Invest in an FD. Get more than RD

Fixed deposits (FD) and Recurring deposits (RD) are favourable investment tools financial institutions offer. It is because both the instruments are safe, fixed income and low-risk.

OPEN FD
4 mins
14 Oct 2022

It is a well-acknowledged fact that idle money is a killer of savings because it does not inherently appreciate and does not beat inflation. It is why investing your savings becomes a crucial step in pursuit of growing wealth. However, choosing the perfect option can be challenging.

Fixed Deposits (FD) and Recurring Deposits (RD) are favourable investment tools financial institutions offer. It is because both the instruments are safe, fixed income and low-risk. But the FD scores better when it comes to earnings with another set of other benefits. Let us look at both investment plans to understand the differences better.

All about the Fixed Deposit (FD)

Generating wealth is a steady process that requires regular saving and investing. The fixed deposit is an all-time favourite investment option for Indian investors. The FD is suitable for all investors, especially because it is a safe tool. Bank FD generally offer lower interest rates as compared to company FD. Company FD like Bajaj Finance offer both safety and attractive FD interest rates.
Here is why the Bajaj Finance Fixed Deposit is a good option.

  • Certainty of returns
    The Bajaj Finance Fixed Deposit guarantees the highest deposit safety. It has been credited with the highest [ICRA]AAA(Stable) and CRISIL AAA/STABLE ratings by India's leading credit rating agencies.
  • Impressive returns
    Bajaj Finance FD offers fixed deposit interest rates up to 8.60% p.a. making it one of the highest interest rates any financial institution provides.

FD rates for customers below 60 years

Fixed Deposit Annualized rate of interest for non-senior citizens valid for deposit up to Rs. 5 crore (w.e.f May 10, 2023)
*special interest rates are offered on tenure of 15, 18, 22, 33, and 44 months.

Non-Senior Citizen – Special Period
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
15* 7.45% 7.21% 7.25% 7.32% 7.45%
18* 7.40% 7.16% 7.20% 7.27% 7.40%
22* 7.50% 7.25% 7.30% 7.36% 7.50%
30* 7.45% 7.21% 7.25% 7.32% 7.45%
33* 7.75% 7.49% 7.53% 7.61% 7.75%
44* 8.35% 8.05% 8.10% 8.18% 8.35%

Non-Senior Citizen – Regular Period
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
12 - 14 7.40% 7.16% 7.20% 7.27% 7.40%
>15-23 7.50% 7.25% 7.30% 7.36% 7.50%
24 7.55% 7.30% 7.35% 7.41% 7.55%
25-35 7.35% 7.11% 7.16% 7.22% 7.35%
36 - 60 8.05% 7.77% 7.82% 7.89% 8.05%

FD rates for customers above 60 years

Fixed Deposit Annualized rate of interest for senior citizens valid for deposit up to Rs. 5 crore (w.e.f May 10, 2023)
*special interest rates are offered on tenure of 15, 18, 22, 30, 33, and 44 months.

Senior Citizen – Special Period
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
15* 7.70% 7.44% 7.49% 7.56% 7.70%
18* 7.65% 7.39% 7.44% 7.51% 7.65%
22* 7.75% 7.49% 7.53% 7.61% 7.75%
30* 7.70% 7.44% 7.49% 7.56% 7.70%
33* 8.00% 7.72% 7.77% 7.85% 8.00%
44* 8.60% 8.28% 8.34% 8.42% 8.60%

Senior Citizen – Regular Period
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
12 - 14 7.65% 7.39% 7.44% 7.51% 7.65%
>15-23 7.75% 7.49% 7.53% 7.61% 7.75%
24 7.80% 7.53% 7.58% 7.65% 7.80%
25 - 35 7.60% 7.35% 7.39% 7.46% 7.60%
36 - 60 8.30% 8.00% 8.05% 8.13% 8.30%

All about the Recurring Deposit (RD)
Various financial institutes in India offer the facility of a recurring deposit (RD) account. The RD is a very reliable investment tool ensuring the safety of invested money. One can make periodic deposits and earn sizeable returns on the investment at maturity. You can start an RD with an investment of just Rs. 500. This savings plan is ideal for risk-averse investors. Returns generally vary between 5% to 8% p.a.
Here are some of the highlights of the Recurring Deposit (RD)

  • Guaranteed returns
    This savings instrument is not market-linked; it is a fixed-income instrument. Recurring deposits give assured returns to investors.
  • Fixed interest rate
    The RD interest rates are locked-in at the time of booking the RD, and it remains the same throughout the chosen tenure. Making it easy to calculate returns at maturity.

After going through this information, you can now evaluate your options and choose an investment plan that suits you best. However, as you can see, the returns provided by company FD like Bajaj Finance Fixed Deposit can get you more earnings than the recurring deposit.

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