Why Bajaj Finance FD can be the best investment option this Diwali
Over the next few days, Diwali will be celebrated across the country with lights, gifts and joyous reflections about the future. With optimism in the air, people would want to make the most out of this auspicious occasion by investing in various financial instruments, with hopes to see a handsome return in the years to come. For some, it might be their first foray into the world of financial investments. Whatever your financial situation may be, the festive season is the most opportune time to take a step towards savings and growing your personal finances.
So where should you invest your money? If you are looking to reapgreat returns that are not affected by market volatilities, a fixed deposit (FD) is an ideal financial instrument that offers both - safety and capital appreciation. FD is a completely risk-free investment that promises guaranteed returns, two aspects that are essential to building wealth. But with a plethora of financial institutions offering fixed deposit schemes at varying rates and offers, which one should you choose?
Fixed Deposit Trends
2020 has not been a great year for investors, especially when you consider the post lockdown market turmoil. And if the recent reduction in repo rates and measures taken by the government to spur growth by injecting liquidity are any indication, this trend is likely to move forward till next year. In spite of this downward trend, fixed deposit has managed to remain an attractive investment option. There are a number of FD issuers that have maintained high interest rates. Among them, Bajaj Finance Ltd. has managed to keep fixed deposit interest rates in 2020 as high as 6.85%. This is remarkable when you compare the interest rates found with other investment vehicles today.
Why Bajaj Finance FD?
Apart from offering some of the highest FD interest rates in India, there are many other benefits that FD from Bajaj Finance can offer. But before we discuss these benefits, let’s compare Bajaj Finance FD interest rates to interest rates offered by other bank FDs for tenures of 3 years or more.
Bajaj Finance FD | Bank FD (Average) | ||
Regular Rate (Online) | Senior Citizens | Regular Rate | Senior Citizens |
6.70% | 6.85% | 5% | 6% |
This table clearly puts Bajaj Finance Ltd. ahead of bank FDs, when it comes to interest rates offered on its various fixed deposit schemes.
Attractive FD rates
Another quality that makes Bajaj Finance online FD schemes an attractive investment option is the higher returns offered over other low-risk investment instruments like recurring deposits (RDs) and PPFs. What’s more, fixed deposit offers considerably more flexibility when compared to other low-risk investment options. This essentially means that you get the best of both worlds - higher returns on your investment, and the flexibility to choose when you want your money. For better understanding of the interest accrued from these financial instruments, let's look at the example, below.
As you can see, Bajaj Finance FD offers better returns and more flexibility, as compared to other avenues. Even though PPF rates are higher at the moment, there may be a likelihood of these rates being reduced later. This may impact your deposit, as the returns are not fixed throughout the tenure. On the other hand, FD returns are consistent throughout the tenure.
You can also plan your investments in advance, with Bajaj Finance Fixed Deposit calculator that enables you to know your maturity amount and returns, even before you invest.
Customer Trust
Over the years, Bajaj Finance Ltd. has built an image of trust and reliability among its strong customer base. At present, the company boasts a staggering 2,35,925 unique fixed deposit customers, with deposits totalling over Rs. 20,800 Crore. The constant focus on customer satisfaction, coupled with great returns offered on various fixed deposit schemes has resulted in Bajaj Finance Ltd. becoming a household name among middle and lower-income households. This is especially true for senior citizens that account to 92,712 customers – a staggering 1/3rd of all fixed deposit customers.
Highest Credibility Ratings
Knowing your money is safe for the duration of the deposit period is critical for creating a healthy investment portfolio. Customers can check for credit ratings as an indication of the reliability of a financial institution. These ratings are given by reputed rating agencies CRISIL and ICRA, and provide insights into how safe your invested capital is. At present, Bajaj Finance FD schemes come with an FAAA (stable) rating by CRISIL, and MAAA (stable) rating by ICRA. These are among the highest credibility ratings awarded by rating agencies to financial institutions. So, what does this mean to you? For one, you are assured a safe investment environment. Additionally, you are guaranteed returns on-time, while the institution boasts of a zero-default experience.
Special Focus on Senior Citizens
Bajaj Finance FD schemes are the perfect choice for senior citizens. Not only do senior customers get an attractive interest rate, but they are also guaranteed returns without compromising on safety. Senior citizens also have the flexibility of choosing their interest pay-out terms. Depending on monetary requirements, seniors can opt for monthly, quarterly, bi-annual or annual interest pay-out plans. As mentioned earlier, Bajaj Finance Ltd. has an ever-growing number of senior citizens who enjoy the high-interest rates and assured returns.
These benefits, coupled with flexible investment terms, such as a minimum lump-sum amount of Rs. 25,000 to open an FD account, along with the safety of your investment make Bajaj Finance FD the best investment option this festive season.
Disclaimer: This content is distributed by Bajaj Finance Ltd. No TNIE Group journalist is involved in the creation of this content.