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Four things that can help maximise your returns with Bajaj Finance Fixed Deposit

FPJ Web Desk | Updated on: Tuesday, April 19, 2022, 01:53 PM IST

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With Indians investing a few trillion rupees in fixed deposits FDs in 2020, it is safe to assume that this instrument is a popular choice for the average investor. An FD can help you grow your wealth, provided you make an informed decision. For instance, modern issuers have made it easier for you to access and invest in their offerings. As such, it falls onto you to choose the correct option. But assessing the plethora of options available in the market can be a tricky task. While most compare FD rates and invest accordingly, there's more to it if you are to enjoy a favourable experience.

High returns are a priority, but it is also crucial that you not face other issues when investing your hard-earned money. For this reason, ensure to assess FD offers carefully and thoroughly, checking all the key factors. To help you get started on the right track, here are a few things to look for in an FD.

Flexible investment tenor

Your investment tenor is one of the most critical factors affecting your returns. It is because issuers offer varying FD rates based on the tenor. Usually, a longer tenor will have the highest rates on offer. Secondly, your earnings are higher the longer you stay invested due to interest compounding. So, picking a flexible tenor is essential because it allows you to maximise your returns based on your goals.

If you're looking to invest and earn in the short-term, the issuer you pick should allow you to do so and still make adequate returns. It isn't uncommon to get much lower FD rates when choosing a short tenor, so you must scout for an issuer that offers the best value. Similarly, if you are looking to invest over the long term and toward an obligation in the future, the option of a lengthy tenor with reasonable rates is necessary.

Generous FD rates

In general, fixed deposit interest rates are the primary deciding factors for most investors. A thoughtful way to go about it is to compare offers based on their FD rates and shortlist the top offers. Then, you can assess these instruments in detail and based on the FD rates applicable for the different tenor options. Apart from your investment tenor, these FD rates are also dependent on your age, inflation, recession, or the liquidity in the market. As such, you should invest in fixed deposits when the FD rates rise. But if you want to maximise your returns, choose company FDs. These issuers usually offer higher FD rates than banks.

Here are the interest earnings for Rs. 5 lakh investment across varying tenor options.

For Non-senior citizen investors:

For Senior citizen investors:

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Note: The calculation is done using the Bajaj Finance FD Calculator.

Multiple payout options

It is always better to wait until the FD matures to receive the payout for wealth creation purposes, but you may also require liquidity during the tenor. To ensure that you can meet your needs, check if the issuer has suitable payout options. Having the choice to get your interest earnings on a monthly, quarterly, half-yearly, or annual basis can be crucial to investing wisely.

However, keep in mind that your payout option will also affect the FD rates offered. Cumulative payout options usually have a higher rate, whereas non-cumulative FDs may have a lower rate. You can use an FD interest calculator to know how the payout options affect your returns.

The credibility of the institution

The credibility of the institution speaks to the safety of your investment. Rating agencies such as CRISIL issue credit ratings to issuers and their FDs. The higher the rating is, the safer is your investment. CRISIL assigns the' FAAA' rating to the company with the highest safety and stability. These ratings are based on myriad factors and help investors assess FDs. Lower ratings translate to standard safety, so it is recommended to choose the company that has a rating not less than FAA.

With these in mind, make sure you make the right decision at the right time to maximise your returns. Use an FD interest calculator to estimate your returns for different offers. When comparing the various instruments in the market, consider the Bajaj Finance Fixed Deposit. It is one of the safest investment options, with an 'FAAA' rating by CRISIL and an 'MAAA' rating by ICRA. You also get among the highest FD rates in the market, up to 7.05%, and a flexible tenor that ranges up to 60 months.

Thanks to a low minimum deposit, you can start your investment quickly with just Rs. 25,000. You don't have to accumulate a large corpus to get started. For a paperless and seamless experience, invest online now.

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Published on: Tuesday, April 19, 2022, 01:53 PM IST