Fixed Deposits (FDs) are a safe and secure investment option that can help you grow your savings at an inflation beating pace.
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They are one of the safest investment options available in India, with guaranteed returns. In this article, we will explore what fixed deposits are, how they work, the different types of fixed deposits, factors to consider when choosing a fixed deposit, and how to open a fixed deposit with Bajaj Finance. We will also discuss how Bajaj Finance Fixed Deposits can help grow your savings.
What are Fixed Deposits (FDs)?
Fixed Deposits are a type of investment instrument that allows individuals to invest their money for a fixed period and earn a predetermined rate of interest on their investment. Fixed Deposits are considered to be a safe investment option because they offer guaranteed returns and are not affected by market fluctuations.
How FDs Work?
When an individual invests in a fixed deposit, they deposit a lumpsum amount with a bank or a financial institution for a predetermined period. The financial institution offers a fixed rate of interest based on the tenure of the deposit and type of the customer.
Types of Fixed Deposits
Fixed Deposits (FDs) come in various types, each tailored to meet specific financial objectives. Understanding these types helps investors to choose the most suitable option based on their needs. Here are 6 common types of Fixed Deposits:
Standard FDsStandard FDs are the simplest. Investors deposit a lumpsum amount for a predetermined tenure and receive fixed interest at regular intervals or upon maturity. These are ideal for individuals seeking stability and predictable returns.
Tax-saving FDsTax-saving FDs, as the name suggests, offer tax benefits under Section 80C of the Income Tax Act. Investors can claim deductions on the principal amount invested, up to a specified limit. However, these FDs come with a lock-in period, restricting premature withdrawals.
Cumulative FDsIn Cumulative FDs, interest is compounded periodically but paid out only at maturity. These FDs are suitable for those aiming for long-term growth, as the interest compounds on both the principal amount and the previously earned interest.
Non-cumulative FDsContrary to cumulative FDs, non-cumulative FDs provide regular interest payouts, typically on a monthly, quarterly, half-yearly or yearly basis. This type is beneficial for individuals seeking a steady income stream.
Senior Citizen’s FDDesigned specifically for senior citizens, these FDs generally offer higher interest rates. The tenures and interest payment frequencies are flexible, catering to their financial needs.
Factors to consider when choosing a Fixed Deposit
Interest rates: The rate of interest offered by a financial institution is one of the essential factors to consider when choosing a Fixed Deposit.
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Tenure: Tenure of the deposit is also a crucial factor to consider when choosing a Fixed Deposit. Longer tenures typically offer higher interest rates.
Minimum deposit amount: Different non-banking financial institutions or banks may have different specific requirements for the minimum deposit amount needed to open a fixed deposit account.
Penalty on premature withdrawal: Financial institutions may levy a penalty for premature withdrawal of Fixed Deposits. Investors should check it before booking an FD.
Bajaj Finance Fixed Deposit
Bajaj Finance fixed deposits offer attractive interest rates that can help you grow savings at a fast pace. Bajaj Finance offers FDs with interest rates of up to 8.60% p.a. They also offer flexible tenures ranging from 12 to 60 months, which allow investors to choose the duration of their investment as per their individual financial goals and requirements.
Bajaj Finance fixed deposits also come with a range of features such as an easy-to-use online platform, flexible interest payout options, and auto-renewal of FDs, making them a convenient and hassle-free investment option.
In addition to offering attractive interest rates, Bajaj Finance fixed deposits are AAA/STABLE rated from financial agencies like CRISIL and ICRA. This makes Bajaj Finance fixed deposits a popular choice amongst investors looking for higher returns with guaranteed safety and stability.
How to open an fixed deposit with Bajaj Finance
Visit Bajaj Finserv FD page and click “Open FD.”
Enter your mobile number, verify OTP.
Specify investment amount, tenure, and payout frequency. Provide PAN and date of birth.
Complete KYC: Confirm or update details for existing customers; new customers complete KYC with Aadhar card.
A declaration will be displayed. Review and agree to the declaration. Fill your bank details to proceed.
Complete your investment using NetBanking/ UPI or NEFT/RTGS.
Documents required to open a fixed deposit with Bajaj Finance
PAN card
Any KYC document (Aadhaar card/ Passport/ Divining/license/Voter ID)
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Conclusion
In conclusion, fixed deposits are a reliable and safe investment option that provides a guaranteed return on investment. Choosing the right fixed deposit involves considering the interest rates, tenure, minimum deposit amount, and penalty for premature withdrawal. Bajaj Finance Fixed Deposits offer attractive interest rates, flexible tenures, and a range of convenient features, making them an ideal choice for investors seeking higher returns with safety and stability. With Bajaj Finance Fixed Deposits, you can make your savings grow at an inflation beating pace. Start investing now!
