January is usually the preferred time to get your investments in order, so your wealth can grow steadily, throughout the year. To this end, it’s also necessary to build a portfolio that strikes a balance between risks and returns. Depending on your goals and risk profile, you can allocate your finances to market-dependent, high-yielding options or choose to invest in safe and reliable instruments like fixed deposits. In fact, the tried-and-tested fixed deposit is a candidate worthy of many an investment portfolio, as apart from safety, it also promises assured, generous returns.
For a better understanding of what makes FD one of the best investment options, read on.
FDs are unaffected by market volatilities
While market-dependent instruments promise attractive yields, they are susceptible to downturns in the financial market and hence, carry the risk of capital loss and negative returns. Subpar returns can be a major roadblock and delay the rate at which you achieve your goals. On the other hand, FDs are not linked to the market and so, it is worth investing in one to hedge your portfolio against risks. While you may question the safety of company deposits, options like the Bajaj Finance FD guarantee stability and security.
Bajaj Finance is the only NBFC in the country with a BBB rating from S&P Global and its FD has received CRISIL’S FAAA and ICRA’s MAAA ratings, the highest in their respective categories. These assure you of timely interest payouts.
FDs offer provisions for flexible investing and auto-renewal
With fixed deposits you can obtain liquidity for all your short- and long-term goals. For instance, if you intend to upgrade to a new car after 5 years, you can start investing in an FD with a maturity period of 60 months. Issuers like Bajaj Finance allow you to time your investments to a tee by offering you a flexible 12- to 60-month tenor and an FD calculator that forecasts your returns within seconds. Further, when you invest with Bajaj Finance you can extend the life of your FDs by opting for auto-renewal at the time of making a deposit. This is perfect for long-term goals such as retirement.
FDs allow you to grow your wealth at competitive interest rates
When you choose the right FD, you can enjoy substantial returns. This is especially the case with Bajaj Finance as here, you earn at an attractive rate of interest of up to 8.35%. To secure the best interest rates, your FD should have a tenor of 36 months or more.
Consider this table to know how you can grow your wealth with a Bajaj Finance FD.
FDs serve as a savings and investment tool
In an industry-first feature offered by Bajaj Finance is the Systematic Deposit Plan (SDP), that allows you to partake in FDs much like an SIP allows you to invest in mutual funds, sans the risk that the latter carries. Here, you can make bite-sized contributions of just Rs. 5,000 per month.
Instead of waiting to accumulate a lump sum, you can make between 6 and 48 monthly contributions and choose tenors between 12 and 60 months. Each contribution counts as a separate deposit that earns interest at the rate prevalent at the time that the deposit is made. Also, while you make the first deposit by cheque, the rest are automated via an NACH mandate, which is a hassle-free way to boost your savings.
To help you understand this better, let’s assume that you are a new customer saving through Systematic Deposit Plan. If you’d like to make 12 monthly deposits of Rs. 10,000 each, for different tenors, let’s see how your savings grow when you choose different tenors.
Hence, with the same amount and number of monthly deposits, you can gain higher interest by choosing a longer tenor. In addition to Systematic Deposit Plan, you can also choose multi-deposit facility that enables you to open multiple FDs of varying tenors using a single cheque. You can also avail a Loan against FD, that allows you to tend to urgent needs without having to break your FDs.
Now that you know what makes an FD a truly versatile investment option, book a Bajaj Finance online FD in a few simple steps right away!
