Our Experience with High-Interest FDs: 5 Years Later
We’ve put lakhs into Bajaj and Shriram FDs for over 5 years. Here is the reality of our experience—the process, the returns, and exactly what would make us walk away.
⚠️ Disclaimer: I am not a financial advisor or investment professional. This is purely our personal experience and should not be considered financial advice. Please consult a certified financial advisor before making any investment decisions.
Our FD Strategy
Why do we still invest in FDs in 2026? It gives us peace of mind and a hedge against market volatility that we don’t find in other products.
Haven’t you heard of Debt Funds? Yes, we have. In fact, we’ve invested a significant sum in them too. Currently, our allocation is roughly 1:1 between FDs and Debt Funds. Apart from these, we also hold Pension Schemes, Sovereign Gold Bonds (SGBs), and Invoice Discounting.
Which FDs do we hold? We divide our FDs into two baskets:
- Ultra-Safe / Low Yield: Banks like SBI and HDFC.
- High Interest / Managed Risk: NBFCs like Bajaj Finserv and Shriram Finance.
Our allocation between “Big Banks” and “High-Interest NBFCs” is also 1:1. This keeps things simple and lets us adjust based on our immediate financial needs.
The Reality Check: Returns & Process
What returns are we actually getting (Feb 2026)? We typically choose 2–3 year tenures. Currently, SBI and HDFC are offering around 6.4%. In contrast, Shriram is giving us approximately 7.6%. That is nearly 18% extra interest compared to the big banks.
Have we faced any delays or serious issues in 5 years? Absolutely not. All the repayments and principals have come back on time. Zero issues whatsoever. This track record is a big reason we continue to invest.
Is the process difficult? Not at all. When we started, we were skeptical, so we requested a home visit. A representative called the same day and visited within 48 hours. They were professional, answered our doubts at length, and didn’t push us. We started small to build trust.
What happens at maturity? About 7–15 days before an FD matures, the Relationship Manager calls to ask if we want to renew or withdraw. There is no “trap” or sweet-talk to prevent us from taking our money out. We have withdrawn multiple FDs at maturity with zero hassle. This transparency is the single biggest reason we keep coming back to them for more investments.
Note on Taxation: Like regular bank FDs, these returns are taxable as per your income slab, and TDS is deducted. We factor this into our net return calculations.
FDs vs. Debt Funds
Why not just stick to Debt Funds if returns are similar? Debt Funds have clear advantages in liquidity and taxation (especially for long-term compounding), but the “peace of mind” is higher with FDs. In India, there is still ₹220 lakh crore in FDs compared to ₹15 lakh crore in Debt Funds. That 14:1 ratio shows we aren’t the only ones who value that stability.
Why not use “Stable Money” or other FD apps? On paper, they are better. They offer small bank FDs with high rates and DICGC insurance (up to ₹5 lakh). However, they are app-only. While I’m comfortable with tech, my parents struggled with the app. Shriram and Bajaj win here because of their physical presence. For many, a local branch or a visiting RM is worth more than a digital certificate.
The Risks: When Would We STOP?
FDs aren’t “cool,” but they work for capital protection. However, we aren’t blind to the risks. We would stop investing if:
1. Credit Rating Downgrade: Bajaj is currently AAA, and Shriram is AA+ (recently put on ‘Positive Watch’ due to the massive ₹40,000 cr investment from Japan’s MUFG Bank). If these ratings drop, we’re out.
2. The Spread Shrinks: If the difference between SBI and Shriram drops below 10% (e.g., if Shriram only offers 0.5% more than SBI), the extra risk isn’t worth the reward. For example, currently Bajaj offers 6.9%, which is around 7-8% more than SBI. So we are not renewing our FDs there.
3. Inflation: FDs rarely beat inflation significantly. They are a tool for protection, not aggressive wealth creation.
My Advice for First-Timers
Start Small: Test the water with ₹10-50K for a year. See how comfortable you are with it.
Check the Spread: Ensure you are getting at least 15-20% more interest than your savings account or base bank FD.
Laddering: If you want to maximise your efficiency with FDs, use this methodology
FDs aren’t cook, but they work for capital protection. Start small, test your comfort level, then scale. Questions? Drop them below.
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