According to a report presented by the Trading Economics, deposits in Indian financial market saw a year on year growth of 9.5% as of January 17th 2020. According to the statistical data released by the RBI, fixed deposits accounted for 57.7% of these total deposits in the fiscal year 2017-18.
Even though customers are spoilt for option when it comes to how to invest money today, they choose to stick to the safer option – fixed deposits. These instruments focus on stability and assured returns, minimising market volatility. In most cases, FD investments guarantee zero loss for the investor.
These are one of the safest investment options for any customer that has substantial funds in hand and looking to invest it. They can reach any government-backed financial company or private financial institutions to invest in one such term deposits. Bajaj Finance is one such name that offers Fixed Deposit as a product that can offer customers a high return on investment which is more than any regular savings account. FD interest rates for senior citizens can go up to 8.35%.
How are fixed deposits a low-risk investment plan?
- Calculated returns
In case of fixed deposits, customers can know beforehand about the returns they are liable to receive at the end of the tenor. Financial companies offer customers with a tool to calculate the maturity amount and interest payout at the end of tenor for a cumulative or non-cumulative type of deposit. Investors can streamline their financial plan with Bajaj Finance FD calculator and make a wise financial decision.
- Increased liquidity
The returns to be paid are not subject to change, and customers can expect returns as expected unless they opt for a premature withdrawal. Still, premature withdrawal of fixed deposit is not financially advisable as it can affect the interest payout, and customers may have to pay a penalty for the same.
- No market interference
Since interest rates offered to the customer at the time of term deposit is fixed, any changes or alterations in the present rates do not affect the terms of FD. Hence, these are pre-empted from market risks.
- Flexible tenor
Fixed deposits are often the choice of investment for many average investors because of the flexibility of tenor it offers. Whether one is looking to achieve short-term goals or long-term objectives, FDs are suitable for every situation. For instance, Bajaj Finance FDs come with terms ranging between 1 and 5 years.
Keep in mind, longer maturity terms usually result in impressive returns, while lower tenor may limit earnings significantly.
- No need for a lump-sum investment
Bajaj Finance additionally offers the Systematic Deposit Plan feature on their Fixed Deposit. With this feature, there is no need to invest a lump sum amount to initiate the FD. He/she can invest a small amount every month and still grow a large corpus over the chosen tenor.
How to invest money?
To invest money in a fixed deposit scheme offered by Bajaj Finance, individuals should first make sure of the returns they can expect from the term deposit. They can check new customer interest rates and FD interest rates for senior citizens as per their requirement.
Based on this rate, individuals can calculate the interest payout for the same. They need to input deposit amount, tenor, and rate of interest to check out the interest payable to them.
Once customers are aware of the returns, they can initiate an FD from the official website and follow up the procedure as mentioned. They need to provide KYC documents and deposit the amount using multiple payment options. One can use a single cheque for multiple deposit accounts as well.
It is an investment plan that let users plan their finances wisely by choosing flexible tenor and options for interest payout, and this makes it one of the feasible options.
The pointers mentioned above should help prospective investors determine how to invest money with minimal risks. Plan your financial fruitfully with the help of a Bajaj Finance Fixed Deposit.