How Does Fixed Deposit Scheme Give Better Returns than Post Office Scheme?

Fixed Deposit

It is easy to get swayed away from the myriad of options like equities, corporate bonds, liquid funds, etc. that are trending in the market. However, you should decide the kind of instruments you should be investing in depending upon your investment needs. If taking risks with your capital is not among your priorities, investing in fixed deposits would be a good decision. You may even invest in postal FDs that offer stability and a high rate of interest.

It is possible to earn better returns with investments like corporate fixed deposits. These fixed deposits are generally available with NBFCs. Choose a corporate FD scheme that is appropriate according to your investment goals and requirements. Also, investigate the company profile and ensure that your money is 100% safe. For instance, Bajaj Finance FD is the highest-paying corporate FD in India. Apart from that, it also has the highest ratings for providing safety to your investment. The high credit ratings given by CRISIL and ICRA explain why investing in this corporate FD will safeguard your returns. 

To determine the best FD plan, let’s compare postal FDs with Bajaj Finance FD. The following insights will clear your doubts and queries:


Postal FDs allow you to invest your savings for 5, 3, 2, or 1 year. On the contrary, Bajaj Finance offers a flexible tenor for investment. It means that your investment tenor can lie anywhere between 12 and 60 months. 

The convenience offered by the flexible tenor makes it an ideal investment tool for those who want to invest for both the long and short term simultaneously. It can be done by merging the flexibility of this FD scheme with its multi-deposit feature. 

As per this feature, you have the freedom to invest your capital in more than one fixed deposit at once. The tenor, FD type, and amount can be selected as per your investment requirements. With the help of the FD interest rate calculator India, predict the outcome i.e. returns from every FD seamlessly and hit your short-term and long-term financial targets with precision. 

Interest rate 

The highest interest rate of 6.7% is provided by postal FDs for the term of 5 years. Bajaj Finance FD multiplies your capital at an FD interest rate of 7.05% for the 5-year FD plan. The comparison of interest rates according to the tenor options is given below:

Post Office FDs Interest Rates Bajaj Finance FDs Interest rates 
1-year, 2-year, and 3 years postal FDs 5.5%12 to 23 months 5.90%
5 year postal FD 5.5%24 to 35 months 6.35%
36 to 60 months 7.05%

The difference between the post office interest rates and Bajaj Finance FD rates is evident from the above table. Therefore, your returns will be eventually higher if you lock your investments in Bajaj Finance FD even for a relatively lower tenor. 

Comparison in returns 

For comparing the returns offered by postal FDs and Bajaj Finance Fixed Deposit, let’s see an example. Suppose that you invest Rs. 2,00,000 in a postal FD for 3 years and choose Bajaj Finance FD for investing an equal amount for the same period. The below table will demonstrate the returns precisely:

FD Type Amount Rate of Interest Tenor Interest gains Maturity Amount 
Bajaj Finance FDRs. 2,00,0007.05%36 months Rs. 43,000Rs. 2,43,000
Postal FDRs. 2,00,0005.5%36 months Rs. 35,614Rs. 2,35,614

You can see here that Bajaj Finance FD is offering a higher maturity payout than postal FD. 

Online investment alternative

With Bajaj Finance FD, you get an online process for investing in FDs. The option of investing online via an FD form is available and with a CKYC number, you don’t have to upload or submit any documents physically. 

Also, senior citizens can get a 0.25% extra FD rate on choosing this investment scheme. Non-seniors can prefer the online mode for earning interest at a 0.10% higher FD rate.