Post office FD v/s Bajaj Finance FD: Check Interest Rates and Other Benefits

Post office FD v/s Bajaj Finance FD: Check Interest Rates and Other Benefits

You might be thinking of investing in Post office FD as it offers stability to your invested amount.  Bajaj Finance FD is a company fixed deposit scheme that provides high returns and assured returns. To determine the better investment option among the two, let’s compare them based on their interest rates, features, investment method, and other aspects:

FeaturePost Office FD Bajaj Finance FD
Tenor options1, 2, 3, and 5 yearsFlexible tenor ranging from 12 to 60 months 
Rate of Interest 5.5% to 6.7%5.65% to 6.75%
Application process Either online or offlineComplete online procedure from start to finish
Depositing options Either cash or chequeUPI, net banking, and debit card (certain locations only)
Early withdrawal Allowed once the investment completes 6 months Allowed once the deposits complete a tenor of 3 months 
Interest Payout Options Only annual payouts are availableAnnual, bi-annual, quarterly, and monthly payouts options are available 

From the above table, it is easy to determine the better option in terms of tenor flexibility, withdrawal options, method of investment, etc. Bajaj Finance FD offers an FD interest calculator India on its portal. This online FD calculator provides an accurate estimation of the returns. 

Along with better liquidity options that you get with Bajaj Finance Fixed Deposit, you can also benefit from the loan offered against deposits. Up to 75% of the deposit value can be obtained from these loans and this might solve your financial need during an emergency. To compare the returns offered by these instruments, check the below example:

Mr. Sanghavi invested Rs. 35,00,000 in a post office FD for 3 years. However, his friend Mr. Jaiswal also invested the same amount for the same tenor in Bajaj Finance FD. To learn who earned a higher interest income, check the following table:

Investment AmountTenorInterest Income
Post Office FDRs. 35,00,0003 years6,23,238
Bajaj Finance FDRs. 35,00,0003 years 7,57,667

The additional features offered by Bajaj Finance FD can be checked below:

Higher rate for senior citizens – Senior citizens become eligible for a 0.25% higher FD rate with which they can earn better returns than others. No such additional post office interest rate is applicable on post office FDs. 

Complete online process – While you can invest in post office FD via both online and offline means, you will have to deposit the payment by cash or cheque by visiting your nearest post office. 

Bajaj Finance FD provides you the luxury of opening the FD account online and even the payment can be done online via net banking and UPI. You also have the option of paying through debit cards from certain locations. A 0.10% higher FD rate is applicable on investing in Bajaj Finance FD online that cannot be availed with post office FDs. 

Systematic Deposit Plan – You may invest in SDP that is a monthly deposit scheme launched by Bajaj Finance. As per this deposit scheme, investment can start with a meagre monthly deposit of Rs. 5000. You can also invest in multiples of Rs. 5000 if possible. The tenor for each deposit can be the same or it can vary as per your choice of SDP variant. 

The Single Maturity Scheme is an SDP variant that provides the maturity proceeds of all the deposits along with the deposited amount at once. The Monthly maturity Scheme provides maturity proceeds and deposits one after another as they mature. It is because all the deposits are locked in for the same tenor in the second variant. 

SDP is a good choice for individuals who have started earning and those who want to invest every month instead of waiting to accumulate a bulk amount. Both SDP and Bajaj Finance FD are safe investment avenues as they have been recognized by CRISIL and ICRA as stable instruments. Therefore, your savings are safe in either of these instruments.

Leave a Reply