Fixed Deposits have always been rather popular as they’re an institutionalised investment option. The reason being, they offer safety while also promising decent returns. But, while a majority of the populous knows how to open a bank account; there still exists a certain level of ambiguity that surrounds the process of investing in a Fixed Deposit (FD).
You can make an FD with Post office saving banks, commercial banks and non-banking financial institutions (NBFCs). Therefore, ascertaining which scheme to choose can be a tedious task. But not if you look at the rates and make a decision.
THE AVERAGE FD RATE IN INDIA IS 5.5%. As of July 2021, the average fixed deposit interest rates offered for tenors ranging from 7 days to 10 years, for deposits below Rs. 2 crores of major financial institutions, like YES Bank, is 6%. But for NBFCs, the rates are a tad bit higher and hence more lucrative. At Bajaj Finance itself the rates range from 5.65% to 6.75%.
Hence, FDs with NBFCs as investment options are always a better option due to the higher FD rates. Here are some key details before the features of fixed deposit plans provided to customers at Bajaj:
- Tenor: The minimum tenor is 1 year and maximum is 5 years for an FD at Bajaj
- Interest Rates: They range from 5.65% to 6.75%
- Deposit: A minimum deposit of Rs 25,000 only is required
- Online Payment Options: Both, Unique Payment Interface (UPI) and Net-banking options are available
- Unique Selling Point: The entire process from end to end is paperless, thus it can be done from the safety of your home
Process of opening the FDs
There are obviously 2 ways of going about the investment process but the difference at Bajaj is that both work at maximum efficiency:
Offline: The offline process involves downloading and printing forms from the websites or procure them at branches in order to physically submit them to an executive. This is opted for, by people that prefer personal interaction for reassurance and aren’t adept with online procedures in general.
Online: At Bajaj, the policy has always been to stay up to date with the need of the hour and to provide the most convenient service to customers. Their application prevents you the hassle of page long documents and even longer queues. It allows you to browse the best rates from the safety of your homes while completing the entire process digitally. In fact, even the lucrative feature of taking a loan against the FD is now available online.
The main concern of a depositor when it comes to an FD is, what if he/she has to break it. Therefore, at Bajaj depositors are allowed to take a loan against the FD (post the initial lock-in period of 3 months) when they need to make emergency withdrawals. The only condition is that the loan value cannot exceed 75% of the FD value.
Additionally, there are a few benefits that make Bajaj Finance FD the best investment option for you. These include:
High Interest Rates: At Bajaj Finance, you receive a very lucrative interest rate of 6.50% which increases to 6.75% if you are a Senior Citizen (60 years of age or more).
Special offers to Senior Citizens: Bajaj FDs value and understand their senior citizen account holders. Thus, along with a higher interest rate they can also avail periodic pay-outs to fund general expenses that arise at their age.
Benefits to Pravasi Bhartiyas (NRIs): For any Non-Residential Indians (NRIs) or other people with similar categories, with an NRO account, tenors between 12 and 36 months are provided. The interest rates are the same for them including the additional benefits given to Senior Citizens.
High Credibility and Stability: Bajaj Finance is a safe option as it has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe.
Flexible Time Frames: By having a wide range of tenors between 12 and 60 months, you can plan your liquidity and generate higher cash inflows as per your requirements
Smaller Minimum Deposit: With a cap of only Rs 25,000 you can start investing in FDs, at an early stage without being forced to accumulate a larger set of funds.
Auto-renewal: While having automatic and unconsented renewals is scary, Bajaj gives you the option to opt for an auto-renewal to save you the time and effort of manually filling the renewal forms repeatedly.
Hence, this is how you can invest in an FD and now you also know one of the best investment options for the same.