Updated on: Wednesday, August 25, 2021, 10:27 AM IST

3 reasons to secure your child’s future with a Bajaj Finance FD


As a parent, building a corpus to secure your child’s ambitions and future is sure to be amongst your top financial concerns. Raising a child in India can demand finances to the tune of Rs.1-2 crore, as per expert insights, and this is not a small amount by any standard. Expenditures related to housing, education and healthcare, especially, are surging in India, and require sound financial planning. You may also want to secure an amount for your child’s wedding and save more to fulfil your dreams of overseas schooling.

Given the mounting costs of each of these facets, it makes sense to begin saving early and investing wisely, so that your money works for you and grows over time. The Bajaj Finance Fixed Deposit can make for a valuable addition to your investment portfolio as it offers generous returns coupled with a high level of safety. Here is more on how you can use the Bajaj Finance FD to secure your child’s future.

Earn safely and securely for your child’s future

Bajaj Finance offers attractive FD interest rates, running up to 6.75%. Regular citizens who invest offline can get a rate of up to 6.50%, while those investing online get a rate hike of 0.10%, and thus, an FD rate of up to 6.60%. As a senior citizen, however, you can grow your finances at a rate of up to 6.75% regardless of how you invest.

While obtaining generous returns you also benefit from safety as this FD carries ICRA’s MAAA rating and CRISIL’s FAAA rating. These speak to stability and a default-free investing experience, making this investment absolutely reliable. Given the nature of this FD, you can safely use it alongside other more aggressive instruments and build a corpus for your child strategically.

Pick a tenor as per the upcoming goals related to your child

You can invest in a Bajaj Finance FD over a flexible tenor ranging between 12 and 60 months. This facility helps you align the payout to your child’s goals. For instance, if you need liquidity for higher education fees 5 years from now, you can set the tenor to 60 months. When selecting a tenor remember that it is always advantageous to invest over a long timeframe. With Bajaj Finance, the interest rates you get peak when the tenor is 36 months or more.

Consider this table* to see how your wealth grows over tenors spanning 1 to 5 years.

*The above figures were generated with the FD calculator and are for a regular citizen investing online and opting for payouts at maturity only.

These results help you see the earning potential of this FD to meet short-term and medium-terms goals. To get even more benefits, simply reinvest your corpus. You can do this while initiating your investment and filling up the renewal form.

Make use of laddering to set up a steady income stream for your child’s needs

Instead of investing the entire amount of savings in one FD, you can create an investment loop by investing the amount in FDs of varying tenors. For instance, the investment of Rs.20 lakh can be split into 5 investments of Rs.4 lakh each. The five FDs can have tenors of 1, 2, 3, 4, and 5 years, and this way you have an FD maturing every year.

The advantages of laddering are many and include the following.

  1. You have ample funds for annual goals, such as healthcare and education

  2. You earn at prevailing FD interest rates, and so can benefit from rate hikes

  3. You avoid having to break your FD, and thus avoid premature withdrawal fees

    With strategic planning, you can raise funds for your child’s future with ease through investments. Bajaj Finance allows you to invest online through a lump sum or to set up a Systematic Deposit Plan wherein you invest monthly through small contributions. Make a smart choice with the Bajaj Finance online FD and lay a strong foundation for your child’s future.


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Published on: Wednesday, August 25, 2021, 10:27 AM IST