The year 2021 is quite tricky for the investors because the economy is slowly getting back to normalcy but it hasn’t recovered fully yet. Therefore, you can think of investing in money market instruments but investing a bulk of your savings in risk-free instruments like the deposit schemes offered by banks, NBFCs, and post office FD schemes would be a wiser decision.
A fixed deposit has always been a preferred avenue for investors who like to invest in large chunks. The considerable reduction in bank FD rates will not help your investments to grow at a good pace. Therefore, your plans such as fixed deposit double in 5 years will be a far-fetched dream as of now.
To counter this situation, you can invest in a corporate FD plan that offers a better return rate than bank FDs, or else you can deposit in post office term deposits to get higher returns. To compare which option is better among bank FDs, post office deposits, and corporate FDs, let’s take an example:
Suppose that you have gathered a corpus of Rs. 10,00,000 and want to invest it for 5 years. Let’s say you choose a corporate FD provided by Bajaj Finance as it is offering one of the highest FD rates in India currently. The below table shows the returns that each of the fixed deposit schemes can provide upon completion of their respective tenors:
| FD plan name | Principal amount | Investment period | Rate of Interest | Interest gains | Maturity Value |
| Bank FD | Rs. 10,00,000 | 5 years | 6% | Rs. 3,46,855 | Rs. 13,46,855 |
| Post Office Time Deposit | Rs. 10,00,000 | 5 years | 6.7% | Rs. 3,94,067 | Rs. 13,94,067 |
| Bajaj Finance FD | Rs. 10,00,000 | 5 years | 7.25% | Rs. 4,19,013 | Rs. 14,19,013 |
Bajaj Finance FD provides much better returns than bank FDs and post office time deposits. You can invest in this FD scheme because of the reasons given below as well:
Online loan
The present situation is such that you may need funds for a medical emergency for any other reason. There is no need to panic as Bajaj Finance FD will provide an online collateral-free loan of up to 75% of your FD value. This means that you neither have to break your deposits nor you have to find any other option for raising funds on an urgent basis.
Online investment process
Carrying a huge amount physically to invest in an FD might be quite a headache for you especially in the current situation. By considering this issue, Bajaj Finance has come up with an online process where you can take care of everything online right from form filling to documentation. You can even pay online via net banking or UPI and after booking an FD, you can also check your investment online via its online portal – Experia.
Your FDs will be booked at a 0.10% higher FD interest rate on choosing the online investment process.
Other lucrative options
You can choose to reinvest your returns automatically by selecting the auto-renewal option while filling the online FD form. Also, a 0.25% higher FD rate will be provided if your age is above 60. The FD tenor can be anything from 12 to 60 months as per your convenience. Upon that, your deposits are completely secured in the FD plans of Bajaj Finance as it has received FAAA/stable and MAAA/stable ratings from credit rating institutions like CRISIL and ICRA. All these benefits and options make it a convenient and highly attractive investment option in 2021.
How to invest in the most relevant question in 2021 as the market has not been stabilized completely yet. You can think of investing in stable instruments like fixed deposits, post office FDs, or bank FDs but to obtain sufficient returns at maturity, the offered interest rate will be crucial. Therefore, it would be a wiser idea to invest in a corporate FD like Bajaj Finance FD that is not only providing a high-interest rate but also incorporates a wide range of convenient options and tools, and features to earn better returns.
Investing in it is a good option for you as it is considered to be among the safest alternatives when it comes to FDs and this can be confirmed from the high credit ratings that credit rating institutions like ICRA and CRISIL have given to its FD plans.