Collecting your savings in a savings account is the most basic form of investment which is used by millions of people in India. The savings account plans offered by most banks and financial companies fall in the bracket of 4 – 6%. However, people prefer them because they are safe and you can withdraw your saved amount anytime by visiting the bank or through your debit card without paying any penalty charges.
That being said, savings schemes are not the best option when it comes to planning long term investments. Fixed deposits offer better interest rates and provide the same level of safety from the market risks. NBFCs like Bajaj Finance are offering lucrative FD schemes for everyone who wishes to earn more without taking too many risks.
What makes Bajaj Finance Fixed Deposit better than a savings account?
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Interest rates
The earnings from your investment depend on the interest rate that is offered to you while applying for a particular scheme or plan.
While the best of the saving schemes won’t give you an interest rate higher than 6%, Bajaj Finance FD offers interest rates up to 8.60% and senior citizens can enjoy interest rates up to 8.95% which are the Best FD rates in 2019.
This reflects directly on your earnings, and you can earn more with every passing month.
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Liquidity
Liquidity is the only factor which makes saving schemes an attractive option for most of the individuals. You can withdraw your savings anytime without submitting any form or completing any procedure.
However, when it comes to Bajaj Finance FDs, you can still withdraw your FD whenever such need arises. Also, you need to pay only a nominal fee as a penalty for that. Moreover, you need not even withdraw an FD since Bajaj Finance provides loan against FD without any collateral. Liquidating your FD or raising a loan against it can be done online via Experia- your online fixed deposit account.
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Prediction of earnings
You cannot estimate your real earnings in a savings account since you are withdrawing and depositing money on a random basis. However, when it comes to FDs, you are investing a fixed amount for a fixed duration of time, and therefore, you can easily predict your earnings.
Bajaj Finance provides tools like an online FD Interest rate calculator which you can use to predict your earnings in advance by selecting the principal amount and FD tenor. The calculator will automatically reflect the interest rates for that particular tenor, and you can easily calculate the final earnings.
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Flexibility and control
You are not able to control your earnings when you are investing in a savings account since you are using it for your daily and monthly expenses.
However, Bajaj Finance FDs offer better control over your investments as you can check your investments through the online account management tools. Also, you can earn periodically by opting for monthly, six-monthly, quarterly, or yearly interest payouts.
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Ease of application
For opening a savings account, you need to visit the nearest branch and submit the form along with the relevant set of documents. Also, it is a time-consuming process as you also might have to visit the bank again for fetching your debit card, passbook, or for completing other formalities.
With Bajaj Finance, you get the option of easy FD application through their website. Also, the documents and cheque will be collected from your place once your application is processed, and you will get your deposit certificate immediately. You also have an option to manage your FD account online from the comfort of your home via Experia- your online fixed deposit account.
These are some reasons which make Bajaj Finance Fixed Deposits better than a savings account. Investing in a Bajaj Finance FD is a wise decision as it offers high returns, and these investments are also rated for their safety and stability by reputed rating agencies like ICRA and CRISIL. Therefore, invest in a Bajaj Finance FD today and enjoy the best FD rates in 2019!