<div>Short-term or Long-term FD: Which FD is best for you?</div>
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Short-term or Long-term FD: Which FD is best for you?

  • Highlights

  • Differences between short-term &long-term deposits

  • Benefits & features of short-term &long-term deposits

  • Attractive interest rates for guaranteed growth of FDs

When it comes to choosing between long-term FDs and short-term FDs, it is important to delve deep into their basic differences. While long-term fixed deposits are built along the same lines as regular fixed deposits, they greater liquidity and higher returns.

On the other hand, short-term fixed deposits involve investing a sum of money in an account and letting it grow over a short tenor. These deposits are ideal for raising small amounts of cash for shorter tenor.

Knowing more about features and benefits of both these financial instruments can help you determine the best fixed deposits for you.

Benefits and features of Short term deposits

• Like any other FD, it involves locking a sum of money into an account for a specific period, where it gains interest.
• This investment option, however, features a shorter lock-in period.

• The tenor for this deposit can range from 7days to 2 years.
• The minimum amount for deposit varies; most institutions have a minimum amount of Rs.10,000.
• It is an extremely safe form of investment and does not get influenced by market forces.
• The interest rates are stable and attractive—usually double the interest rates for savings accounts.

• It is also important to note that the returns from these deposits can be taxable.
• It is ideal for short term purposes like acquisition of a new vehicle or purchasing a gift for a family member.
• There is no liquidity without a penalty, so it is better not to withdraw this amount until the end of the tenor.

If you’re looking for flexible tenor, choose Bajaj Finance Fixed deposits, for high interest rates and payouts of your choice.

How to Invest in Bajaj Finance Fixed Deposit ?

Benefits and features of long-term deposits

• This deposit is extremely easy to start. The overall application process is short, transparent, and easy to go follow.
• These deposits feature a flexible tenor. Various institutions offer you different maturity terms, depending on your needs.
• Financiers like Bajaj Finance offer an added loan against FD on applying for these deposits.
• These are the deposits that feature auto renewal. Auto renewal means that the FD is immediately renewed without going through any additional formalities.
• As is true with other deposits, these deposits let you freely choose the amount that you seek to invest.
• These deposits have relaxed rules for premature withdrawals. In these FDs you can withdraw your FD, without having to pay any penalty.
• With such good liquidity, these FDs can be used as a mode of cash anytime the need arises.
• These FDs can be used for a range of purposes like purchasing a new vehicle or buying your loved one a gift.
• They offer investors attractive interest rates that guarantee better growth and maturity of the FD over the length of the tenor.
• Either the tax on the interest earnings of these FD are deducted at source or need to be declared when filing your IT.
• If you seek to withdraw your FD, you just need to inform the bank or financial company in advance.
You could also calculate your returns before investing with an FD calculator, so you can take the right decision. You can choose any one based on your requirements.

Additional Read: 6 Common Mistakes To Avoid, While Investing In FDs

Bajaj Finance is now offering high rate of interest up to 9.10%*

*For senior citizens, on a cumulative scheme tenor of 36-60 months
 

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