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Start the New Financial Year on the Right Foot: Invest in an FD

by businesswireindia.com

Business Wire India
With the new financial year on the horizon, the time is right for a re-assessment of your risk profile, given the volatility in the market today and the condition of the Indian economy. The Reserve Bank of India (RBI) announced on March 27, 2020 a whopping 75 basis points cut in the repo rate, bringing it down to 4.4 percent as a response to the ongoing coronavirus induced crisis.

In these uncertain times, to maintain a healthy balance and ensure that your investment strategy for the coming financial year yields profitably, add to your portfolio instruments like a stable Fixed Deposit.

The FD has been a trusted ally of Indian investors for years, offering assured returns at the end of the maturity term. Further, investing in an FD is easy; however, for optimal returns, you must pick the right issuer. Bajaj Finance, for instance, offers a competitive rate of interest, up to 8.05%, through which you can augment your wealth by over 45% over a 5-year tenor.

Read on to know why investing in a Bajaj Finance FD makes for a smart move in the new financial year.
Earn guaranteed returns without market risks
FD returns are not linked to the market, and with a Bajaj Finance FD, even new customers get FD interest rates of up to 7.80%. Courtesy of a 0.25% hike, senior citizen investors get a rate of up to 8.05%. Likewise, existing customers earn at a rate of up to 7.90%.
Safety and returns are key parameters when identifying a smart investment avenue for the coming financial year, as you must be able to combat inflation with minimal risks. Bajaj Finance couples generous returns with investment security as its FD carries CRISIL FAAA and ICRA MAAA ratings. With high credit ratings backing the instrument, you can look forward to assured proceeds and zero defaults.
The table below shows the interest payout and total returns earned by different customer types.
  • Initial deposit: Rs.30 lakh
  • Tenor: 60 months
Customer type Interest rate (%) Interest payout (Rs.) Maturity amount (Rs.)
New Customer 7.80 13,67,320
Senior Citizen 8.05 14,18,197 44,18,197
Existing Customer 7.90 13,87,615 43,87,615
Strategise your investments according to your goals
Bajaj Finance allows invest over a flexible tenor that ranges from 12 to 60 months. This enables you to align your investments to your short- and medium-term goals. You can use the FD calculator to forecast your gains and fine-tune your investment for optimal returns.
To understand how investing for a longer duration benefits you, take a look at the returns when you, as a regular customer, invest Rs.40 lakh for varying tenors.
Initial deposit: Rs.40 lakh
Tenor (months) Interest rate (%) Interest payout (Rs.) Maturity payout (Rs.)
12 7.60 3,04,000 43,04,000
24 7.65 6,35,409 46,35,409
36 7.70 9,96,974 49,96,974
48 7.80 14,01,757 54,01,757
60 7.80 18,23,094 58,23,094
Further, in case you have a big-ticket expense to tackle in the future, you can use the Auto-Renewal facility to invest for longer. Here, your FD is renewed automatically for another term. This is advantageous because it is a hassle-free option and allows you to profit from a renewal bonus, currently a 0.10% interest rate hike.
Avail periodic liquidity for recurring needs
Bajaj Finance allows you to avail interest payouts every month, quarter, half-year, or year. This way you can earn income from your investments, especially if you are a retired senior citizen. Moreover, through the Multi-deposit facility, Bajaj Finance allows you to book several FDs of varying amounts and tenors via a single cheque. This makes laddering a lot easier and allows you to secure timely liquidity for multiple goals with ease.
Invest in an FD via small monthly contributions 
Thanks to the Systematic Deposit Plan (SDP) feature offered by Bajaj Finance, young earners can benefit from FD without saving a lump sum amount first. The facility is similar to an SIP, albeit without the risk. Here, you can make 6 to 48 contributions of Rs. 5,000 per month or more for a tenor ranging between 12 and 60 months. The first contribution is to be made by cheque and subsequent ones are automated via a NACH mandate. Each contribution is counted as a separate FD, yielding interest as per the rate prevalent on the date of deposit. Once the first FD matures, you get liquidity every month. 
Now that you know how the Bajaj Finance FD can be effective at hedging your portfolio against risks and building your savings reliably, book a Bajaj Finance online FD from the comfort of your home and start the new financial year on the right foot!
Source: Businesswire