Forbes India 15th Anniversary Special

Why should you invest in a Bajaj Finance fixed deposit now?

Published: Aug 8, 2019 01:30:30 PM IST
Updated: Aug 8, 2019 06:15:37 PM IST

Why should you invest in a Bajaj Finance fixed deposit now?

Amongst the many investment options available in the country, fixed deposits are often overshadowed by other growth-oriented avenues. However, with interest rates up to 8.95% and high safety of investment capital, options like Bajaj Finance Fixed Deposit are becoming more and more popular.

There’s no doubt that this simple, yet effective investment instrument has become the key to guaranteed high returns. Here’s why you need to invest in a Bajaj Finance Fixed Deposit now.

Announcements made during Union Budget 2019
Finance Minister, Nirmala Sitharaman, presented the first budget for the Government’s second term on 5 July 2019. Apart from tax deductions to those buying affordable homes and electric cars, she also announced that those earning a taxable income of up to Rs. 5 lakh will get a complete tax rebate.

Additionally, the budget also emphasised on the importance of higher contribution from those who earn more. As a result, those earning Rs. 2­­–5 crore have to pay 3% higher surcharge, while those earning more than Rs. 5 crore have to pay 7% more as surcharge.

To counter the increase in out-go, you can invest in a Bajaj Finance Fixed Deposit, to increase your wealth over time.

Lower rate of interest on small savings schemes
For the July-September quarter, the RBI has lowered the interest rates offered by popular savings schemes such as PPF and NSC. While both these instruments will yield 7.9% interest instead of 8%, Sukanya Samriddhi Yojana will yield 8.4% interest instead of 8.5%. Similarly, an investment in the Senior Citizens Saving Scheme will yield 8.6% interest as opposed to 8.7%. In such a scenario, it makes sense to invest in an FD that offers a higher rate of interest.

Bajaj Finance Fixed Deposit offers an interest rate of 8.60% for new customers, while senior citizens get 8.95% interest. Moreover, on FD renewal, you can get an additional 0.10% interest.

Constantly declining a repo rate
In 2019, the RBI lowered the repo rate thrice, by a total of 75 basis points. Furthermore, experts are of the opinion that a rate cut is likely in the future as well as the nation’s monetary policy has transitioned from being neutral to being accommodative.

Are you wondering how this will impact your investments?

For starters, when the repo rate drops, financial institutions can borrow more affordably from the RBI, and loans become more inexpensive. However, financial institutions aren’t as reliant on deposits any longer, and hence the interest rate offered on deposits, falls. Before the repo rate is lowered further, it makes sense to lock in on the high interest rates offered by Bajaj Finance Fixed Deposit right now.

Graded exit load on early mutual fund exits
Investors typically use liquid funds to park money for a short duration, as this instrument allows you to withdraw the amount as and when you need to. However, recently the Securities and Exchange Board of India (SEBI), has introduced a graded exit load on early exists from liquid mutual fund schemes.

This cost takes away from the very purpose of a liquid mutual fund and so, it makes sense to opt for instruments such as overnight funds, or better yet, fixed deposits, as they often offer a better rate of return.

While fixed deposits aren’t very liquid either, issuers such as Bajaj Finance allow you to take a loan against your FD if the need arises. Moreover, you can invest for a tenor of 12 to 60 months as per your goals and liquidity needs. Apart from laddering FDs, you can opt for regular payouts to meet monthly, quarterly, bi-annual and annual liquidity requirements.

Incentivising NRI investor participation
To encourage greater NRI investments in Indian markets, the government has decided to combine the NRI Portfolio Investment Scheme Route with the Foreign Portfolio Investment Route.

The goal here is to ultimately make it easier for NRIs to invest in Indian equities. While you await this change, you can add a Bajaj Finance Fixed Deposit for NRIs to your portfolio in right away, to earn returns of up to 8.95% by investing as little as Rs. 25,000.

These economic conditions and policy changes are reasons enough to invest in a Bajaj Finance Fixed Deposit right away. You can start investing with just Rs. 25,000 and make your investments grow with a Bajaj Finance Fixed Deposit. You can also benefit from other features like multi-deposit facility, auto-renewals, FD with debit card and a hassle-free online paperless process.

Source: DIGPU

Disclaimer: This content is distributed by Digpu. No Forbes India journalist is involved in the creation of this content.