Fixed Deposits or Term Deposits are considered to be one of the safest investment instruments as they are free of any market risks. The only close competitor to such instruments is a savings account. However, there is one huge interest between both – the interest rate charged in Fixed Deposits is a lot more than the savings account. This puts the investor on an advantage of almost doubling their money which they have earned by slogging days and nights.
Currently, the interest rate charged on a savings account is 3.5%, whereas, it’s almost double in the case of FDs, i.e. 6.75%. The best part is you don’t need to have a huge amount of money saved with you. You can start your FD with an amount as low as Rs. 25000.
Moreover, when you open Fixed Deposits with the NBFCs like Bajaj Finance, you get an interest rate of 8.75%. You can choose a tenor of your preference between Cumulative and Non-Cumulative FDs. Apart from that, if senior citizens open an FD, they are eligible for an additional Fixed Deposit (FD) interest rate of 0.35% above the base rate.
Why Fixed Deposit is a Good Option?
It is a common dilemma for every budding investor that where should he/she invest so that he can get assured returns. While there are many investment options available, Fixed Deposits opened in NBFCs have an advantage of generating safe and risk-free returns. Moreover, they help you save on tax liabilities, as FDs have an amount up to 1.5 Lakhs fully exempted from tax.
- NBFCs operate on the credible ratings of ICRA and CRISIL which make it a worthy option making all your investments risk-free.
- You also have the option to bifurcate your earnings and invest it in different FDs. Or you can also select the option for sweep-in FD. A sweep-in FD is also called a 2-in-1 account which has the function of automatically converting a certain amount to FD. In such cases, the savings account has a threshold limit, after which the remaining amount gets converted into FD. For example, if you have 2 Lakhs in your savings account and the threshold limit is Rs. 20000. The remaining 1.8 Lakhs would be automatically converted to an FD. On the other hand, if savings account has less amount than the threshold limit, the required money can be transferred back to your savings account from your FD.
- The threshold limit can vary between Rs. 25000 and 1 Lakh, while some institutions can offer you the option to set your own limit. It is always advisable to set a lower limit to earn higher returns on interest. Some institutions also have a minimum average balance limit, which means your account must have a minimum balance in any circumstance. This limit can range from Rs. 1000 to Rs. 10000.
- You also have the option to open a tax-saving FD which has a lock-in period of five years. It means you cannot withdraw money from it or break it before the tenor ends.
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Open an FD with Bajaj Finance
NBFCs offer you the benefits of opening an FD with a flexible tenor between 12 to 60 months. You can open an FD with an amount as low as Rs. 25000. You can also divide your investment by opening multiple FDs to keep getting higher interest rates from 8.75% – 9.10%. There is a special tenor scheme of 15 months in which you can avail an additional 0.25% over the base rate. You can easily calculate how much returns you would be able to generate on the amount invested, by using FD calculator on our website. The application process is easy and there is minimal documentation.