As one of the safest investment instruments, Fixed Deposit (FD) has always been our go-to option to set aside a steady sum of savings that may come handy in the future. It comes as no surprise that it has come back under the spotlight, in the current bleak economic climate riddled with stormy speculation, swinging stock indices and rising uncertainty. Whether you’re self-employed or salaried, fixed deposit enables you to earmark your savings down to the last penny, thereby helping you safeguard your hard-earned corpus during these unprecedented times.
You can invest in a Fixed Deposit offered by banks, NBFCs or post offices, as per your requirements. For those looking for a balance of steady returns and safety, consider investing in Fixed Deposits from reputed NBFCs like Bajaj Finance. Here’s a quick look at how investing in these instruments can help in enriching your finances.
Guaranteed returns on investment
The inherent risks in equity investments can give sleepless nights to traders with portfolios that are overexposed to the stock market, who’re fretting about swinging stock indices. A prudent choice to balance out the risks during these times, is to invest a portion of your savings in a Fixed Deposit. On choosing to invest in a Fixed Deposit for a longer tenure, you can build a sizeable corpus that can be used to fund your regular expenses. As the interest compounds year after year, your rewards in store keep growing.
Bajaj Finance offers attractive FD interest rates of up to 7.35%, which can help you accumulate a corpus for your retirement, or to finance wedding or education expenses of your loved ones.
Consider the following table to understand your earnings when you invest for 5 years and opt for payouts at maturity only.
Thus, if you look at the above table, you can see that investing in a Bajaj Finance online FD can be an advantageous option. In fact you earn 0.10% more interest rate on your deposit, which enables you to grow your savings furthermore.
Ease of investment to grow your savings
By investing in a Bajaj Finance Fixed Deposit, you can reap the benefits of convenient facilities, which help you customise your investment as per your requirements. For example, those looking for a steady stream of funds to fund their regular needs, can choose the option to get periodic payouts. And those looking to grow their savings can choose to get interest at maturity.
Bajaj Finance also offers several other facilities, some of which have been detailed below:
· Online investment – You can now benefit from a completely paperless process by investing in a Bajaj Finance online FD, which can also help individuals below 60 years of age, earn 0.10% higher returns as compared to those who invest offline. With the convenience of investing from the comfort of home, you can also gain more returns.
· Loan against FD – Bajaj Finance Fixed Deposit can also work as a great option for emergency funds, as you can withdraw prematurely and also take a Loan against FD to fund urgent expenses.
· Monthly savings plan – Bajaj Finance also launched Systematic Deposit Plan that can help regular savers grow their corpus by saving on a monthly basis. With an amount of just Rs. 5000, you can grow your savings easily in a disciplined manner.
· FD interest calculator – With Bajaj Finance FD interest calculator, you can easily determine your returns beforehand and also know your maturity amount and maturity date. This makes for a great planning tool, which helps you grow your savings easily.
Additionally, Bajaj Finance offers flexible tenures and facilities for doorstep document collection, multi-deposit facility and easy deposits for NRIs with an NRO account.
Safety of deposit
Against the backdrop of increasing market volatilities, falling interest rates and higher risk of capital depreciation in the stock market, the focus on safety of deposit has become a greater concern. In comparison with the inherent risks associated with market-linked instruments, FD has no risk associated with it. The interest rate on your deposit is fixed from the start, and you can lock in to prevailing high FD rates before they fall. Additionally, the returns on your deposit are unaffected by market fluctuations.
However, if the recent turmoil in the finance industry is making you fret about the safety of your deposit, it is recommended to choose safe instruments accredited with high safety ratings. You can choose to invest in a safe option like Bajaj Finance Fixed Deposit that bears the highest ratings of FAAA by CRISIL and MAAA by ICRA, which indicates the highest safety of your deposit.
Instead of basing your choice of investment instruments merely on the interest rate, do take into consideration the other benefits that an instrument offers. As is the case with fixed deposits, you’ll find that in addition to a good interest rate, a plethora of other benefits make this a must-have element in your investment mix.