For even greater value on your investments, you now enjoy higher FD rates when you invest in Bajaj Finance Fixed Deposit. This is thanks to the special tenure provision, wherein you get higher rates on specific timelines. Such features make it easier for you to invest and optimise your earning to better align with your goals.
With FD rates going up to 7.95% per annum, you can make the most of this instrument no matter your investor profile. Simply plan your fixed deposit efficiently with the FD calculator and identify terms that help you maximise your returns.
To learn more on how you leverage the competitive FD rates and securely grow your wealth, read on.
Choose a longer tenure and earn better returns through power of compounding
When it comes to making the most of your fixed deposit investment, the smart thing to do is opt for a longer tenure and the cumulative payout option. Your earnings from a fixed deposit are dependent on your tenure, among other factors. When you invest for a longer tenure, it allows you to take advantage of compounding, and with high FD rates now on offer, you stand to earn generously.
Additionally, cumulative FDs have a higher interest rate as compared to the non-cumulative FDs. This further gives you the opportunity to earn better returns. To help you understand the impact of cumulative FD for a longer tenure, here’s a table with an investment of Rs.5,00,000 made for varying tenure options.
Based on the above table, earnings for 36 months are substantially higher than your earnings would be if you invested for 17 months. Similarly, if you opt for a non-cumulative FD for 36 months, your earnings would be lower as well.
Ladder your FDs and opt for the special tenure options for the best returns
Laddering your fixed deposits is one of the best ways to make the most of your investments. Through laddering you, stagger your investments in a way that allows you create a loop of renewal after maturity at periodic intervals. Here, instead of investing a lump sum into one FD, you divide the corpus into multiple FDs, each maturing at different tenure.
For example, if you want to invest Rs. 5,00,000, you would make 2-3 FDs that amount to Rs.5 lakh. Your first FD will mature at 1 year, second at 2 years, and third at 3 years. Subsequently, you can then choose to reinvest your earnings, based on your goals. By staggering your investments like this, you enjoy liquidity and can also lock-in your investments at prevailing FD rates for a given timeline.
When laddering, you can make the most of the rising FD rates by choosing special tenure options offered with a Bajaj Finance Fixed Deposit. These special tenure options have higher FD rates as compared to the regular tenures and go up to 7.95% per annum.
As a principle, higher FD rates result in better returns. Here is an example of how laddering a Rs.5,00,000, as a non-senior citizen, into 2 FDs at special tenures is results in better returns than regular tenures:
Along with these FD rates at special tenure options, there are other features that make the Bajaj Finance Fixed Deposit an attractive option. For one, you can begin your investment with just Rs.15,000 and enjoy the benefits that come with this fixed deposit. You can even use an FD calculator to plan your investments in a smarter way.
Additionally, the Bajaj Finance Fixed Deposit has a digital process for investment and renewal, making managing it easier, simpler, and quicker. Open FD today and grow your wealth flexibly and seamlessly with Bajaj Finance. The fixed deposit also enjoys a [ICRA]AAA(Stable), indicating the highest level of safety and lowest investment risk. BFL FDs have also a rating of CRISIL AAA/ STABLE which is another reason to invest.
