An investment portfolio should be a good mix of low-risk and medium-risk investments. Low-risk investments offer stability and lower but assured returns, while high-risk investments offer higher returns but carry higher risk.
Investors can choose investment options that suit their needs depending on their risk appetite.
Fixed deposit and real estate property investments have been among the most popular investments. However, they are both very different and cater to different requirements of investors.
Whether you’re planning a short-term or long-term investment, these considerations can help you choose between fixed deposit and real estate.
Fixed Deposits
Fixed deposits are one of the most trusted investment options in India. You deposit a lump sum for a fixed tenure and earn interest at a predetermined rate. The biggest advantage of FDs is capital protection with assured growth, making them ideal for risk-averse investors.
With a Bajaj Finance FD, you can earn returns up to 7.30% p.a. with deposits of as low as Rs. 15,000. Along with that, you get the assurance of AAA/Stable safety ratings by CRISIL AAA and ICRA. Book FD.
Taxability of FDs
Interest earned on FDs is taxable under the Income Tax Act, 1961, and falls under “income from other sources.” This means your FD interest is added to your total income and taxed as per your slab rate.
However, even with taxation, FDs remain attractive for those prioritising stability. You can use an FD interest calculator to check your maturity amount after tax deductions and plan better.
Real estate as an investment option
Real estate investments, such as buying property, can offer capital appreciation and rental income. However, they come with challenges—high initial costs, lack of liquidity, and market-linked price fluctuations. Selling property is also time-consuming and may not always guarantee profits.
Instead of locking up lakhs or crores in real estate, you can start a Bajaj Finance FD with just Rs. 15,000, ensuring accessibility for all income groups.
Guaranteed returns
Property prices don’t always rise. In fact, markets often stagnate or correct, leaving investors disappointed. In contrast, an FD is insulated from market risks and guarantees fixed growth over your chosen tenure
Affordability and profit
Real estate often requires loans running into lakhs, with long-term EMIs. For example, a 1 BHK in Mumbai may cost `1.8–2 crore, demanding huge monthly outflows. FDs, on the other hand, are far more affordable and flexible—you don’t need to stretch your finances to invest.
Additional investment expenses
Beyond the property price, real estate investments involve stamp duty, registration fees, maintenance, and legal costs. These extra expenses can eat into your returns. FDs, however, have no hidden charges, and the only thing you need to consider is the tenor and amount you wish to invest.
With Bajaj Finance, the FD application is 100% online, making it simple and cost-effective. Book online.
Process involved
Real estate investment requires research, property valuation, legal checks, and documentation—a lengthy and stressful process. In comparison, investing in an FD is quick and paperless.
Transparency
The real estate market often suffers from information asymmetry. Buyers may not have complete visibility of property titles or market trends. FDs, however, are fully transparent—you know the rate of return, tenor, and maturity amount upfront.
Conclusion
Both FDs and real estate have their place in an investment portfolio, but if you’re looking for affordability, liquidity, safety, and guaranteed growth, fixed deposits clearly stand out. With Bajaj Finance Fixed Deposit, you not only earn attractive interest rates of up to 7.30% p.a. but also enjoy flexible tenors, a minimum deposit starting from just Rs. 15,000, and the convenience of a quick, online process.
Start small, grow steadily, and keep your investments stress-free with an FD. Book now!
Can I invest small amounts in an FD?
Yes. You can open a Bajaj Finance FD with just Rs. 15,000, making it highly accessible compared to big-ticket investments like real estate.
