Reasons To Invest In Bajaj Finance FD Over A Bank FD

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Investment

oi-Olga Robert

By Staff

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Updated: Thursday, December 24, 2020, 10:48 [IST]

The returns on investment depend on the state of the economy. In the present scenario, returns on fixed-income instruments have fallen, because of measures taken by the central bank. Since February 2019, the RBI has cut repo rates seven times, thus bringing it down by 250 cumulative points. This measure was primarily undertaken to inject liquidity into the economy, and ward off the threat of a liquidity crunch. The rising inflationary trends had also prompted the central bank to opt for rate cuts.

On December 4, the Monetary Policy Committee (MPC) of the RBI decided in favour of maintaining the status quo for the existing repo rate, keeping it unchanged at 4%. The MPC also decided to maintain an accommodative stance, at least for the present financial year. This, in turn, means that FD rates in India are going to remain unchanged. At present various public, private and foreign banks provide fixed deposit interest rates ranging from 2.3% to 6%.

How should you invest if you have a low-risk appetite?

So, if you are a risk-averse individual, looking for investment in fixed deposit schemes, what should be your future course of action? Should you continue making investments in FD schemes? The foremost step is to zero-in on a financial institution that provides a comparatively better rate of interest on fixed deposit schemes. Arguably the best option is to invest in a Bajaj Finance online FD, which provides interest rates up to 6.85%. You should continue making investments in fixed deposit schemes of a reliable financial institution, as according to industry experts, the existing low-interest regime is not going to continue indefinitely, and the RBI is unlikely to make any further cuts in the repo rates. Fixed deposit schemes continue to remain among the safest investment instruments, and can help you fulfill your financial goals. Here is a look at the reasons for investing in a fixed deposit scheme offered by Bajaj Finance Limited vis-a-vis other bank FD schemes. 

Guaranteed gains

As mentioned earlier, with the repo rate cuts, the returns on bank fixed deposit schemes can be as low as 2.3%. But with Bajaj Finance fixed deposit schemes, you can get access to attractive returns, ranging from 6.60% to 6.85%. Here is a look at the returns on fixed deposit schemes for various categories, for a tenure of 36 months. 

Investor type Senior citizen Non-senior citizens making an online investment in FD Non-senior citizens making an offline investment in FD
Investment amount Rs. 2.5 lakh Rs. 2.5 lakh Rs. 2.5 lakh
Interest % 6.85% 6.70% 6.60%
Interest earned Rs. 54,975 Rs. 53,692 Rs. 52,839
Maturity amount Rs. 3,04, 975 Rs. 3,03,692 Rs. 3,02,839

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

You should also remember that, at present, these rates of return are among the best in the market. You also stand to earn more if you continue to remain invested for a longer period. 

Now let’s have a comparison between corpus parked in Bajaj Finance FD and money parked in a bank FD for a senior citizen.

Investment amount in Bajaj Finance FD Investment tenure in Bajaj Finance FD Interest rate in Bajaj Finance FD Interest payout in Bajaj Finance FD Maturity amount in Bajaj Finance FD Investment amount in Bank FD Investment tenure in Bank FD Interest rate in Bank FD Interest payout in Bank FD

Maturity amount in Bank FD

R. 25 lakh 60 months 6.85% Rs. 9,81,871 Rs. 34,81,871 Rs. 25 lakh 60 months 6.2% Rs. 9,00,467 Rs. 34,00,467
Rs. 25 lakh 48 months 6.85% Rs. 7,58,653 Rs 32,58,653 Rs. 25 lakh 48 months 5.3% Rs. 5,86,070 Rs. 30,86,070
Rs. 25 lakh 36 months 6.85% Rs. 5,49,745 Rs 30,49,745 Rs. 25 lakh 36 months 5.1% Rs. 4,10,496 Rs. 29,10,496

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

Safety of investments

Before investing your hard-earned money in a fixed deposit, always make it a point to assess the risks with due diligence. Unlike other bank deposits, Bajaj Finance fixed deposit schemes are backed by the highest safety standards, reflected in its ratings. This fixed deposit has an FAAA (stable) rating by CRISIL, along with MAAA (stable) rating by ICRA. The ratings are indicative of the fact that your investments are completely safe and secure with the financial institution. 

Flexibility in investments

A key highlight of Bajaj Finance fixed deposit schemes is the provision of providing considerable flexibility to investors in making investments. As opposed to a bank deposit, where you have to typically make a lump-sum investment, Bajaj Finance provides you the option of investing in fixed deposit schemes on a monthly basis. With the Systematic Deposit Plan (SDP), you can invest a minimum amount of Rs. 5,000 each month for a period ranging from 12 months to 60 months. What’s more, the SDP also allows you to select your preferred mode of receiving interest payouts: either under a monthly scheme or via a single maturity scheme. Under the monthly maturity scheme, you can make 6 to 48 investments, each maturing as per the selected tenure. Here, you can receive monthly interest payouts post maturity of every deposit. Under the single maturity scheme, you will receive all your maturity proceeds on a single date. 

Other benefits

Along with guaranteed returns, Bajaj Finance fixed deposit schemes also allow you to avail a wide array of benefits, like auto-renewal facility, multi-deposit facility and loan against FD. While the provision of auto-renewal can help you to remain invested for a longer tenure without any manual intervention, the multi-deposit facility allows you to open multiple fixed deposits via a single cheque. In case of a sudden financial emergency, you have the option of taking a loan against the fixed deposit, without breaking your investment. You can also determine your returns beforehand by using the Bajaj Finance FD Calculator, which helps you know your maturity details before you invest.

Thus, unlike bank FD schemes, where the gains are at best miniscule, a Bajaj Finance fixed deposit offers you a wide array of advantages – from guaranteed gains to the safety of investments, and from the flexibility of making investments to a range of other benefits. Choose to secure your financial future today by investing in a Bajaj Finance fixed deposit scheme.

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