Fixed deposits promise guaranteed returns as well as a high rate of interest. They also have excellent stability and credibility ratings from national as well as international rating agencies.
As a parent, it’s likely that your top priority is to secure your child’s future by making the necessary financial arrangements. After all, this gives you the flexibility to meet their every need, be it small or big.
Moreover, with education costs in India experiencing an annual inflation of around 10% to 12%, it may soon become difficult to comfortably pay for education expenses out of your pocket. Additionally, to nurture your child’s athletic or musical inclinations, you may wish to spend on equipment and training too. These are just two of the many reasons why financial planning for your child is a necessity, not a luxury.
Given the myriad costs that you’re likely to encounter, the best option is to invest when your child is young, so that you have the necessary finance to provide for every requirement. A particularly lucrative investment is the Bajaj Finance Fixed Deposit, as it promises guaranteed returns as well as a high rate of interest. It also has excellent stability and credibility ratings from national as well as international rating agencies, making it a viable investment for even the most cautious investor.
To know how the Bajaj Finance Fixed Deposit can help you financially secure your child’s future, read on.
Invest in a long-term FD for education expenses
As you may have noticed, education expenses rise every year. This cost further increases if you want your child to study overseas. So, to prepare for education expenses, it’s best to invest in a long-term FD that offers substantial returns owing to compounding interest. Assuming that you invest Rs.5 lakh for 5 years right now, take a look at the corpus you can accumulate for this purpose.
Take advantage of the multi-deposit facility to tackle yearly expenses with ease
The multi-deposit facility is a great way to invest in several FDs at once. Using just one cheque, you can invest in multiple FDs and have them mature at different tenors. This can give you the liquidity you need for yearly expenses, be it hobbies or extra-curricular activities. Further, laddering your investment eliminates the need to make a premature withdrawal, thereby preserving your returns.
Opt for the auto-renewal feature to build a sizeable amount
Using the Bajaj Finance auto-renewal feature is a great way to accumulate wealth for your child. You can opt in for it at the time of investment and upon maturity, your money will be automatically reinvested for a tenure of your choice. What’s more, you benefit from an extra 0.10% interest that increases your returns further. To understand the difference this can make to your returns, take a look at what happens to the aforementioned FDs when they are renewed.
Plan effectively using the FD calculator
Now that you’re aware of ways in which a Bajaj Finance FD helps your secure your child’s future, take the time to plan your investment. You can use the FD calculator to accurately compute your earnings before you invest. This way, you can stay one step ahead and ensure that you never fall short of money for your child’s needs.
In this manner, by using FDs, you can comfortably tackle costs that you will come across when raising your child. Further, if you have enough finance for all of your child’s current needs, consider investing in an FD nonetheless. Creating a security net for your children to fall back on ensures that they are able to follow their dreams without compromising or worrying about financial security.
If you wish to get started, all you have to is book an appointment by filling the online application form. An authorised representative will contact you so you can invest immediately.
Disclaimer: This content has been distributed by Bajaj Finserv. No HT Group journalist is involved in the creation of this content.