Investing a part of your income is extremely important, not only to accumulate a reserve for financial emergencies, but also to plan for retirement. Moreover, by investing, you can ensure that your savings grow at a rate that can beat inflation. To achieve these goals, there are many options available. Often, investors choose instruments with lower risk, which usually include fixed investment options like fixed deposits, PPF, and government schemes.

While avenues like mutual funds and stocks offer attractive returns, these are market-linked products, which carry the risk of fluctuating returns that may result in losses. On the other hand, FDs are not subject to market variables, and have a lower degree of risk associated with them. Despite availability of several low-risk financial instruments in the market, find out what makes FD a better choice than other investment options.

Public Provident Fund (PPF)

Currently, PPF offers returns at a rate of 7.9%, along with tax benefits. It is backed by the government and this is what makes it a low-risk instrument. However, the downside of PPF is that it comes with a lock-in period of 15 years. Even with regards to partial withdrawals, PPF is rather restrictive. You can only do so post the 7th year, on meeting certain conditions.

On the other hand, options like a Bajaj Finance Fixed Deposit enable you to make partial withdrawals, as per your requirement. In fact, you can even avoid this and take a loan against your FD of up to Rs. 4 lakhs. Moreover, Bajaj Finance offers higher FD interest rates of up to 8.70%. Best of all, there is no lock-period. You can invest up to 5 years, as per your financial goals.

Senior Citizens Savings Scheme (SCSS)

SCSS enables senior citizens to obtain a regular income after the age of 60 years. The scheme offers an interest rate of 8.6% and is a safe instrument offered by the Government of India. You can invest for a tenure of 5 years and renew this investment once, for a block of 3 years.

In comparison, not only does a good company FD allow you to invest as per a tenure of your choice, but it also offers you a higher interest rate. For instance, Bajaj Finance offers a Fixed Deposit for Senior Citizens where you can earn better returns with lucrative FD interest rates of up to 8.70%, when you invest for at least 36 months with interest payable at maturity.

You can invest for up to 5 years and renew your investment as many times as you wish to. By choosing the auto-renewal facility you can do so without additional paperwork, and earn an extra 0.10% interest as a reward as well.

Check the returns that you can earn as a senior citizen when you invest in this FD.

You can invest for up to 5 years and renew your investment as many times as you wish to.
You can invest for up to 5 years and renew your investment as many times as you wish to.


In addition to attractive FD interest rates with Bajaj Finance Fixed Deposit, you can choose the option to receive periodic payouts, wherein you can set up a stream of regular income for post-retirement expenses. You can simply use the Bajaj Finance Fixed Deposit calculator to forecast your returns and then opt to receive monthly, quarterly, bi-annual or annual payouts as per your needs.

For instance, assume that you wish to receive Rs. 20,000 per month to meet your fixed living expenses as a senior citizen. To ensure this, you can invest Rs. 35 lakh for a tenure of at least 36 months.

You can simply use the Bajaj Finance Fixed Deposit calculator to forecast your returns.
You can simply use the Bajaj Finance Fixed Deposit calculator to forecast your returns.


Recurring Deposit (RD)

RDs are a type of deposit where you contribute on a recurring basis. They offer you returns at a fixed interest rate of 5% to 7.25% and you can opt for one from a bank. Apart from offering you a higher interest rate, FDs also offer better returns because a lumpsum amount earns interest for a fixed period. But when you invest in an RD, if you’re investing for 24 months, for example, the first instalment earns interest for 24 months, the second earns for 23 months, so on and so forth. Apart from this, fixed deposits offer more leeway with regards to partial and premature withdrawals, making them a better pick.

Given the comparisons stated above, it’s easy to see how investing in an FD benefits your portfolio, regardless of your risk appetite. Moreover, by choosing a reputed issuer, you can increase the safety of your investment. For instance, Bajaj Finance ensures that you get your returns in full and on time. The NBFC offers Fixed Deposits at an interest rate of up to 8.70% and has received the highest ratings of FAAA and MAAA from rating agencies CRISIL and ICRA respectively.

Bajaj Finance is also the only NBFC to get an international rating of ‘-BBB’ from S&P Global. Additionally, you can choose a tenure between 1 to 5 years, start investing with a minimum of Rs. 25,000, and use the multi-deposit facility and auto-renewal facility to add more value to your investment.

What’s more, to start investing all you have to do is fill out the simple Bajaj Finance online FD form. A representative will call you back and guide you on how to book an FD so that you can start building a corpus for your future without any delay.

Disclaimer: This content is released by Bajaj Finserv. No HT journalist is involved in creation of this content.

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