As we approach the end of yet another year, there is much to celebrate. One of these reasons for celebration is the launch of Bajaj Finance’s new fixed deposit scheme, which promises unmatched returns to its customers. With increased rates of up to 8.85% p.a., this is an offer that every investor should invest in.

In recent years, fixing a deposit has become a popular investment option for many individuals. It is a secure, low-risk option that offers good returns on investment. It is no wonder then that Bajaj Finance’s scheme has caught the attention of many investors.

A fixed deposit (FD) is a type of account where an individual deposits a sum of money for a set period of time, and in return, gets a guaranteed rate of interest. The amount deposited cannot be withdrawn before the maturity date, and there are penalties for early withdrawals. But the interesting part is, you do not need to open any new account for investing in Bajaj Finance Fixed Deposit.

Investing in an FD is an excellent way of securing financial stability and long-term savings. It is also easy to book an FD online. With just a few clicks, customers can open an account and start investing. The Bajaj Finance app, for instance, is a convenient option that customers can use to book their FD online.

The app has an FD calculator that helps customers calculate interest rates and choose the best option that suits their investment goals. It’s no wonder that Bajaj Finance has become a popular choice with investors.

However, as with any investment, it is important to do one’s due diligence and compare the rates offered by different banks and financial institutions. In this regard, let us take a look at how Bajaj Finance’s new FD scheme stacks up against other popular investment apps such as HDFC, Axis, ICICI bank, Kotak Mahindra Bank, and others.

One thing to note is that FD rates vary depending on the amount deposited, the tenure, and other factors. Therefore, we need to compare the rates offered by different banks to like-for-like scenarios.

1. HDFC Bank: HDFC Bank offers fixed deposits through its mobile banking app, offering interest rates ranging from 6.75% to 7.15% p.a. for various range of tenors. HDFC Bank’s investment app is user-friendly, and senior citizens can easily invest in FDs using the app with a few clicks.

   2. ICICI iMobile app: ICICI Bank’s mobile banking app, iMobile, provides several fixed deposit options, including the FD Xtra account, offering interest rates ranging from 7.10% to 7.65% p.a. The app’s interface is simple and easy to use, enabling senior citizens to invest in FDs comfortably.

   3. Axis Bank: Axis Bank’s investment app provides attractive interest rates on fixed deposits ranging from 6.70% to 7.10% p.a. for tenors ranging from seven days to ten years. Moreover, the app’s interface is user-friendly, enabling senior citizens to navigate and invest seamlessly.

   4. Kotak Mahindra Bank: Kotak Mahindra Bank offers fixed deposits through their mobile banking app, providing interest rates ranging from 7.00% to 7.10% p.a. for various ranges of tenors. The app’s interface is easy to use, with senior citizens being able to invest comfortably.

With these figures in mind, it is clear that Bajaj Finance’s FD scheme offers highly competitive rates of up to 8.85% p.a. for a tenure of 42 months. This is significantly higher than the rates offered by other banks.

The best part of this scheme is that it is available online, and customers can book their deposits from the comfort of their homes. Additionally, Bajaj Finance’s FD calculator app helps customers calculate returns and choose the right tenure that aligns with their financial goals.

FD Vs Mutual Mutual Funds: A comparison

In the world of finance and investments, there are different options available to individuals looking to grow their wealth. Two such popular investment options that are often compared are fixed deposits (FDs) and mutual funds.

FDs are fixed-term investments where individuals deposit a lump sum of money with a bank or other financial institution and earn interest on it. On the other hand, mutual funds are investment vehicles where individuals pool their money with other investors and invest in a diversified portfolio of stocks, bonds, and other securities.

Both FDs and mutual funds offer different benefits and have their unique drawbacks. Let us take a closer look at how they compare.

Returns on Investment

FDs offer a guaranteed rate of interest, and the rate remains fixed for the entire tenure. The interest on FDs is usually paid out monthly, quarterly, or annually, depending on the terms of the FD. On the other hand, mutual funds do not offer guaranteed returns, and the returns are subject to market fluctuations. Mutual fund returns can also be paid out regularly or can be reinvested.

Risk

FDs are considered low-risk investments because the interest rates are guaranteed, and the principal amount is also secure. In comparison, mutual funds are higher-risk investments as they are subject to market volatility. Investors are exposed to the risk of the market fluctuations, and their investment could go up or down.

Liquidity

FDs have a fixed term, which means that the investment cannot be withdrawn before the maturity date, without incurring a penalty. In contrast, mutual funds offer greater liquidity, and investors can redeem their investments at any time, subject to market conditions. Though, certain mutual funds have a lock-in period of a few years.

Diversification

FDs are not diversified investments as the returns are dependent on a single entity – the financial institution where the investment is made. On the contrary, mutual funds invest in a portfolio of assets, providing investors with diversification to mitigate the risk of any one investment underperforming.

Taxation

The interest earned from FDs is taxable as per an individual’s tax slab, whereas mutual fund returns are taxed based on the type of mutual fund and the holding period. The tax liability on mutual funds is calculated based on the capital gains earned upon selling the mutual fund investments.

The choice between FDs and mutual funds is a personal one and depends on an individual’s risk tolerance, investment goals, and investment horizon. Those looking for guaranteed returns and lower risk may opt for FDs, while those seeking capital appreciation and diversification may choose mutual funds. It is always advisable to consult a financial advisor, do thorough research, and understand the terms and conditions before making any investments.

In conclusion, Bajaj Finance’s New Year gift to its customers is an enticing offer that investors should not miss. The opportunity to earn unmatched returns on an FD investment is a rare and valuable gift. It is also commendable to note that the company has continued to prioritize digital solutions, making it easy for customers to invest and manage their finances. Hopefully, this trend will continue, and other institutions will follow suit, making financial management a stress-free affair for all.