest rate applicable on a periodic deposit is the prevailing market rate on the date of investment. You can choose to make between 6-48 deposits.

Under the Single Maturity Scheme, all your deposits mature on the same day. The investment tenure of subsequent deposits goes on reducing.

If financial discipline is your motive, then go for the monthly maturity plan. If building a large retirement corpus is your goal, then opt for the single maturity plan.

SDP schemes are not offered by traditional banks.

Multi-deposit facility

If you are tired of repeating the FD application process for deposits with varying maturities, opt for the multi-deposit scheme of Bajaj Finance. Under this scheme, you can open multiple time deposits carrying different interest rates and maturity dates with a single cheque payment. Both SDP and multi-deposit schemes are ideal for interest rate risk management. Not all banks offer this facility.

Safety

Bajaj Finance FDs are highly stable and reliable. They have continually received high credit ratings of ‘AAA’ from CRISIL and ICRA. It is the only NBFC in India to receive a high rating of ‘BBB’ from an international credit rating agency - S & P Global.

Not all banks have high credit ratings. Thus, with a Bajaj Finance FD, your money is in safe hands.

Online FD application

Are you tired of lengthy documentation and time-consuming FD application procedures? If yes, then open an online FD today with Bajaj Finance. It is a quick, trouble-free, and seamless process. Moreover, if you are a non-senior citizen, you get additional returns of 0.10% by booking an FD online.

So fill out an online application form, upload scanned copies of your supporting documents and your FD is booked within minutes.

Traditional banks may not offer this facility and even if they do, you do not get additional returns for opening an FD online.

Other Benefits

Bajaj Finance has many value-added features. Their website has an in-built FD interest rate calculator that allows you to calculate your returns beforehand.

Loan Against Deposit facility, FD application through debit cards at select locations, auto-renewal option, premature withdrawal facility, and flexible investment tenures are the other value-added features offered by Bajaj Finance FD.

Thus, Bajaj Finance FD is a complete package compared to traditional bank FDs.