Bajaj Finance Fixed Deposit is paying more interest than banks in India. So is Bajaj Finance Fixed Deposit a safe investment? Why is it that banks are giving less interest than Bajaj Finance? Today we will try to find the answer to all these questions through this article.
India is a country where people like to invest money in Fixed deposits. Well, we cannot call Fixed Deposit an investment plan because Fixed Deposit is a savings plan. In Fixed Deposit, you get a fixed interest. But for a few years, banks have reduced the rate of interest on FD very low. 6 months ago today State Bank of India was giving 5% interest to its customers.
That is why people do not want to invest money in Fixed Deposits. That is why there has been a huge reduction in Fixed deposits in banks too. But now we can breathe a sigh of relief because most of the banks have increased the rate of Fixed deposits. If we talk about banks, right now IndusInd Bank is paying the highest interest on Fixed deposits to its customers. IndusInd Bank is a leading private sector bank in India. IndusInd Bank is giving around 7.50% interest on FD to its customers.
Apart from banks, you can also open a Fixed Deposit account with finance companies. In the finance companies, the highest interest is currently available on the FDs of Shriram Finance. Bajaj Finance is currently offering interest up to 7.75% but Shriram Finance is giving you 8.90% interest on Fixed Deposits. So if you do not want to invest in Mutual Funds and Stocks and are looking for a safe investment for yourself, then I think you can check out the Fixed Deposit plans of Shriram Finance and Bajaj Finance. And I know you will love these plans.
Is Bajaj Finance Fixed Deposit safe to invest in?
If we talk about the FD interest rate, then finance companies are giving you very good interest. But as you also know that when the return is high then the risk is also high. By the way, your Fixed Deposit is not safe even in banks. But banks provide you insurance on savings up to 5 lakhs. Even if the bank becomes bankrupt, you will get an amount of up to Rs 5 lakh. But investment in Finance companies does not get the facility of insurance. If a company is declared bankrupt, then it will be very difficult for you to get your money.
So we cannot call Bajaj Finance Fixed Deposit a 100% safe investment. But you know that Bajaj Finance is a good company and is earning good profits.
Bajaj Finance Fixed Deposit has got AAA/Stable (Migrated from ‘FAAA/Stable’) rating from CRISIL. And this rating is the highest rating in its category. So Bajaj Finance is a very safe investment. But as you also know that apart from government investment, the risk is high in all sectors. In such a situation, you should not invest all your money in one company. Some banks are also giving good interest, so you can also turn to Bank’s Fixed Deposit.
Along with this, you can also open a fixed deposit account in Shriram Finance. You will also get good returns in Shriram Finance. Shriram Finance has also been awarded AAA/Stable (Migrated from ‘FAAA/Stable’) by CRISIL. So yes Shriram Finance is also a safe investment.
Invest money in bonds
If you are just looking for safe ways to invest then I think you should invest in Government Bonds. In bonds, you will get more interest than FD. And government bonds are also 100% safe. If we talk about the most popular bond in government bonds, then it is a floating rate saving bond.
floating rate saving bond
The floating rate saving bonds are issued by RBI. You can buy it both online and offline. Because RBI issues these bonds, we can say that floating-rate saving bonds are 100% secure. In a floating-rate saving bond, you are given interest every 6 months at the rate of 7.15%. Your interest is credited to your bank account. The floating rate saving bond has a lock-in period of 7 years. And before 7 years you cannot redeem a floating rate saving bond. You cannot even sell these bonds. If there is any shortcoming in this bond, then it is that its maturity period is quite long. So if you want to invest money in the long term then I think floating-rate saving bonds are a good option for you.
By the way, Bajaj Finance also issues bonds, and corporate bonds offer higher interest rates than government bonds. But as I had said earlier that if the interest is high then the risk will also be high. If you are willing to take risks then yes you can invest in Bajaj Finance bonds as well.
Apart from this, you should also add more schemes to your investment. You invest in mutual funds, stocks, gold, and plans like ELSS. Yes, I know that there is a high risk in stocks, but you should choose a company that is included in the top 50 companies of India. As you can invest in some companies of Nifty 50.
If you hold stocks for the long term then you can earn manifold profits. In my opinion, if you invest in Bajaj Finance stocks along with Bajaj Finance Fixed Deposit then you can earn more profit. The stock of Bajaj Finance Ltd has given a return of around 308.11% in the last five years. Meaning if you had bought the shares of Bajaj Finance Ltd 5 years ago, then today the price of those shares would have been three times. Many people consider the stock market to be a gamble but it is not so at all. If you invest in penny stocks then yes it is a gamble. But if you invest in fundamentally strong companies which are leaders in their category, then you can earn manifold profits.