Choosing between investing in a fixed deposit or an investment bond requires careful deliberation, and evaluation of the advantages and disadvantages of both these investment vehicles. The success of any investment tool ultimately depends on how well it meets your requirements.
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Both fixed deposit and investment bond involve saving a certain amount of money for a fixed period. While FD interest rates are much higher than investment bonds, investment bonds offer more tax benefits.
To understand the difference better, take a look at the details of each investment option.
For those looking to grow their savings in a safe investment avenue, Fixed Deposit is a preferred avenue. Here’s a look at its features and benefits:
Investment bond is also a great option for those looking to reap tax benefits and grow their savings. Read on to know more.
To sum up, here’s a table detailing the differences between these two investment options:
|Feature||Fixed Deposit||Investment Bonds|
|Safety of deposit||Safety of deposit is high, when you choose a credible issuer with high safety ratings||Bonds are secure, but there are risks of bonds going unpaid|
|Frequency of payouts||The returns on your deposit are paid out monthly, quarterly, half-yearly, annually or at maturity – as per investor’s choice||The returns on your bonds are paid out annually, or you can get them on a cumulative basis|
|Credit rating||Credit ratings are mandatory for NBFCs||Issuers need to get the instrument rated by at least one agency|
|Taxation||As per investor’s tax slab||Only tax-free bonds are not taxable; others are taxed as per investor’s tax slab|
So, if you seek an investment option that is secure and gives assured returns, a fixed deposit is an ideal investment option. For those looking to grow their savings in a safe avenue, Bajaj Finance Fixed Deposit is a great option.
Here’s what makes a Bajaj Finance FD a preferred option to grow your savings:
By investing in a Fixed Deposit, you can get assured returns without any effect of market forces. Make a smart investment choice with Bajaj Finance online FD and reap an additional rate benefit of 0.10% by investing online (not applicable for senior citizens).
Check FD Interest Rates