Secure investment options let individuals ensure that their money grows at a pre-determined and stable interest rate. The rate remains far from exposure to any market volatility, as in the case of mutual funds and stock markets.
Bajaj Finance, one of the leading non-banking financial institutions (NBFCs) in India, offers secure investment options to its customers through its fixed deposit (FD) and Systematic Deposit Plan (SDP), a variant of FD. By investing through these options, individuals can balance their investment portfolio with low-risk instruments and yield a stable return.
Bajaj Finance Fixed Deposits as secure investment options
Bajaj Finance lets its customers invest through different instruments, including FDs, mutual funds, stocks, etc. However, stock market and mutual fund investments are highly risky, as their returns closely follow the ongoing market sentiments.
Individuals with low-risk appetites can start investing with Bajaj Finance FDs to secure a stable return at a predetermined interest rate, which is independent of the market sentiment. The interest rate at which individuals book their FDs does not change during the tenure.
Currently, with the outstanding increase in the repo rate, from 4.00 per cent in May 2022 to 6.50 per cent till February 2023, Bajaj Finance also has revised its FD rates w.e.f 20 Jan, 2023. By investing a lump sum between Rs 15,000 and Rs 5 crore, individuals can now book FDs and secure an interest rate of up to 8.10 per cent p.a.
Periodic invest with small amounts through Bajaj Finance SDPs
Bajaj Finance Systematic Deposit Plans (SDPs) are for those individuals who want to invest in FDs strategically by paying a small amount on a monthly basis. They need to pay an amount starting from Rs 5,000 monthly for up to a flexible period of 1-5 years.
With each deposit, a new FD is booked under the investors' names. They can choose to get the cumulative fund value after maturity or go with the Monthly Maturity Scheme. In the latter option, they will receive the principal and accrued interest only after each of the deposits mature. Since SDP is a systematic variant of FD, Bajaj Finance offers an interest rate of up to 8.10 per cent in this investment option as well.
Factors that influence the interest rate in FD and SDP
The interest rate of FDs and SDPs remain the same throughout the tenure. This is why, before making investments through these instruments, individuals need to know how they can secure a higher FD rate.
Following are the aspects that influence this rate.
- Duration of deposit: Individuals get a higher FD rate when they keep their deposit with the financial institution for a longer period.
- Payout option: If the interest payout is cumulative, customers get their compounded interest only after the end of the maturity period. It also offers a higher interest rate compared to non-cumulative payouts.
- Payout option: The FD rate is higher for senior citizen customers than the non-senior citizen customers.
- Special tenure: There are 7 special tenures for Bajaj Finance FD, including 15, 18, 22, 30, 33, 39, and 44. Individuals booking their FDs for these special tenures can secure additional interest rates.
Go through the table to know how individuals can earn higher interest by booking FDs for a special tenure:
Note: All these results have been collected from the Bajaj Finance FD Calculator.
Individuals intending to make their investment for the future through secure instruments can go with Bajaj Finance FD or SDP. These will help them grow their deposits at a stable interest rate. Willing customers can book their FDs online simply by filling in the online application form.
Bajaj Finance Ltd. ('BFL', 'Bajaj Finance', or 'the Company'), a subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 62.91 million customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/STABLE & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BB+/Positive and a short-term rating of B by S&P Global ratings.
To know more, visit www.bajajfinserv.in/investments.
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( With inputs from ANI )
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