A term deposit has always been a popular investment option among both conservative and aggressive investors as it gives guaranteed returns and acts as a financial cushion. Now, while investing in term deposits is fairly an easy process, there are certain parameters you should keep in mind:
Compare the Interest Rates
Term deposit interest rates vary across banks, government schemes and other financial institutions. In the past few months, the interest rates on banks, post office FDs and other government saving schemes have shown a downward interest rate trend in the past quarters. However, company FD offered by Bajaj Finance still offer a high interest rate up to 7.35%, which is among the best across all term deposit issuers in 2020.
It is always advisable to compare the returns on term deposits using a reliable online FD calculator such as that available on Bajaj Finance website. You can also use the post office fixed deposit calculator for calculating post office FD rates. The comparison will give you exact interest payout and investment value to help you make the right term deposit investment decision.
Choose Safety with High Returns
Along with high returns, the term deposit should also ensure the safety of your investment. There are very few FD issuers that offer the best of both worlds – returns and safety. For instance, Bajaj Finance term deposit not only offers returns exceeding 7% but also accredited for the highest stability ratings by ICRA and CRISIL. This makes it the safest term deposit for investors.
Check for Online Access
You should be able to access and operate the term deposit online anytime from anywhere in the world. You can open Bajaj Finance term deposit online in a few minutes on its website through a simple, quick and paperless process. There are also other benefits associated with Bajaj Finance online FD. You can earn an additional interest rate of 0.10% over and above its base rate if you book online FD with Bajaj Finance. You can track the growth of your investment online. You can even apply for an online loan up to 75% of the term deposit value of Bajaj Finance.
Value-Added Features
A good term deposit is one which enables you to maximize the returns through different features. In the case of Bajaj Finance, you can grow your returns in two ways:
Multi-Deposit Facility: This feature allows you to invest in multiple FDs of smaller amounts with varying tenor and interest payment frequencies instead of blocking lumpsum money for a fixed period. As and when you face liquidity crunch or need money for short-term goals, you can break a single deposit and let the other deposits remain invested to earn returns.
Systematic Deposit Plan (SDP):
It is a common trend of depositing a small part of your income in a savings account every month. However, you can even invest that small amount in Systematic Deposit Plan from Bajaj Finance. This plan offers the flexibility of choosing the number of monthly deposits and the tenor for each deposit.
You can make 6 to 48 small, standalone deposits every month for 12 to 60 months tenor under the Monthly Maturity Scheme of SDP and between 6 to 36 deposits under the Single Maturity Scheme of SDP. The interest rate prevailing on the date of making the deposit will apply to that particular deposit. The longer you stay invested, the more returns you can expect with the power of compounding.
Re-investing your returns
You can invest in multiple FD schemes using the multi-deposit feature and club their returns in a cumulative FD of a longer tenor. This will help you to compound your returns and you will be able to accumulate a big corpus until retirement.
Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory.