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Investing in trying times: Why should you save with Bajaj Finance FD?


Investing in trying times: Why should you save with Bajaj Finance FD?
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The current global and domestic scenario has had a major impact on the equity market, which is witnessing high turbulence. In such times, investing in market-linked instruments can be risky, while offering negative returns. Thus, fixed-income instruments like Fixed Deposit have started gaining popularity.

However, the RBI has cut repo rates several times this year, to infuse more liquidity into the economy, during these times. These repo rate cuts have been followed by reduction in FD interest rates, by several issuers. These fixed deposit rates have been reduced so much that returns on deposits are now averaging from 3-4%. Fortunately, there are still issuers like Bajaj Finance Fixed Deposit offering lucrative interest rates of more than 7%, thereby providing a great balance of safety and attractive returns.

 To truly understand the value of investing here, take a look at present-day market conditions, and verdicts given by global agencies. Let’s see how investing in FD can enhance your portfolio with a detailed analysis on the present times.

 The current market scenario beckons a prudent approach

During these times of increasing volatilities, Sensex has been witnessing major swings in Intraday. Additionally, India’s fragile economy is suffering from a sustained credit slowdown, an uptick in unemployment, and the shadow bank debacle. Additionally, the fears of salary paycuts and loss of jobs is real, which is why there’s an increasing need for safer investment avenues to create a contingency fund.

By investing in a Bajaj Finance Fixed Deposit, you can set aside a sum, to cater to unforeseen expenses. You can withdraw prematurely from this FD after completion of a lock-in period of 3 months, or you can also avail a Loan against FD to fund emergencies. Thus, this can be a great choice for investors seeking a safe way to grow their savings. 

Fixed deposit can take your portfolio’s returns into the green

In these unprecedented times, investing in the equity markets can be very risky, especially if you’re looking for short-term investments. Even if you’re investing in the stock market for the long run, it doesn’t hurt to build a hedge for your portfolio. Bajaj Finance FD is a great contender for the task, as the returns on this deposit are independent of market fluctuations. Since your portfolio’s net return rate is the weighted average of each asset you have, you can allocate to FDs accordingly to mitigate risk.

With the Bajaj Finance Fixed Deposit, you get fixed deposit rates of up to 7.85%, and by allocating sufficiently to it you can ensure that your net rate of return remains healthy. The rates offered here are impressive because FD rates around the country have reduced significantly.

With Bajaj Finance, you can invest now to grow your wealth while combatting inflation. Here is a table indicating prospective returns, assuming a sum of Rs. 20 lakh is invested for a tenure of 60 months.

Customer type

Deposit amount

Tenure

Interest rate

Interest earned

Maturity amount

New customer

Rs. 20,00,000

60 months

7.60%

Rs. 8,84,638

Rs. 28,84,638

Existing customer

Rs. 20,00,000

60 months

7.70%

Rs. 8,98,068

Rs. 28,98,068

Senior citizen

Rs. 20,00,000

60 months

7.85%

Rs. 9,18,305

Rs. 29,18,305

You can determine the returns on your deposit easily, by using the FD interest rates calculator. This is a great tool for planning your investments in advance, so you can know the returns you can get, beforehand.

Competitive returns coupled with safety and convenience

With a company FD you enjoy lucrative gains, but the risk of capital loss is present. While you may be promised attractive returns, it is important to calculate the risks of defaults and delays. The way to ensure safety is to look for stability ratings, as issued by agencies like ICRA, CRISIL and CARE. In the past, agencies have downgraded deposit programmes and so it is impressive is that amid the shadow banking crisis, Bajaj Finance FD continued to hold AAA credentials. It carries ICRA’s MAAA rating and CRISIL’s FAAA rating, both of which are the highest in their respective categories. With competitive interest rate and impressive ratings backing your returns, you can be sure of timely payouts.

Additionally, customers can now invest in a Bajaj Finance online FD from the comfort of their homes, as this end-to-end online FD process is completely paperless. Within minutes, you can now book your FD online, without having to step out.

Trust of investors in Bajaj Finance Fixed Deposit

Apart from ratings that attempt to peer into a company’s financials, a telling indicator of the worth of a company FD is whether it has a sizeable customer base. Bajaj Finance has a strong base of 2,35,000 unique FD customers who have contributed towards an impressive deposit book of more than 20,000 crores. In fact, senior citizens form 35% of this customer base and have contributed towards nearly 40% of this deposit book.  As you can see the deposit book is significantly big and coupled with the large senior citizen base, these figures speak to the reliability of the Bajaj Finance FD.

Additionally, the interest rates on government savings schemes were slashed for the first quarter of the year, and are touted to be slashed further, which may reduce PPF interest rates to the lowest in 43 years. With other FD issuers offering rates lower than savings accounts, investing in a Bajaj Finance FD is one of the smartest choices, today.


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