Why now is the right time to invest in Bajaj Finance FD4 min read . Updated: 04 Mar 2020, 11:21 AM IST
Being the only Indian NBFC to have a credit rating of ‘BBB-’ from S&P Global, Bajaj Finance assures the safety of your investment.
A traditionally popular investment avenue, the fixed deposit continues to prove its mettle even today, guaranteeing generous returns in an underperforming economy. In a move to stop the decrease in credit growth, which now stands at a low 7%, the Reserve Bank of India has announced long-term repo operations (LTRO). With this instrument, the RBI aims to lend up to Rs.1 trillion to banks at the policy repo rate of 5.15% for a period of one and three years. While this will boost borrowing, banks are likely to reduce the interest rate of deposits. In addition, the returns offered by small saving schemes like PPF and NSC may also reduce post March 2020.
Rising inflation as well as experts warning investors to be careful of defaults in the FD sphere, especially when it comes to small finance banks, should encourage you to seek returns that both beat inflation and mitigate risk. This makes it an opportune time to invest in Fixed Deposit offering high returns with trusted issuers like Bajaj Finance. Being the only Indian NBFC to have a credit rating of ‘BBB-’ from S&P Global, Bajaj Finance assures the safety of your investment. Moreover, even in such times, Bajaj Finance offers an interest rate up to 8.35%.
Read on to know why you should invest in a Bajaj Finance Fixed Deposit now.
Stable returns in volatile conditions
With the overall economic slowdown, global trade war and the general loss of the investor’s trust, the current market conditions aren’t all that inviting. However, even in such conditions, Bajaj Finance ensures generous returns that will help you meet your long- and short-term financial goals while combating inflation.
Here, senior citizen investors get handsome FD interest rates of up to 8.35%, while banks across the nation slash rates to new lows. As a new customer, you can earn up to 8.10% interest, while as an existing customer, you can earn up to 8.20% interest on your investment. Remember that you avail these returns only on choosing a tenure of more than 3 years and opting for payout on maturity. This rate of return is also encouraging keeping in mind that the RBI projects that CPI inflation rate will ease up to 3.2% by Q3 2020-21. This means investing now and earning nearly 5% over the projected CPI inflation rate will hold immense value for investors.
To get a better idea of the interest payout and maturity amount earned by different customer profiles on investing Rs.20 lakh for a tenure of 48 months, see the table below.
Diversify to avoid market-related risks
Adding this FD to your portfolio ensures that even in volatile and underwhelming market conditions, you earn generous returns. This is especially pertinent given that LTRO is already in effect and leading banks have dropped their FD interest rates to as low as 5.50%. Further, as this an NBFC FD that has the highest stability ratings of FAAA and MAAA from CRISIL and ICRA respectively, the Bajaj Finance FD assures that your investments are in safe hands.
Align your financial goals with your FD returns
While your other investments may not yield the expected returns due to the economic slowdown, FDs become the perfect medium to finance both your long-term and short-term goals. However, keep in mind that even though this FD is virtually risk-free, it is susceptible to rate cuts when the repo rate changes, which are expected in June 2020. So, investing in a Bajaj Finance FD now is crucial to lock in a corpus at the prevailing FD interest rates.
What’s more, you can align your investment with your financial goals and still combat inflation. With help of the FD Calculator, you can identify the most efficient tenure and know exactly how much to expect at maturity. However, you should note that long-tenure investments result in higher returns and are generally the better option for wealth generation.
The table below displays the interest payout a new customer earns from investing Rs.30 lakh in a Bajaj Finance FD over different tenures.
Make smaller investments with the Systematic Deposit Plan
Given the unearthing of the PMC bank fraud causing losses in crores and the news of AAA-rated papers defaulting, you may be reluctant to invest all your savings at once. However, with the Systematic Deposit Plan, you don’t have to commit a large lump sum to grow your wealth. Here, you can make small monthly deposits of just Rs. 5,000 per month, at the prevailing interest rate. This helps you put money aside in an instrument that combats inflation and allows you build wealth slowly and steadily. With every deposit counted as a new FD, the tenure you chose for the first deposit will apply to all future deposits under this feature, which allows you to choose between 6 and 48 deposits.
With such benefits at your fingertips, now is the time to start working towards profitable returns. Book a Bajaj Finance online FD by filling out a simple form and am executive will get in touch with you at the earliest.
Disclaimer: This content is distributed by Bajaj Finserv. No HT Group journalist is involved in the creation of this content.