Is Your Fixed Deposit Investment Safe

Ensure the safety of your Fixed Deposit investment with Bajaj Finance. Discover reliable financial solutions today!
4 mins
16 July 2024

It is always better to invest your surplus savings rather than leaving them idle. While several investment avenues are available in the market, fixed deposits are a popular investment choice because of lower risk and higher returns. In addition, Bajaj Finance Fixed Deposits offer one of the highest interest rates so that you can grow your savings efficiently.

However, before you consider investing in any fixed deposit, you may be concerned about how safe your fixed deposit is. To understand whether the FD investment in India is safe or not, read on.

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.65% p.a. by investing for 42 months via website and app.

Regulation by the RBI

If you have invested your money with a bank, it is more than likely safe. The Reserve Bank of India (RBI) has made deposit insurance compulsory for all banks. Your investment in a bank is insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, which covers your deposits up to Rs. 1 lakh for both principal and interest amount held in the same capacity and same right. So, even if the bank goes insolvent, your fd investment will be safe.

NBFCs and companies often offer a higher interest rate when compared to bank fixed deposits, which enables investors to multiply their savings quickly. However, before you invest in a company fixed deposit, it is best to check the credibility ratings beforehand. For example, if a company FD offers a lucrative interest rate but doesn’t have excellent credit ratings, it is best to avoid investing.

Investments above Rs. 1 lakh

Before investing in FDs, you need to know how safe Banks of India FD is. investments above Rs. 1 lakh in a single bank may not be entirely safe because the cap on deposit insurance is Rs. 1 lakh. So, even if you have FDs in multiple branches of the same bank, all your deposits are totalled and capped at Rs. 1 lakh for insurance purposes. However, there’s a way around this. If you open them at different banks, you can invest and get cover for more than Rs. 1 lakh on your FDs. In such cases, the deposit insurance applied for each bank will be separate.

On the other hand, it is always best to choose a company fixed deposit with high credit ratings so that you can be assured of guaranteed returns. Company FDs with high credibility ratings will ensure no delays in interest payments, and your investment amount remains safe.

Safest sector

You do not need to worry about fixed deposit security in India, banks fall under different categories like the private sector, public sector, co-operative banks and foreign banks. All these banks offer FDs, and all of them are covered by deposit insurance. Hence, whichever sector bank you opt for, your investment is equally secure.

Diversify your portfolio

It’s wise to diversify your investment portfolio, and an FD is an investment option that has been looked upon favourably for several generations. This is because of the stability and security FDs offer. Moreover, with competitive FD interest rates of up to 8.65% p.a., Bajaj Finance Fixed Deposit is a great option.

Reasons to Invest in Fixed Deposits

  • Safety: FDs are considered one of the safest investment options as they are typically backed by banks or renounced financial institutions.
  • Assured Returns: FDs offer fixed and guaranteed returns, providing predictability in your investments.
  • Steady Income: They provide a regular source of income through interest payouts, which can be especially useful for retirees.
  • Liquidity: While there is a lock-in period, FDs offer relatively high liquidity compared to other long-term investments.
  • Diversification: FDs can be a part of a diversified investment portfolio to balance risk and returns.

Additionally, FDs have several other benefits in addition to the safety of investment and fixed returns. You can also avail of loans against them during a financial emergency. Invest in a Bajaj Finance Fixed Deposit to grow your savings quickly and reap the benefits of high-interest rates with flexibility.

You can easily calculate your returns by using the FD calculator.

Frequently Asked Questions

Is FD safe from hackers?

Yes, fixed deposits are safe from hackers as they are not directly accessible through online transactions.

Can you lose money in a fixed deposit?

In most cases, fixed deposits are considered safe, but sill there is very little risk of losing your money.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.