Often investors choose to invest in gold, which has been an investment option that cuts across the country’s class, caste and gender lines. People choose gold for its safety, but the growing popularity of fixed deposit has been slowly taking the sheen off the shiny metal.
Read along to know what makes Bajaj Finance FD a better investment avenue than gold.
- Earned interest
You invest to earn returns, but when it comes to gold, returns can be very volatile. Gold prices depend on its demand, supply and inflation. However, returns on fixed deposits are comparatively stable. When you invest in a corporate fixed deposit with a good rating, your principal is likely to remain safe. Plus, you continue to earn interest over a period of time.
Bajaj Finance Fixed Deposit offers attractive interest rates of up to 8.10% for new customers, which go up to 8.35% for senior citizens.
When investing in gold, you may need to set aside a larger sum of money, especially because of the rising price of the yellow metal. On the other hand, investing in Bajaj Finance Fixed Deposit enables you to receive returns on a periodic basis, or at maturity – as per your convenience.
Additionally, Systematic Deposit Plan by Bajaj Finance is a monthly savings plan through which customers can save small monthly deposits, in a disciplined manner.
Such an option is not available if you invest in yellow metal. Therefore, a fixed deposit can be a good investment for those looking to get steady income on the side.
- Loss or theft
Losing a precious metal, like gold, can be particularly disturbing, especially as the chances of recovery are very less. However, this is not the case with FDs. The issuer maintains details of all deposit holders. So, even if you lose your certificate, you can get another certificate from the issuer. Your investment remains unaffected and you continue to earn interest.
Additionally, it is best to exercise caution and invest with a reliable fixed deposit issuer like Bajaj Finance, which has the highest safety ratings of FAAA by CRISIL and MAAA by ICRA. These ratings ensure that there is no chance of delays or loss of capital.
- Cost of storage
You store gold in a bank locker to ensure it remains safe. The bank charges a certain amount of money every year, which necessitates the need to deduct the locker fees while calculating your returns on gold. This is not the case with fixed deposits, where you not just earn attractive FD interest rates, but also there is no storage cost involved.
When investing in FD, you receive a Fixed Deposit Receipt, which occupies minimum space. Some companies also issue a soft copy of your receipt, which can be stored in your computer.
Emergencies may warrant immediate action, which may require you to liquidate your investments. However, this can be difficult in case you invest in gold. However, with gold, you may or may not find a buyer immediately. Some jewellers may be willing, but they may not offer you the market price.
On the other hand, closing your fixed deposit investment is rather simple. You can pre-close your FD and take out your money any time. You can also choose not to withdraw your FD investment. Instead, you can choose to take a loan against your FD during an emergency. Bajaj Finance is one such lender that allows you to take a loan against your FD, provided the investment is over three months. They can offer you loan up to 75% of the principal amount. The loan interest rate is just 2% above your FD interest rate.
To sum up, gold can be a fickle investment. A gold investment depends on a variety of external factors. A fixed deposit, on the other hand, gives you a warm glow of stability. Not much can go wrong with them. So, invest easily with Bajaj Finance online FD, and benefit from the convenience of paperless investment processes and doorstep document collection.