Home >Brand Post >Systematic Deposit Plan: A smart investment tool for millennials

Millennials have a different outlook towards savings and investments, it differs vastly from the previous generations. This is primarily due to their spending habits. While it’s tempting to spend your paycheck, it’s also extremely important to imbibe a habit of saving and investing your surplus income to facilitate the growth of wealth. This corpus can fund your financial goals or help save the day during unforeseen emergencies.

There are multiple financial tools to help you plan your investments. A systematic Investment Plan (SIP) is a great option as you can make specific investments at periodic intervals. But, with the dynamic market movements and uncertainties, there’s always a risk of losing out on your returns. To risk proof your savings you need to choose fixed-income instruments like a fixed deposit, offering assured returns. Bajaj Finance offers stable investment options with attractive assured returns.

The Systematic Deposit Plan (SDP) offered by Bajaj Finance is an industry-first monthly savings plan. SDP is a unique savings instrument that combines some of the best features of a Fixed Deposit with the convenience of a Systematic Investment Plan (SIP). You can start investing with just Rs. 5000 per month. SDP offers two variants - the Single Maturity Scheme (SMS) and the Monthly Maturity Scheme (MMS).

Read on to understand more about the Systematic Deposit Plan:

 Flexible payout option

The payout frequency is the key area of difference between the Single Maturity Scheme and the Monthly Maturity Scheme. With the single maturity scheme, you receive the lump sum amount of all your deposits on a single day. The maturity date of each subsequent deposit is adjusted according to your chosen tenor, which means the tenor for individual deposits gradually reduces for each subsequent deposit. The aim of this plan is to generate a lump sum corpus at maturity, making this an ideal option if you are looking to achieve a short-term financial goal like purchasing a car, etc.

In the Monthly Maturity Scheme, the tenor chosen applies to each deposit you make. Every deposit matures on a different date as per the chosen tenor and payouts relating to that deposit are disbursed on the date of maturity. This helps you get multiple monthly payouts while offering adequate liquidity every month. The objective of the scheme is to generate monthly payouts as per the maturity date of each deposit. If you foresee the need for additional monthly income in the near future like paying EMIs, choosing this variant would be ideal.

 Number of deposits

With the Single Maturity Scheme, you can make between 6 and 47 deposits and with the Monthly Maturity Scheme, you can choose to make between 6 and 48 deposits.

 Range of tenor

With the Single Maturity Scheme, you can opt for a tenor between 19 and 60 months, and with the Monthly Maturity Scheme, you can choose a tenor between 12 and 60 months. To yield higher returns from your investments consider choosing longer tenors. Bajaj Finance is offering attractive FD interest rates up to 6.75%, so you can choose to grow your savings steadily.

 Renewal facility

The renewal facility is available only for the Monthly Maturity Scheme and comes with an additional rate benefit of 0.10%. You can start investing from the comfort of your home with no documentation hassles. Growing your monthly savings is now easier than ever, with the end-to-end online SDP process.

Bajaj Finance is accredited with the highest safety ratings of FAAA by CRISIL and MAAA by ICRA, making it a haven for investing your savings.

With Bajaj Finance you can choose to invest in a Fixed Deposit for stable savings or a Systematic Deposit Plan for monthly savings. As a savvy young investor armed with the required knowledge, you can now consider investing in a Bajaj Finance online FD based on your liquidity requirements and financial goals.

Disclaimer: This content is distributed by Bajaj Finserv. No HT Group journalist is involved in the creation of this content.

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