Fixed deposit plans are offered by banks, finance firms, and Post Office of India. Post Office Saving Schemes includes NSC (National Savings Certificate), Time deposits, PPF (Public Provident Fund), etc. A couple of schemes of post office are more tax efficient than FDs and they even offer better interest rates than bank FDs.

However, Bajaj Finance, a corporate FD offers a high FD interest rate along with flexible investment options and other useful features. Therefore, let’s compare it with Post Office Saving Schemes to find the better option between them:

Interest rate

The interest rate of an instrument is the deciding factor for many as it has a direct impact on your returns. POTD offers an interest rate ranging from 5.5 to 6.7% depending upon its tenor and the 5-year NSC (National Savings Certificate) provides an interest rate of 6.8% currently.

The POMIS (Post Office Monthly Income Scheme) offers an interest rate of up to 6.6% whereas the post office FD interest rate of other Post Office Schemes is also more or less in the same range.

On the other hand, Bajaj Finance FD comes with an interest rate of up to 6.85% that is one of the highest FD rates in the market.

Ease of investment & withdrawal norms

The investment method and withdrawal norms determine whether an instrument is actually worthwhile or not. For example, only one account can be opened in the name of one girl child in Sukanya Samriddhi Yojana and the deposited amount matures only once the girl turns 21.

The Senior Citizen Saving Scheme offers a high interest rate but it does not allow you to invest more than 15 lakhs whereas the PPF (Public Provident Fund) has a lock-in period of 15 years.

Bajaj Finance FD enables you to choose a flexible tenor ranging from 12 to 60 months. An online FD form can be used to open an FD account and you will even get a 0.10% additional FD rate on choosing the online investment option. On the contrary, you will need to visit the branch office to open a Post Office Saving Scheme and therefore it is less convenient.

Moreover, you can withdraw your deposit after completion of the minimum investment period of 3 months or else, you can apply for a loan against FD without submitting any collateral to fulfil your sudden financial needs.

Safety of deposits

Since the Post Office Saving Schemes are backed by the Government, they are considered to be safe and stable. Bajaj Finance FD has received the highest ratings for safety and stability by credit rating organizations like CRISIL and ICRA. Therefore, both these instruments are risk-free when it comes to the safety of your deposited amount.

Bajaj Finance FD provides some extra features like the multi-deposit facility that allows you to invest in multiple FDs simultaneously. Also, a 0.25% additional interest rate is provided to the senior citizens. These features make it one of the best and highest paying FD instruments in the market.

While investing money, it is better to have several options in hand as it enables you to check which one of them is better in terms of investment method, tenor flexibility, liquidity, interest rates, etc. When it comes to a fixed deposit, you might naturally think of bank FDs but other options such as Post Office FDs, company FDs, etc. also need to be checked since the bank FD rates are quite low. Bajaj Finance FD not only provides a higher interest rate than most other FDs but also provides ease of investment, the safety of your deposits, and additional options like FD calculator, online tracking of investments, etc. to assist your financial plans. This makes it one of the best FD instruments in the market.

Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.