When you start investing, you are advised to create a diverse portfolio. A diverse portfolio is required to balance the risk involved in certain schemes and get ensured returns. FD investments are considered the safest investment options that bring down the risk level of your portfolio.
Apart from being safe, Fixed Deposits offer guaranteed returns. You can either invest in bank FD or in a Company FD to get the benefits of safe and fixed returns. Both the company’s and Bank FDs have different features as well as different interest rates.
Bank FDs
In order to select one from either bank FD or Company FD, you should know the features and benefits of both. Read this article to know about the benefits and considerations of Bank FD and Company FD and to take an informed decision.
Recommended For You
- Do You Need PAN for Tax Exemption on PNB HFL Home Loan?
- The Best Senior Life Insurance Company Reviews
- Payday Loans No Credit Check – Bad Credit Acceptable
Bank Fixed Deposit
Fixed Deposits were offered by banks before the NonFinancial Banking Companies started providing FD facility. You can apply for a Bank FD through an online application form or visit the bank branch to apply for an FD account. The benefits of investing in a bank FD are as follows:
Benefits
- Bank FDs are opted by investors who want to avoid the risk factor in investments completely.
- If you invest in bank FDs for longer terms, you can get higher returns.
- Flexible FD tenors starting from 7 days to 10 years.
Considerations
- FD interest rates are lower than company FDs. Usually, bank FD interest rate lies between 6% to 7%.
- You can get high returns by investing for longer tenors.
- Do not provide easy liquidity as the money is locked for a given tenor.
Company Fixed Deposits
Various Non-Banking Finance companies provide FD facilities at different interest rates. It is not necessary to be a customer of the NFBC to invest in it FD. You can easily open an FD account with a selected company through an online application. The benefits of investing in company FD is as follows:
Benefits
- Higher rates of returns than bank FDs. For example, Bajaj Finance provides FD interest up to 8.75%.
- Provide facility to select flexible tenors.
- More benefits for senior citizen FDs.
Considerations
- Company FDs are unsecured, so they involve risk factor.
- By investing in companies that are certified by CRISIL or ICRA you can assure safe and guaranteed returns.
- However, by investing in a right company, you get multiple benefits and offers.
Select the Best Company Deposits
Out of many companies who provide FD facilities Bajaj Finance provides the best FD services with one of the highest FD interest rates. Additionally, Bajaj Finance provides a special 0.25% extra interest rate for customers who invest for 15 months.
Moreover, senior citizens can enjoy FD investments at a higher interest rate of 8.70%. To get an estimate of the returns, you will get for a different combination of principal amount investment tenor you can use the FD calculator provided on the Bajaj Finserv website.
You can apply for a Bajaj Finance FD account easily through an online application and select the FD tenor that best suits you.