How to Select the Best Fixed Deposit in 2021

In 2021, you should focus on various aspects before choosing an instrument to grow your savings. This is because the financial sector is going through a tough phase due to the ailing economy, growing inflation, and market volatility. While fixed deposits help you to get fixed growth along with stability, they might not be favorable for churning huge returns especially in today’s context where the bank FD rates have fallen significantly. However, there are some fixed deposits instruments like company FDs that still offer high returns. Before investing in any of the FD instruments, you must evaluate these factors:

Get stability along with high returns

As an investor, your prime focus should be on finding investment options that provide stable returns despite the ongoing market crisis. Though FDs offer stability, you might also look for higher interest gains. Bajaj Finance FD offers both as it provides an FD interest rate of up to 6.75% and is also credited for being a stable investment option by credit rating agencies such as CRISIL and ICRA. To compare Bajaj Finance Fixed Deposit returns with returns offered by bank FDs, let’s look at the below example:

Suppose you invest Rs. 20,00,000 in a bank FD and deposit an equal amount in Bajaj Finance FD. The comparison between bank FD and Bajaj Finance FD returns is given below:

Fixed Deposit Plan	Investment Amount	Tenor	Interest Rate	Interest	Maturity Amount	Growth in investment (%)
Bank FD	Rs. 20,00,000	5 years	5.25%	Rs. 5,95,916	Rs. 25,95,916	29.75%
Bajaj Finance FD	Rs. 20,00,000	5 years	6.75%	Rs. 7,72,486	Rs. 27,72,486	38.62%

You can see that the difference in interest gains and maturity amount is high enough to make a significant difference in your earnings. Invest in Bajaj Finance FD via an online FD form and get a 0.10% higher FD rate today!

Flexibility

An FD scheme that offers greater flexibility when it comes to choosing an investment tenor and other options should be given a high priority when it comes to selecting the best-fixed deposit in 2021. While bank FDs will allow you to choose a tenor as per your investment plans, they might not provide the kind of convenience that Bajaj Finance FD offers with its flexible FD tenor. With Bajaj Finance FD, the lock-in period can be set flexibly between 1 and 5 years.

Moreover, you can invest in multiple FDs simultaneously and the tenor, investment amount, and type of FD can vary for each deposit. You can get this flexibility by opting for the multi-deposit feature that comes along with this FD scheme. Once you invest in multiple FDs, you will get better liquidity options that may come useful during a financial or medical emergency.

Premature withdrawals

While bank FDs and term deposit plans offered by post office schemes allow premature withdrawals, they also impose a penalty for doing so. As a result, much of your interest gains get wiped away. However, you may not go through this after investing in Bajaj Finance FD as it charges a nominal penalty and allows you to withdraw your deposits just after the completion of 3 months from the investment date.

You can even apply for a collateral-free loan against FDs if you deposit your savings in Bajaj Finance Fixed Deposit. As a result, your FDs will provide you with much-needed financial support during a crisis.

Before going through the multiple investment options that are available in the market, you should also learn about their pros and cons. While investing in FD is considered to be relatively safe, you must also focus on earning high returns. Earning high returns is possible if you invest in a safe and high-paying company FD such as Bajaj Finance FD. The FD interest rates of up to 6.75%, flexible tenor ranging from 12 to 60 months, and ease of investment make it one of the better FD alternatives in 2021. Features like the multi-deposit facility and loans against FDs enable you to use your deposits conveniently to deal with emergencies.