Bank Fixed Deposits or company Fixed Deposit: which one to choose?
If you are standing at the crossroads, wondering what other and better investment option exists other than bank fixed deposits, then the answer is a company fixed deposit. A considerably higher company fixed deposit interest rate will fetch you a larger and attractive return. So be prudent by investing your household savings wisely.
What is bank fixed deposit?
A bank fixed deposit (FD) or term deposit allows you to deposit money for a fixed tenure like 6 months, 1 year, 3 years, 5 years, etc. Compared to your savings account, a bank fixed deposit earns a comparatively higher interest rate. Safety of principal and guaranteed investment return has made bank fixed deposit a traditional investment practice.
What is company fixed deposit?
As an investor, you can deposit money with companies, corporates or NBFCs for a fixed tenure with prescribed company FD interest rates. An investment trend with multiple benefits, a company FD offers high interest but it is advisable to look into the pedigree and profile of the company before investing.
Bank fixed deposits Vs. Company fixed deposit:
You must have observed how banks have diminished their fixed deposit interest rates over the years. This dip in interest rate has prompted investors like you and me to scout for better alternatives other than a bank fixed deposit. A fluctuating bank FD interest rate is sure to induce worry while rapid plunges in interest rates is a major concern for any investor. As an investor, your main objective while investing is to earn a good return. Company FD interest rates are much higher than bank fixed deposit rates. Their schemes offer special interest rates for senior citizens, shareholders, company employees, etc. Company fixed deposit offers little to no volatility. Any up and down in the market or an upheaval in the economy will not affect your company fixed deposit. If you are a conservative investor, then bank fixed deposit will most likely work for you. On the other hand, if you are looking for that extra edge in your FD investment return, then company fixed deposit is a possible investment option for you with greater returns. The only thing for a prudent investor to do is to look into the CRISIL or ICRA safety rating of a company FD and make sure it is stable and safe.
Fixed deposit with Bajaj Finance Limited:
If you are a keen investor with an open mind who wants to pump up your investment portfolio, then Bajaj Finance’s fixed deposit schemes are just for you. You can opt for FD interest pay out as cumulative or non-cumulative.
Advtanges of FDs offered by Bajaj Finance Limited:
- Higher company FD interest rates for senior citizens:
An additional interest rate as high as 0.25% more than the average is offered to senior citizens. Not only is their life savings and hard earned money secured, but the added benefit of 0.25% extra interest makes a whole lot of difference.
- A lucrative investment option:
You no longer have to rely on mediocre fixed deposit interest rates as a minimum FD interest rate of 7.85% can soar to a maximum of 8.10% depending on the investor type. What’s more, your fixed deposit tenure can vary from 12 months to 60 months.
- Stability, credibility and reliability:
Company fixed deposit schemes with Bajaj Finance Limited has earned excellent approval ratings from leading financial institutions such as ICRA and CRISIL.
- Easy access:
You can apply easily through online registration. As an investor, you can manage your FD investments online too. Also there is a huge network of FD service available across 200 plus cities in India, which gives you eay access to information on your investment.
- Minimum deposit of Rs.25,000
It is a known fact that higher the sum invested, higher is the investment return. Bajaj Finance offers the flexibility to begin investing in company fixed deposit with a mere 25,000.
- Fixed deposit calculator:
Bid goodbye to guess work. With an FD calculator you can smartly determine and compare the maturity amount with different tenures and different company FD interest rates correctly and conveniently to make the best investment.