Invest in FD now before interest rates fall
The month of February has put an end to most speculations surrounding Budget 2020 and the repo rate changes. The month began with the announcement of Budget 2020, which created room for higher savings for tax-payers. However, soon after, the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.15%. The announcement of Long-Term Repo Operations (LTRO) was another major update, which shall enable easier access to durable liquidity for banks. While it may be great for borrowers, it may hit savings, as deposit rates are likely to be lowered.
Amid speculations about the reduction in rates for Government savings schemes, fixed deposit comes across as a lucrative option for risk-averse investors seeking assured returns. These features, amongst others, make an FD a go-to investment option for several Indian investors, who often choose it over other market-linked investments like mutual funds or stocks. In fact, in 2019, investments by Indians in mutual funds dropped by a whopping 41%. In fact, equity and ELSS investments too attracted a far lower inflow when compared to that in 2018.
Invest in FD before interest rates come down
However, the announcement of LTRO has resulted in lowering of FD rates by a few banks, leaving investors with fewer alternatives. However, you can still reap the benefits of returns of up to 8.35% with company FDs like Bajaj Finance Fixed Deposit. Here, you not only benefit from attractive interest rates, but also value-added features that complement your wealth generation efforts.
Read on to know more about the benefits of investing in Bajaj Finance FD.
Highest safety of your deposits
It may be tempting to choose issuers, only on the basis of FD interest rates, which are now at an all-time low. However, in the present economic climate, the risks of company defaults are high, and leading credit rating agencies are adjusting the safety ratings.
However, your investments are safe with Bajaj Finance Fixed Deposit, which has secured the highest stability and credibility ratings of FAAA from CRISIL and MAAA by ICRA. These are the highest safety ratings, which indicate that your money is in a highly stable environment and that your issuer is adept at offering timely interest payouts.
Built on a legacy of trust, Bajaj Finance Limited enjoys the trust of more than 2 lakh FD customers, who have contributed towards a deposit book of nearly 20,607 crores.
Choose tenure and periodic payout frequency
A smart way to invest is to line up your investments with your goals. Thankfully, with this FD, you can opt for a flexible tenure ranging from 12 to 60 months, and enjoy a generous FD interest rates all throughout. Currently, you can get up to 8.35% as a senior citizen and 8.10% as a new investor, on an FD booked for at least 36 months with interest payable at maturity. So for long-term goals such as retirement or your child’s education, you can pick a longer tenor, and for other goals like buying a car or going on an international holiday, you can pick a shorter tenor. On maturity, you’ll have the funds you need to achieve your goal.
To understand better how a long tenure can yield higher returns, consider the following example.
These results were generated using the FD calculator and you too can make use of this handy tool to forecast returns before you invest.
Monthly savings with Systematic Deposit Plan
For young-earners or first-jobbers with a limited earning capacity, consistently saving money can be a tough ask. However, through the Systematic Deposit Plan (SDP) feature of the Bajaj Finance FD, you can make smaller monthly deposits of just Rs.5,000 and reap all the benefits that this instrument has to offer. With this feature, each deposit counts as a new FD and you can set a tenor ranging from 12 to 60 months. The tenor you choose for the first deposit will apply to all subsequent deposits as well. Moreover, depending on what you can set aside and your goals, you can make anywhere between 6 to 48 deposits.
Bajaj Finance also extends to you the Auto-Renewal facility that allows you to automatically reinvest at maturity. Here, you reinvest fully or partially, extremely conveniently, without filling out any additional forms. What’s more, this feature also grants you bonus interest on FD renewal. At present, you get an extra 0.10% interest on the base rate being offered.
Loan against FD facility
Another key feature of this FD is that it allows you get access to funding in times of emergency. While you can prematurely withdraw from your FD, you can also opt to take a loan against your FD without disrupting your investment. On processing of your application, you can get financial assistance of up to Rs.4 lakh.
To avail these benefits and more, book your Bajaj Finance online Fixed Deposit today. All you have to do is fill an application form and await a call from an authorised representative.
Disclaimer: This content is distributed by Bajaj Finserv. No HT Group journalist is involved in the creation of this content.