Invest in a Bajaj Finance online FD to ride market volatilities

While the stock market has always had its ebbs and flows, this year has not been the most rewarding for investors. At the beginning of the year, Sensex and Nifty were amid a dream run, with Sensex recording an all-time high of 42,273, while Nifty hit its record peak of 12,430. However, things went south just two months later, with investors losing Rs. 51 lakh crores in market wealth within a span of 60 days.

With the equity markets, it has always been a tale of two halves. The economic growth at the beginning of the year slumped to an 11-year low, which has further exacerbated owing to the global economic downturn. The country's GDP during the April-June quarter contracted by an astounding 23.9 percent year-on-year. It is now being estimated that the country's GDP will contract 5.9 percent this financial year.

How have these events impacted investors?

While greater emphasis has always been placed on financial prudence and capital safety, this year has been a harrowing experience for investors. If one wants to see the positive side of the outcome, it has also been a good learning experience for seasoned investors, as well as for the prospective investors. Investors today are searching for safer options, which inherently carry minimal risk. Furthermore, young adults are now encouraged to add debt assets to their portfolios to counteract volatility.

These events have brought fixed deposit back into the attention, as it is one of the most preferred instruments for risk-averse investors to park their corpus. Traditionally, FD has been very popular as its returns do not get affected by the market volatility. Now more than ever, investors must prioritize capital safety over capital appreciation, which makes fixed deposits the ideal option.

What makes Bajaj Finance FD a better investment option?

When searching for a low-risk investment option, it is important to consider two aspects: safety and capital appreciation. It was recently reported that the Indian banks could be heading towards a 20 trillion hole. On the other hand, in the past few months, top NBFCs have also defaulted on loan repayments, which is why it is crucial for investors to check safety ratings of the institution they want to park their money in.

This is where Bajaj Finance Limited comes into the picture. Not only are the investors assured about the safety of Bajaj Finance fixed deposit, owing to the highest safety ratings of FAAA by CRISIL and MAAA by ICRA, but Bajaj Finance is also one of the very few financial institutions that can boast of a zero-default experience.

Invest in Bajaj Finance online FD

For those looking for the convenience of investing from the comfort of their homes, there is an option to invest in a Bajaj Finance online FD. Not only does it enable you to invest conveniently through a paperless procedure, but also offers an additional rate benefit of 0.10% to individuals below 60 years of age.

Furthermore, depending upon their needs and requirements, investors can either opt for cumulative or non-cumulative FD. Investors also have the flexibility to choose their preferred tenures, ranging from 12 months to 60 months. If an investor opts for non-cumulative FD, they can choose the interest payout frequency option that better caters to their requirements.

Bajaj Finance offers returns of 7.10% to individuals below 60 years of age. However, these individuals can gain an additional rate benefit of 0.10%, thereby getting lucrative FD interest rates of up to 7.20% by investing in an end-to-end online FD. Senior citizens can gain additional rate benefit of 0.25% with returns up to 7.35%, regardless of mode of investment.

To better understand the Bajaj Finance non-cumulative FDs, let us assume that an investor invested Rs. 25,00,000 in FDs for a period of 5 years, and opted to receive a periodic interest payout. Depending on the interest payout frequency, they can expect the interest payout amount as shown in the table below.

Note: ROI in the above calculator may vary upto 4 bps with the actual rates offered

Investors can also calculate the interest payout amount, depending on the amount they want to invest using the FD interest calculator.

Unlike other FD plans, the Bajaj Finance fixed deposit scheme does not require investors to pool in a large amount of money. The minimum amount required to invest in lump-sum is Rs. 25,000, while investors can also opt for the Systematic Deposit Plan (SDP), which lets them invest with just Rs. 5,000 per month. Thus, Bajaj Finance offers some of the highest FD interest rates in India, while offering greater convenience by allowing investors to open an FD account online with just a few simple clicks.