Fixed deposit interest rates vs inflation: Are FDs still a good investment?

Fixed deposits have long been a preferred choice for Indian savers seeking safety, assured returns, and peace of mind. With fixed interest rates and guaranteed maturity payouts, FDs offer a solid financial foundation—especially for those who prefer risk-free options. But with inflation on the rise in recent years, many are wondering: Are FDs still worth it?

The short answer is yes—especially when you choose high-return options like the Bajaj Finance Fixed Deposit, which now offers interest rates of up to 7.95% p.a. for senior citizens and up to 7.40% p.a. for non-senior citizens. Here's how you can still beat inflation with the right FD strategy.

What is a Fixed Deposit and How Does It Work?

A fixed deposit (FD) allows you to invest a lump sum for a fixed tenure at a predetermined interest rate. Offered by banks and NBFCs like Bajaj Finance, it provides guaranteed returns—either monthly or at maturity.

Why investors trust FDs:

• Safety of capital
• Assured returns, unaffected by market fluctuations
• Flexible tenures from 12 to 60 months with Bajaj Finance FD
• Choice between monthly payouts or lump sum on maturity
• Easy online booking in minutes

Did you know? 

Bajaj Finance Fixed Deposit has the highest AAA ratings from CRISIL and ICRA, ensuring top-tier safety for your investment.

Inflation vs FD Returns – The Real Picture

Inflation refers to the rising cost of living—if inflation is at 6% and your FD earns just 5%, your actual purchasing power declines. That’s why it’s crucial to choose FDs that offer returns above the inflation rate.

With Bajaj Finance FD, you can earn:

• Up to 7.95% p.a. if you're a senior citizen
• Up to 7.40% p.a. for other investors

This puts your FD returns well above India’s current average inflation rate—helping you grow your wealth in real terms.

Use the FD Calculator to Know Your Real Returns

A simple way to plan better is by using the FD calculator monthly interest tool available on the Bajaj Finserv website and app. Just enter your investment amount, tenure, and select payout mode to view your estimated earnings.

Whether you're planning for retirement, saving for a goal, or seeking a steady income, this tool helps you make informed, data-driven decisions.

How to Beat Inflation with Bajaj Finance FD

Here are some strategies to maximise returns and outpace inflation:

1. Invest in High-Interest FDs

Bajaj Finance FD currently offers market-leading interest rates, including limited-period high-return options. Why settle for less?

2. Go for Cumulative Option

Choose cumulative FDs to reinvest interest and enjoy the power of compounding. It’s ideal if you don’t need regular payouts.

3. Senior Citizens – Make the Most of It

Senior investors (60+) earn up to 7.95% p.a. with Bajaj Finance FD—perfect for monthly income or secure wealth creation post-retirement.

Check FD Rates and plan your investment now!

Monitor Inflation, Reinvest Smartly

Inflation and interest rates are dynamic. Keep track of both and make timely decisions—break and reinvest FDs when the rates are high, and avoid long-term lock-ins during low-rate periods.

Should You Consider Other Options?

While FDs offer capital protection, here are a few complementary options if you're looking to diversify:

• Debt mutual funds – moderate risk, market-linked
• Government schemes – like PPF or SCSS
• Balanced funds – equity + debt exposure
• Inflation-indexed bonds – directly linked to inflation

Each of these carries different levels of risk and liquidity. Choose based on your financial goals and comfort with market movements.

Final Word: FDs Still Make Sense—When You Choose Wisely

Fixed deposits remain a reliable and secure way to save and grow money—especially when you invest with a trusted name like Bajaj Finance. With high interest rates of up to 7.95% p.a., strong credit ratings, and flexible options, Bajaj Finance Fixed Deposit helps you stay ahead of inflation without taking unnecessary risks.

Note to readers: This article is part of Mint’s paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.

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