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Investment Types & Differences

Fixed Deposit Flexibility: How do different investments get different results?

In the world of savings, Fixed Deposit hold a special place of importance. This is because they’re not only safe and secure, but also enable you to calculate your returns on a certain amount, down to the last digit, before you invest.

With FD Calculator, you can evaluate the amount of deposit that needs to be made, so you can gain a particular amount. Bajaj Finance offers its customers a tool on the website, to help ascertain the returns they can make, with the amount they are investing.

Relationship Between Deposits and Returns

While most investments are seen as unstable, Fixed Deposits look more attractive because everyone stands to benefit from them. FDs make a great place for beginners to practice investment and savings.

However, just because it is a playing field for beginners, doesn't mean the regulars and the experts can’t stand to make profit. Hence, it makes more sense to ladder your investments.

Investment Details

FD by Bajaj Finance enable you to be in control of your investments. The higher your investment amount, the greater are your returns. However, that doesn’t mean that you cannot invest a small amount in FDs. Bajaj Finance FD schemes enable you to invest in amounts as low as Rs. 25,000.

Interest rates for most FDs range between 4 to 8%. One of the highest interest rates in the market today is at 8.35%, offered by Bajaj Finance, which can go up to 8.70% for senior citizens.

Here’s a breakdown of how you stand to benefit from them:

INVESTMENT AMOUNT TENOR MATURITY AMOUNT CUMULATIVE INTEREST EARNED
25,000 Rs. 12 Months Rs. 27,000 Rs. 2000
25,000 Rs. 24 Months Rs. 29,187 Rs. 4,187

Here you see how the same amount, left for double the tenor, yields more than double the interest earned. Now, the quickest way to increase your interest earned, is by increasing your amount of investment. This way you save on time as well. If you decide to invest for a longer tenor, you’re sure to get huge sums as returns.

Assuming you started an investment of Rs. 1 Lakh, let’s look at how that would factor out:


INVESTMENT AMOUNT TENOR RETURNS CUMULATIVE INTEREST EARNED
1,00,000 12 Months Rs. 1,08,000 Rs. 8,000
1,00,000 24 Months Rs. 1,16,748 Rs. 16,748
1,00,000 36 Months Rs. 1,27,200 Rs. 27,200

You can see how the interest earned is gradually increased with the tenor. When compared to an investment of Rs. 25,000, your returns increase substantially. This is especially improved as the sums of investment increase.

Cumulative vs Non-Cumulative Returns

Everyone knows that when investing in an FD, a cumulative return yields a higher amount. The simple difference between the two is that cumulative is taking your interest amount at the end of the tenor, and non-cumulative means taking your interest amount in either monthly, quarterly, half-yearly, or yearly payments.

Here’s a table that helps you understand this better. If you break your interest payouts into monthly, quarterly, half yearly, or yearly, here’s how things will differ:


CUMULATIVE EARNED INTEREST (24 Months) MONTHLY (Interest Rate of 7.88%) QUARTERLY (Interest Rate of 7.93%) HALF YEARLY (Interest Rate 8%) YEARLY (Interest Rate 8.15%)
Rs. 16,208 Rs. 15,760 Rs. 15,860 Rs. 16,000 Rs. 16,300

The differences are jarring. The total interest earned will increase with the payment amount. So always opt for cumulative returns wherever possible.

Calculate Your Returns

If you are a new customer with Bajaj Finance, with an investment of Rs. 1 Lakh. Bajaj Finance offers higher interest rates for senior citizens, with added benefits in case of renewal.

To help senior citizens enjoy a safe and secure post-retirement life, Bajaj Finance offers interest rates of up to 8.75%. So, if you’re retiring with a lump sum in the form of PF or gratuity, investing your money in Bajaj Finance FD is your best bet.

If you decide to invest higher amounts, with cumulative returns, for a 24 or 36 Month period, here’s how your returns will look like:


INVESTMENT AMOUNT INTEREST EARNED (24 Months) INTEREST EARNED (36 Months)
Rs. 1,00,000 Rs. 17,723 Rs. 28,614
Rs. 5,00,000 Rs. 88,613 Rs. 1,43,069
Rs. 10,00,000 Rs. 1,77,225 Rs. 2,86,139

If you plan your investment amounts with a suitable tenor with cumulative returns, fixed deposits can really serve to be the best investment tool you can possibly have. Having a flexible amount of investment can mean the difference between a great return, and a meagre income. Investing different amounts will also ensure you have a certain amount of liquidity.

Still Not Sure About Bajaj Finance FD Scheme? Read Bajaj Finance Reviews before Investing in Fixed Deposit & Visit Bajaj Finance Contact Details page to talk to our Customer Care Representative directly.