You can never forecast a future financial emergency, nor can you perceive a trying circumstance beforehand. Having a substantial safe and secure amount at your disposalgreatly helps during such unforeseen situations. Market uncertaintiesand strained economies at large have shed light on the need to have a contingency fund in place. There are multiple investment tools available to create an emergency fund, but not all of them are immune from unprecedented market movements. Hence, it is recommended to choose a financial tool that ranks lower on the risk parameter, when you’re looking to create an emergency fund.
When the need of the hour is to grow savings, you should consider investing in safer financial instruments likea fixed deposit. Where you can get guaranteed returns, as the amount you receive at maturity won’t be dependent on the dynamic market movements.
Investing in a Bajaj Finance online FD is a smart choice for creating an emergency fund. Here’s why:
Attractive interest rates
Bajaj Finance offers some of the highest FD rates up to 6.50%. For non-senior citizens, the applicable interest rate is 6.50%, and an extra 0.10% is offered to those who choose to invest online. Senior citizens can avail an additional rate benefit of 0.25%, irrespective of the mode of investment. If you choose a cumulative FD plan these rates are compounded annually. The interest, along with the principal will be disbursed to the depositor at the time of maturity.
To understand how you can create an emergency fund with Bajaj Finance FD, consider investing Rs. 20,00,000 as principal amount. Given below is a tabular representation of returns at maturity.
Thus, you’re ensured of stable returns and substantial gains at maturity. This maturity amount can be used as a source to fund expenses till a normal cash flow is restored.
Loan against FD
Though you’re investing in a fixed deposit for an unforeseen situation, withdrawing the amount before the maturity period can lead to a fall in the interest rate. However, Bajaj Finance offers an alternative, you can avail a loan against your FD to meet the urgent financial requirements. 75% of the fixed deposit amount can be availed as a loan. No interest will get deducted on resorting to this alternative. Thus, you will be shielded against any financial crisis.
Easy investment process
With Bajaj Finance online FD, you can invest in just a few minutes using a hassle-free, paperless online process. With this online FD process, you can opt for contactless deposits and simple document retrieval from the convenience of your own home. There is no need to wait in long queues, and as a senior citizen or non-senior citizen investing online, you also receive a 0.25% and 0.10% additional rate benefit respectively. You can also calculate your returns even before you invest, by using the FD interest rate calculator available on the Bajaj Finserv website.
Bajaj Finance is accredited with the highest safety ratings of FAAA/Stable by CRISIL and MAAA/Stable by ICRA. Higher safety ratings are an indication of timely payments and no defaults. With this, you can be rest assured that your principal amount and steady returns are in safe hands.
Equipped with this information, you can now consider investing in a Bajaj Finance online FD to be prepared forunforeseen emergencies.