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Bajaj Finance Fixed Deposit vs. Post office Fixed Deposit

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To enhance the credit flow in the economy, the RBI has cut down the repo rate by several basis points this year. Therefore, banks reduced the interest rates of their fixed income offerings. As a result, bank FD rates collapsed quite a bit. 

However, you still have the option of investing in post office FDs or corporate FDs as they both are offering higher returns. Among the corporate FD providers, the Bajaj Finance FD offers one of the highest FD rates currently. It is also a safer option as it has received impressive credit ratings for being a stable investment option. If you are confused about whether to open a post office account or Bajaj Finance FD account for investing your savings, then you check the comparison given below:

Interest rates 

The maximum interest rate offered by POTD (Post Office Time Deposits) is 6.7% whereas Bajaj Finance offers an FD interest rate of up to 6.85%. Also, it offers a higher interest rate for FDs of shorter tenors than POTD. 

You can use the FD calculator and POTD calculator to calculate the returns of both these fixed deposit plans. 


Both post office FDs and Bajaj Finance FD provide a flexible tenor. You can pick a lock-in period from 1, 2, 3, and 5 years if you wish to invest in post office FDs whereas the latter instrument allows you to pick an FD tenor from 12 to 60 months as per your convenience. It means that you can pick any number of months as tenor for locking-in your deposits. 

With Bajaj Finance, you can even invest in multiple fixed deposit plans and set different tenors for each deposit. Also, you can invest in multiple FDs simultaneously by submitting a single cheque. 

Easy access 

Post Office FDs do not come with many online and user-friendly features. However, with Bajaj Finance, you get an online FD form and even your documents can be verified online. Moreover, you also can track your investments online by using its customer portal named Experia. 

Also, you will be eligible for 0.10% additional FD rate if you select the online investment option. 

Senior citizen FD rates 

You will not find higher fixed deposit interest rates for senior citizens in post office schemes but Bajaj Finance offers 0.25% excess FD rate to senior citizens. 

The SCSS (Senior Citizen Savings Scheme) comes with a higher FD rate but it lacks the flexibility of tenor and its withdrawal policies are also not as convenient as the Senior Citizen FD Scheme which is provided by Bajaj Finance. 

The option of selecting monthly, quarterly, six-monthly, and yearly interest payouts make it easier for the senior citizens to fulfill their regular fund requirements. 

Periodic interest payouts 

Post Office Time Deposits only provide the option of annual interest payout. However, you can invest in Bajaj Finance's non-cumulative FDs as it provides monthly, quarterly, six-monthly, and yearly interest payouts. 

Withdrawal options
You can withdraw your deposits from post office FD (POTD) only after the completion of the initial 6 months from the date of deposit. Also, if you withdraw your deposits within the first year then your deposits will earn interest as per the post office savings account rates.

Bajaj Finance FD allows you to withdraw your deposits prematurely and charges a nominal penalty for it. You need not withdraw your FDs early as a loan against the FD facility enables you to apply for a loan up to 75% of the FD value. This amount can be used to fulfill your emergency needs. 


Post Office FDs are safe as they are government-sponsored schemes. Your investments are safe in a Bajaj Finance FD as well as it is rated highly for securing the money of the investors.

However, if you compare them based on all the above-mentioned features, then Bajaj Finance FD certainly seems to be a more flexible and convenient investment option. 


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