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Choose utmost safety of your earnings with Bajaj Finance Fixed Deposit

Get assured returns up to 7.35% with Bajaj Finance Fixed Deposit

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Published: Sep 22, 2020 05:00:22 PM IST
Updated: Sep 22, 2020 09:10:05 PM IST

Choose utmost safety of your earnings with Bajaj Finance Fixed Deposit
While market-linked investments have always been risky propositions, with the returns depending on the performance of the market, 2020 has been a particularly volatile year to make any prediction for the investors. This year witnessed economic activities around the world coming to a near-standstill for a substantial period, which has had a far-reaching and profound impact.

As per IMF, the global economy is expected to shrink by 3 percent this year, which would make the economic decline the worst since the Great Depression a century ago. Furthermore, it is now being predicted that the country’s economy will witness a double-digit fall. While Goldman Sachs Group Inc. have predicted a 14.8 percent contraction in the GDP through March 2021, Fitch, the global ratings agency, recently estimated the country’s GDP to contract 10.5 percent in 2020-21.

These are particularly worrying times for investors, who are searching for safer ways to park their money. When it comes to choosing instruments that inherently come with lower risk (fixed-investment options in particular), fixed deposit is one of the most popular options.

Investors take flight-to-safety with Fixed Deposit

During the initial 6 weeks of lockdown, Indian banks witnessed a sharp rise of over 2.8 lakh crore in deposits (until May 8th), a growth of over 2 percent in outstanding deposits in a six-week period. Most of the money went into fixed deposits, with the outstanding amount rising to 123.9 lakh crore, an increase of Rs. 4.4 lakh crore during that period.

This renewed optimism and growing interest among investors in fixed deposits highlights the positive sentiment surrounding fixed-investment options, during times of uncertainty. It also highlights the fact that even young investors are now prepared to have a long investment horizon, and are focusing on long-term wealth creation strategies, making fixed deposits the ideal investment instrument.

Some of the most popular low-risk financial investment options include Public Provident Fund (PPF) and Senior Citizens Savings Scheme (SCSS). As of April 2020, PPFs offer returns at a rate of 7.1 percent per annum, and usually come with a lock-in period of 15 years. PPFs do offer partial liquidity through partial withdrawals and loans, but they are subject to certain conditions only after the 7th year.

Assured returns with Bajaj Finance FD

Bajaj Finance FDs offer fixed deposit interest at a rate of up to 7.35 percent without a lock-in period, and let investors make partial withdrawals according to their needs and requirements. Furthermore, Bajaj Finance FDs carry the highest stability ratings of FAAA by CRISIL, and MAAA by ICRA, assuring investors utmost safety of their investments. Once the FD reaches its maturity, the maturity proceeds will be deposited to your bank account, thus ensuring a default-free experience.

Below is a table highlighting the amount accrued through Bajaj Finance FD, in comparison with other NBFCs and banks for a period of 5 years, with an investment amount of Rs. 20,00,000.

Fixed deposit type

Investment amount (Rs.)

Interest rate (%)

Interest (Rs.)

Maturity

Amount (Rs.)

Bajaj Finance (Senior Citizens)

20,00,000

7.35

8,78,622

28,78,622

Bajaj Finance (Regular Online)

20,00,000

7.20

8,57,496

28,57,496

Bajaj Finance (Regular Offline)

20,00,000

7.10

8,43,493

28,43,493

Other NBFCs

20,00,000

6

6,93,710

26,93,710

Traditional banks

20,00,000

4.9

5,51,442

25,51,442

Bajaj Finance FD also enables you to receive periodic payouts, so that you can fall back on a regular revenue stream in times of emergencies. This is especially beneficial for senior citizens, who can rely on the periodic payouts for their post-retirement expenses. You can invest a lumpsum amount for a fixed tenure, and choose the frequency of the payouts -- either on monthly basis, quarterly basis, bi-annual basis or annually. You can also use Bajaj Finance FD return calculator to determine the returns beforehand, and to plan your investments better.

Let us do a quick calculation, with the assumption that you invest Rs. 30,00,000 for a tenure of 3 years, and opt for a monthly payout.

Deposit Amount (Rs.)

Tenure

Payout Frequency

Interest Rate (%)

Interest Payout (Rs.)

30,00,000

3 years

Monthly

7.11

17,775

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

Thus, you receive an interest payout of about Rs. 17,775 every month for a period of 3 years.

You can invest in Bajaj Finance FD with a minimum lump-sum amount of Rs. 25,000, or with just Rs. 5,000 per month through Systematic Deposit Plan. Furthermore, you can also get monthly returns if you choose the Monthly Maturity Scheme, or receive the payout at once through the Single Maturity Scheme. Bajaj Finance FD thus offers security and greater convenience, along with assured returns.

Apart from attractive interest rates, flexible payment terms and substantial returns, Bajaj Finance Limited also boasts of zero unclaimed deposits, making it the safest investment instrument for investors. You can now simply lock into Bajaj Finance online FD with a few simple clicks, and avoid any and all hassles of lengthy documentation, along with long wait times.

Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.

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