Fixed-income instruments like fixed deposits (FDs) and investment bonds are popular among investors who prioritise capital safety and predictable returns. While both fall under the low-risk investment category, they differ in structure, liquidity, taxation, and payout flexibility. Understanding these differences helps you align your investment choice with your financial goals, income needs, and risk comfort.
For investors looking to balance stability with reliable growth, fixed deposits—especially those offered by highly rated NBFCs—often provide greater clarity and ease of management.
Bajaj Finance Fixed Deposits offer a combination of high safety ratings, competitive interest rates, and flexible payout options—making them a preferred choice for conservative investors. Book FD.
Should you invest in a fixed deposit or an investment bond?
The effectiveness of any investment depends on how well it fits your financial needs. Both fixed deposits and investment bonds are fixed-income instruments, but they cater to different investor preferences.
Fixed deposits generally offer higher certainty, simpler structure, and flexible payouts, while investment bonds may appeal to investors seeking specific tax efficiencies or tradability. Although some bonds provide tax advantages, they often come with lower interest rates and limited payout flexibility.
What is Fixed Deposit?
A fixed deposit (FD) is an investment where you deposit a lump sum for a predefined tenure at a fixed interest rate. The returns are guaranteed and remain unaffected by market fluctuations. Interest earned is either paid periodically or compounded and paid at maturity.
FDs are offered by banks, NBFCs, and post offices, and are considered one of the safest investment avenues for risk-averse investors.
Bajaj Finance Fixed Deposits are backed by CRISIL AAA/STABLE and [ICRA]AAA(Stable) ratings, offering a high level of safety with attractive returns. Book FD.
