INSUBCONTINENT EXCLUSIVE:
This is because the returns on FDs are not linked to the stock markets
This results in assured returns as promised by the issuer at the time of starting the investment
However, the return and the safety of the investment depend on the rate of interest and credibility that an issuer offers.To benefit from
Here, you can earn interest up to 8.70 per cent depending on your customer profile and chosen investment tenor
Besides, Bajaj Finance's fixed deposit has a high stability rating of "FAAA" by CRISIL and "MAAA" by ICRA, both of which indicate that
your investment is absolutely safe
Furthermore, the high credit ratings also mean that you will receive your returns on time.However, it's important to note that FD interest
rates depend on the prevailing repo rate
In fact, there is a direct relationship between the two
Ideally, a hike in repo rate means a rise in the FD rates and vice versa
Currently, after four rate cuts this year, the repo rate stands at 5.40 per cent
In such a scenario, you may wonder if now is the right time to invest in an FD
The answer is that you certainly must
Here's why.RBI has maintained an "accommodative" stanceBesides bringing down the repo rate by 35 bps, the RBI has also changed its
monetary stance to "accommodative" from "neutral" in order to induce economic recovery and aid in its growth
This means that the chances of future rate cuts are lower
However, there is still scope for a cut of 50-100 bps owing to inflation.Given the volatility, now is the right time to park your funds in a
Besides keeping your money safe and away from fluctuations, your investment will also continue to earn the best interest rates that you lock
In contrast, if the repo rate further dips, you will have to accept lower returns as per the FD rates that are prevalent then.Thus,
investing in an FD right away is prudent rather than waiting for an increase in rates, which may or may not take place
Take a look at what your earnings will amount to when you invest in a Bajaj Finance FD
As Bajaj Finance offers different interest rates depending on your investor profile, the following tables outline your earnings when you
invest Rs 10 lakh for five years as a new investor, an existing customer or a senior citizen investor.New customerAmount (in Rs.)Tenor (in
years)Interest rate (in %)Interest (in Rs.)Maturity amount (in Rs.)10,00,00058.354,93,29114,93,291Existing customerAmount (in Rs.)Tenor (in
years)Interest rate (in %)Interest (in Rs.)Maturity amount (in Rs.)10,00,00058.455,00,19515,00,195Senior citizenAmount (in Rs.)Tenor (in
years)Interest rate (in %)Interest (in Rs.)Maturity amount (in Rs.)10,00,00058.75,17,56615,17,566Small saving schemes are offering a lower
interest rateThe Centre reviews the interest rates on small saving schemes periodically, which means that they are subject to change every
These rates are aligned to the interest on government bonds having similar maturities
Following the downward trend of the interest on 10-year government bonds, there has been a drop in the interest rates applicable on small
savings instruments as well.For instance, the rate of interest on Public Provident Fund (PPF) has been reduced to 7.9 per cent from 8 per
cent and the interest rate for the five-year National Savings Certificate (NSC) now stands at 7.9 per cent
Besides, it is likely the interest rates on small saving schemes are further going to fall by 10-20 bps in the coming quarter
Since the interest rate regime doesn't seem to be getting better, your best move is to start investing in an FD right away.FDs offer
value-added features in addition to guaranteed returnsBesides offering you an attractive interest rate, an FD also has other features that
are beneficial for you as an investor
For instance, to make investment convenient, Bajaj Finance offers a multi-deposit facility that allows you to invest in up to five FDs using
Moreover, you can select different amounts, tenors and payout frequencies for each unique FD
What's more, in an emergency, you can make a premature withdrawal from a single FD instead of liquidating all your investments
This means that you can access liquidity while still enjoying the benefits of investing over a long tenor.Apart from this, the issuer also
allows you to choose the auto-renewal facility at the time of investing
Through this facility, you give the issuer a standing instruction to automatically renew your FD on maturity
This way, you don't have to undergo the hassle of submitting additional paperwork to reinvest your proceeds
Also, when you reinvest your FD, you earn an additional interest of 0.10 per cent.Keeping these reasons in mind, invest your hard-earned
money in an FD now and secure your finances for the future
Make the most of the facilities that Bajaj Finance has to offer by utilising the FDs that have a tenor ranging from 12 to 60
months.Disclaimer: This is an advertorial and TheIndianSubcontinent is not responsible for the accuracy of the content.Get Breaking news,
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