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Should you invest in a Bajaj Finance FD offering 7.35% interest rate?

As economies across the world grapple with the financial crisis due to COVID-19, stock market volatility has forced investors to rethink their strategies. In the first half of September 2020 itself, average returns on ULIPs were 0.79%, ELSS returns ranged from -2% to -0.11% and returns on hybrid funds ranged from -4.5% to 0.80%.

Should you invest in a Bajaj Finance FD offering 7.35% interest rate?

Despite high popularity of these investment instruments, the above figures indicate higher risk of principal loss and liquidity. Investors have restored their faith in the humble fixed deposit, amidst increasing market risks. This restoration of faith can be surmised from how bank fixed deposit grew steadily during Q1, registering double growth at Rs. 6 lakh crores.

For those seeking a safe and stable investment option that can help them grow savings with attractive returns, Bajaj Finance Fixed Deposit comes across as an attractive proposition. Know more about benefits of investing in this deposit.

Guaranteed returns

As on date, 2,35,925 customers have invested in Bajaj Finance FDs, amounting to a deposit book of Rs. 20,805 crores. These figures are a testament to the trustworthiness of India's only NBFC credited with zero unclaimed deposits. Bajaj Finance also enjoys some of the highest safety ratings, by two of the most reputed financial institutions in India -- FAAA by CRISIL, and MAAA by ICRA. These ratings assure you that your money is in safe hands, and will be credited to your account as soon as it reaches maturity, thereby ensuring default-free experience.

Furthermore, fixed deposits are also immune from market risks, and help investors diversify risk, and park a portion of their savings for emergencies. The best part is, that you can know your returns beforehand by using the online FD return calculator by entering a few basic details. You can know your maturity amount, maturity date and interest amount, even before you invest. This tool can hence, help you with planning your investment better, so you can determine the best way to grow your savings.

Competitive interest rates

If you are an investor interested in creating wealth, the interest rate of your chosen investment instrument is a crucial factor in making your decision. Those below 60 years of age enjoy high interest rates of up to 7.10%, with an additional 0.10% rate benefit on investing online.

Furthermore, senior citizens can reap the benefit of higher interest rates of up to 7.35%, and if you stay invested for 5 years, your money grows by at least 40%. This, in comparison to the negative returns by market-linked investments mentioned above, highlights the importance of FDs for investors with a lower risk appetite, and a long investment horizon.

Below is a table detailing how Rs. 50,000 invested for 5 years in a Bajaj Finance FD offers higher returns, as compared to other non-banking financial institutions, as well as banks on an average.

Fixed deposit type Investment amount(Rs) Interest rate(%) Interest amount (Rs.) Maturity Amount (Rs.)
Traditional banks 50,000 4.9 13,786 63,786
Other NBFCs 50,000 6 17,343 67,343
Bajaj Finance (Non-Senior Citizens Offline) 50,000 7.10 21,087 71,087
Bajaj Finance (Non-Senior Citizens Online) 50,000 7.20 21,437 71,437
Bajaj Finance (Senior Citizens) 50,000 7.35 21,966 71,966

Thus, as you can see, Bajaj Finance offers one of the highest FD interest rates in India, which make it one of the most preferred issuers today.

Start saving small

You can invest in a Bajaj Finance FD starting with a lump sum amount of Rs. 25,000.

However, those who do not have a lumpsum amount to get started, can also start investing with just Rs. 5000 per month with Systematic Deposit Plan (SDP), and get monthly returns if they opt for the Monthly Maturity Scheme. Alternatively, the payout for all deposits under SDP can be received on a single day through Single Maturity Scheme.

This makes each investment a separate FD that fetches the interest rates applicable for that period, similar to SIP; albeit with more security, and assurance of guaranteed returns.

Ease of liquidity

If you are in the midst of an emergency, and require funds immediately, the lock-in period of ULIP or ELSS funds can be a deterrent to avail immediate financial assistance.

However, you can withdraw the amount as per your requirement from Bajaj Finance FD after the minimum lock-in period of 3 months, as mandated by RBI. Your principal amount remains untouched; however, you may receive lower interest. Nevertheless, this facility gives you access to your Bajaj Finance FD even in tough times to ease a liquidity crunch.

Investing in online FD

Apart from all the benefits mentioned above, you do not need to visit a branch or office in these times of social distancing, if you wish to invest in a fixed deposit. Stay safe within the confines of your home, and reap the benefits offered by Bajaj Finance FD by making the deposit online, where the process is contactless, paperless and hassle-free. You can also obtain information about your FD online, which is mailed to you on your registered e-mail ID. Furthermore, you can also monitor your fixed deposit online, and get maturity proceeds credited directly to your bank account.

Thus, Bajaj Finance fixed deposit has emerged as the ideal investment instrument, that offers both safety of your investment, along with the opportunity to earn higher returns. It is the perfect digital solution for all your investing needs across all age groups and risk appetites, allowing you to grow your corpus and earn attractive interest rates.

Furthermore, by allowing investors to open FDs online, Bajaj Finance has also removed the hassles of lengthy documentation, along with long wait times, enabling you to open a fixed deposit with a few simple clicks.

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