Fixed Deposit is an investment instrument wherein you invest a lump sum amount for a stipulated period of time at a fixed interest rate. Your investment is secured at a pre-decided interest rate and is not subject to change as per market forces. 

Banks and Non-Banking Financial Companies (NBFCs) offer fixed deposits. Bank deposits are secured as they are insured up to an amount of INR 1 lakh (by Deposit Guarantee Corporation of India). However, they offer a low rate of interest. Company FDs offer higher interest rates as compared to bank FDs, but they aren't insured like bank FDs. However, some company FDs like the one from Bajaj Finance is highly credible and secure as it is accredited by ICRA and CRISIL. Also, since it’s a company FD, the rate of interest is higher than bank FDs and one of the best in India when compared with other company FDs.

How Bajaj Finance Fixed Deposit is better than: 

• Savings Account 

Fixed deposits provide higher growth and flexibility to your surplus money parked in a savings account. The savings account offers interest rates in the range of 2-3%. However, Bajaj Finance Fixed Deposits offer much higher interest rates. Currently, you can avail a rate of 8.75% for a 3-year deposit. The rate of interest for senior citizens is even higher. You can calculate the returns on your fixed deposit using the online FD calculator. 

• Provident Fund

Provident fund is an important retirement fund. But this money is not liquid and stagnates until retirement. Bajaj Finance FDs are highly liquid and flexible investments that let you select tenor, payouts, and deposit sum as per your needs. You can even raise a loan against FD in times of financial crisis. 

EPF investments are debt focussed, and there is no equity exposure. With inflation, you might be actually receiving negative returns on your EPF investment. Bajaj Finance FDs with short tenors are ideal for safeguarding your investments against inflation.

• Equity 

Equity investments come with a lot of risks. To ensure good returns from your equity investments, you need to monitor them continuously. If you prefer risk-free investments that can be easily managed, Bajaj Finance Fixed Deposit is a good option. It comes with the highest safety ratings in the industry- CRISIL's FAAA (stable) rating and ICRA’s MAAA (stable) rating. It is the most suitable option to grow your money without feeling the impact of market fluctuations. Also, online FD account access and online FD calculator help you easily manage and track your investments. 

• Life Insurance

Fixed Deposits are investment instruments whereas life insurance is a form of risk cover. 

Bajaj Finance Fixed Deposits are a perfect choice for short-term investments and can be started with a minimum amount of INR 25,000. They are highly liquid, and you can break them anytime you want.

On the other hand, the term for most life insurance policies starts from 10-years extending up to a lifetime, and the premium depends on your age and health conditions. It can yield returns only after 20-25 years. 

• PPF

PPF offers competitive returns however they have a lock-in period of 15 years. Bajaj Finance Fixed Deposits have flexible tenors ranging from 12 months to 60 months. 

The interest rate for PPF is determined by Government policies. You can avail a loan against PPF balance only after the third year until the sixth year. Bajaj Finance Fixed Deposits offer attractive interest rates (better than PPF) which are further higher for senior citizens. You can avail a loan against Bajaj Finance FD for 75% of the amount anytime. Premature withdrawals are easy.

• Mutual Funds

In the case of mutual funds, the returns depend on the underlying securities. Hence, they have a higher risk as compared to fixed deposits. 

The interest rates keep fluctuating for mutual funds, and hence it is not certain how much gains you will earn. Bajaj Finance FD interest rates are pre-determined and fixed. Upon maturity, you will earn the amount you are entitled to.

Bajaj Finance Fixed Deposit is the most suitable investment option which offers assured, high and risk-free returns. You can choose the frequency of periodic interest payouts to earn regular income. Allocating a portion of your savings to Bajaj Finance FD will also help you to balance against the risks of other market-linked investments in your portfolio.