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In summary
Fixed Deposits and Treasury Bills differ mainly in tenure, return structure, liquidity, and issuer.
- Issuer: FDs are offered by banks and eligible deposit-taking institutions, while T-bills are Government securities.
- Tenure: Bajaj Finance FDs offer 12 to 60 months, while T-bills have 91, 182, or 364-day tenures.
- Returns: FD interest is predetermined, while T-bill returns arise from the discount to face value.
- Liquidity: FDs have premature withdrawal conditions, while T-bills can be traded in the secondary market.
- Investment amount: Bajaj Finance FDs start at Rs. 15,000, while T-bill bids start at Rs. 10,000.
Your investment horizon and cash flow requirements should guide the comparison.
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What is a Fixed Deposit?
A fixed deposit is an investment where you deposit a lump sum for a selected tenure. The investment earns interest according to the applicable rate and payout option. Bajaj Finance Fixed Deposits currently offer rates up to 8.15% p.a. for senior citizens. Regular customers can earn rates up to 7.75% p.a. for eligible tenures.
Bajaj Finance Fixed Deposits offer competitive interest rates of up to 8.15% p.a., with flexible tenures ranging from 12 to 60 months. You can also plan your investment using the FD calculator to estimate maturity value and interest earnings accurately. With Bajaj Finance FDs, you get fixed returns, flexible payout options, and a fully digital booking experience—making investing simple and transparent. Check FD rates.
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What is a treasury bill?
A Treasury Bill, or T-bill, is a short-term Government of India security. It does not pay periodic interest or coupons. Instead, T-bills are issued below their face value and redeemed at face value. The difference between the purchase price and face value represents the investor's return.
RBI currently identifies three standard T-bill tenures:
- 91 days
- 182 days
- 364 days
The minimum bid amount for T-bills is Rs. 10,000.
Additional bids are generally placed in multiples of Rs. 10,000. T-bills are Government securities and carry practically no risk of default. However, their market price can change before maturity if sold in the secondary market.
Key differences between Fixed Deposits & Treasury Bills
Avoid these mistakes while booking FD
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FDs and T-bills both support conservative investment strategies. However, their features and return structures differ considerably.
Parameter Fixed Deposits Treasury Bills Issuer Banks and eligible deposit-taking institutions Government of India Return structure Predetermined interest Discount to face value Common tenure 12 to 60 months for Bajaj Finance FD 91, 182 and 364 days Minimum amount Rs. 15,000 for Bajaj Finance FD Rs. 10,000 Interest payment Monthly, quarterly, half-yearly, annually or maturity No periodic interest Risk profile Depends on issuer and applicable safeguards Very low default risk Premature exit Subject to applicable FD conditions Can be sold in the secondary market Return certainty Rate is fixed for the selected FD Yield depends on purchase price With Bajaj Finance FDs, you get the reassurance of top-tier safety ratings (AAA/STABLE from CRISIL and ICRA) along with assured returns. Open FD. if you’re looking to grow money steadily over a longer duration, Bajaj Finance Fixed Deposits provide a reliable alternative. You can start investing with just Rs. 15,000.
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Types of fixed deposit
Bajaj Finance offers cumulative and non-cumulative FD options.
a. Cumulative fixed deposit
Interest is accumulated and paid with the principal at maturity. This structure can suit investors seeking a maturity payout.
b. Non-cumulative fixed deposit
Interest is paid at selected intervals instead of accumulating until maturity. Available payout frequencies can include monthly, quarterly, half-yearly, or annually.
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Types of treasury bills
Treasury Bills are commonly classified according to their maturity periods.
Treasury Bill Maturity Minimum bid 91-day T-bill 91 days Rs. 10,000 182-day T-bill 182 days Rs. 10,000 364-day T-bill 364 days Rs. 10,000 The minimum bid is Rs. 10,000, with further bids generally placed in Rs. 10,000 multiples.
Factors to consider when choosing between FDs and treasury bills
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- Investment horizon: T-bills suit short-term requirements, while FDs can cover longer periods.
- Risk profile: T-bills have sovereign backing, while FD risk depends on the issuer.
- Return structure: FDs provide a stated interest rate, while T-bill returns depend on purchase price.
- Liquidity needs: T-bills can be sold in the secondary market, while FD withdrawal follows applicable conditions.
- Investment amount: The minimum amount differs between the selected FD and T-bill.
- Tax treatment: Compare post-tax returns rather than headline rates alone.
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Conclusion
Treasury Bills and Fixed Deposits can both suit conservative investment requirements. However, they differ in tenure, return structure, liquidity, issuer, and taxation.
T-bills offer short-term exposure to Government securities with low default risk. FDs can provide a predetermined rate across a selected tenure. For investors seeking defined returns and flexible tenures, a Bajaj Finance FD can be considered. You can Check eligibility before investing.
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Calculate your expected investment returns with the help of our investment calculators
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Check out different FD Rates
Fixed Deposit variants
Get ROI up to
8.15% p.a.
Senior citizen
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
Age below 60 years
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
Minor
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
HUF
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
Sole proprietor
Starting with just Rs. 15,000
Locate to your nearest FD branch
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Frequently Asked Questions
Overview
What are factors to Consider When Choosing Between Treasury Bills and FDs?
Consider the investment period, liquidity requirements, return structure, issuer, and tax treatment. You should also compare the expected post-tax return with your financial objectives.
Are treasury bills riskier than fixed deposits?
T-bills carry very low default risk because they are Government of India securities. FD risk depends on the institution accepting the deposit and applicable protections.
Treasury bills vs fixed deposits: Which option gives higher returns?
Returns vary because T-bill yields depend on auction prices and market conditions. FD rates are predetermined for the selected tenure and customer category.
Can you invest in both treasury bills and FDs at the same time?
Yes, investors can hold both instruments when their features suit different financial requirements.
This can provide exposure to short-term Government securities and fixed-tenure deposits.
Who regulates the prices of treasury bills?
T-bill auctions and Government securities markets operate under the regulatory framework involving RBI and the Government of India. T-bill prices and yields are determined through the auction and secondary-market mechanisms.
Which is better, T-Bills or FDs?
The "better" option depends on your investment goals and risk tolerance.
- T-bills: Ideal for short-term, low-risk investments with high liquidity.
- FDs: Offer higher potential returns for medium- to long-term goals, but with slightly higher risk compared to T-Bills.
Is a Treasury Bill the same as a Fixed Deposit?
No, Treasury Bills and Fixed Deposits are distinct financial instruments.
- T-bills: Short-term debt securities issued by the government.
- FDs: Deposits made with banks or financial institutions for a fixed period, earning a fixed interest rate.
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