Should you invest in a fixed deposit or an investment bond
The success of any investment tool depends on how well it meets your requirements. When planning to invest in a fixed deposit or an investment bond, it is essential to evaluate the advantages and disadvantages of both these investment avenues. Both FD and investment bonds are fixed-income savings instruments. While FD interest rates are higher than investment bonds, investment bonds offer more tax benefits.
Both fixed deposits and investment bonds involve saving a certain amount of money for a specified period. While FD interest rates are much higher than investment bonds, investment bonds offer more tax benefits.
Features and benefits of fixed deposit
For those looking to grow their savings in a safe investment avenue, a fixed deposit is a preferred tool with A fixed deposit is an ideal tool for those looking to expand their savings in a safe investment avenue.
- They provide incredible growth and maturity to your savings without being affected by market fluctuations
- FD is an ideal option for senior citizens, who can also benefit from higher interest rates
- Banks, NBFCs and post offices issue FDs. If you’re looking for a strong balance of safety and returns, it is best to choose FDs issued by institutions with high safety ratings, making them a credible investment option
- Fixed deposit enables you to meet urgent cash needs, with facilities such as loans against FD
- They can help you earn more from your savings as compared to a savings account
- FD enables you to choose the frequency of returns. For example, if you want monthly returns, you can apply for a non-cumulative fixed deposit, whereas to receive lumpsum interest, you can apply for a cumulative fixed deposit
- The returns from fixed deposits can be used for various purposes like financing a holiday, purchasing an asset or even funding your child’s education
Features and benefits of investment bond
An investment bond is also an excellent option for those looking to reap tax benefits and grow their savings. Read on to know more.
- These bonds provide scope for capital appreciation so that you can make substantial financial gains
- The interest rate on these bonds is much lower than that offered by fixed deposits
- The returns from investment bonds aren’t subject to TDS or even tax. This means that you can keep most of your income from the interest gains without planning for tax deductions
- These bonds can be sold to another party later
- Investment bonds may or may not have flexible tenors
- These bonds do not let you choose the frequency of your returns. Instead, there is a fixed time when your returns will be paid to you
- Bonds are secured but not insured. This means that you do not have absolute safety. In case a bond goes unpaid, you only have rights over the assets submitted as collateral
So, if you seek an investment option that is secure and gives assured returns, a fixed deposit is an ideal investment option. Bajaj Finance Fixed Deposit is an excellent option for growing their savings in a safe avenue.
Here’s what makes a Bajaj Finance FD a preferred option to grow your savings:
- Highest safety ratings of FAAA by CRISIL and MAAA by ICRA
- Lucrative interest rates up to 7.60% p.a.
- Flexible tenors ranging from 12 to 60 months, with the option to receive pay-outs periodically or at maturity
- End-to-end paperless online FD process to enable you to invest from the comfort of your home
- Monthly savings option with Systematic Deposit Plan that enables you to save with just Rs. 5,000 per month and grow your savings easily
By investing in a fixed deposit, you can get assured returns without market forces. Make a wise investment choice with Bajaj Finance online FD and grow your savings effortlessly.