One of the most popular investment options in the financial market is the fixed deposit.
According to a financial report, more than 90% of Indian households have a fixed deposit. The FD is such a popular choice because it is a stable tool in which your initial deposit is safe and you can earn generous returns over your chosen tenor. This adaptable tool is ideal for all types of investors.
Let’s take a look at how this tool can help investors of all ages and risk tolerances.
- Young investors
Most fixed deposits have a small initial deposit amount making it more straightforward for younger investors who lack a sizeable corpus to enter the investment arena still. They help instil a habit of savings, and since this tool is not market movement linked, investors can be assured that their money is safe. Also, this is a perfect tool to offset risks and balance the investment portfolio. So young investors can set aside a safe fund with a fixed deposit with high FD rates.
- Mid-aged investors
It is ideal for middle-aged investors looking to diversify their portfolios and reduce the risks associated with investing in market-linked instruments. Because the interest rate is fixed throughout the tenor, this instrument is also useful for seamlessly achieving financial goals.
You can easily adjust your tenor and initial deposit amount to align it with your financial goals by calculating the amount you would receive at maturity. The corpus generated upon maturity can be used to fund your child’s wedding, higher education, and international travel. Aside from meeting objectives, this can also be used as a contingency fund, providing free cash flow when needed.
- Senior citizen investors
Risk appetite usually decreases as one gets older because investors are afraid of losing their hard-earned savings over time. In this case, investing in a low-risk, stable instrument such as a fixed deposit is the best bet. Because interest rates remain constant throughout the term, senior citizens can use the FD calculator to estimate their returns at maturity. Seniors can easily fund their monthly expenses by selecting a plan with regular payouts.
Among bank FDs, post office FDs, and NBFCs, the latter generally offer higher FD rates. Choose a tool like the Bajaj Finance Fixed Deposit if you want the security of a deposit as well as high FD rates.
- Attractive FD rates
Bajaj Finance FD offers investors interest rates of up to 7.75 percent per annum. It allows them to rapidly grow their savings. Senior citizens receive an additional rate benefit of up to 0.25 percent per year on deposits. Some special tenors have higher FD rates than others. The following table shows the applicable FD rates for senior citizens.
Special tenor FD rates
- Credible investment tool
CRISIL and ICRA, India’s leading credit rating agencies, have awarded Bajaj Finance the highest safety ratings. Investors can easily park their funds without fear of defaults or late payments.
- Loan against FD facility
With Bajaj Finance, you can easily obtain a loan against your FD with collateral of up to 75% of the FD value. This can provide you with the cash flow you require without requiring you to liquidate your investment in the middle. This facility can be used to obtain a free flow of cash during such emergency situations.
- 100 per cent paperless and online process
Investors can benefit from a contactless investment procedure and invest from the comfort of their homes thanks to the 100% end-to-end online process. You can book an FD in a matter of minutes by simply filling out the online FD form and providing the necessary information.
With all of the necessary information, anyone can now consider opening an FD with Bajaj Finance to begin their journey toward financial independence. These impressive features make the Bajaj Finance FD an excellent choice for investors seeking to add stability to their portfolios. All product details are available on the customer portal for my account.
Furthermore, investors can visit one of the country’s 1,000+ Bajaj Finance branches or invest online to start earning at a competitive FD rate right away!