Four benefits of Systematic Deposit Plans that you need to know about

Investments such as the Bajaj Finance Fixed Deposits are the key to growing the value of your savings. However, fixed deposits (FDs) require a minimum deposit amount that you may not be looking to invest in one go.

To help you get the benefits of an FD while side-stepping this hurdle, Bajaj Finance has introduced the Systematic Deposit Plan (SDP) feature. This monthly savings tool aims to provide you with the convenience of systematic investment plans (SIPs) without any of the risks.

Here are the benefits of choosing a systematic deposit plan for your investments.

Guaranteed returns with small deposits

With the systematic deposit plan, you only make monthly deposits starting at Rs.5,000. Despite the low investment amount, you get the same benefits as a traditional FD from Bajaj Finance. You can grow your savings at the rate prevailing on the date of deposit (currently up to 8.60%) with the assurance of safety (Bajaj Finance FDs are accredited with high safety ratings from CRISIL and ICRA.

Choose the tenor and number of monthly deposits

Based on your financial goals, you can choose to have six to 48 monthly deposits and pick from a flexible 12- to 60-month tenor. However, the tenor, once set, remains constant for all deposits.

To understand this better, let’s assume you’re a new customer making 6 monthly deposits of Rs. 5,000 each. This means you end up saving Rs.30,000 at the end of six months. Over and above which you will earn interest payout. Use our handy online SDP Calculator to estimate the growth of your investment.

Revised SDP interest rates for all customers w.e.f May 10, 2023 (0.25% p.a. additional for senior citizens)

*Special interest rates are offered on special tenure of 15, 18, 22,30,33, 39 and 44 months

Please see the below table as a reference.

You can see that your interest amount increases when you choose a longer tenor for each of your deposits. This is because a longer tenor helps you maximize your savings with the power of compounding and enables you to gain from increased FD interest rates.

Save as per your convenience

While your first payment must be made via a cheque to ensure that your bank account details are registered in our records, the subsequent ones are automated with a NACH mandate. Further, you get the option to deposit amounts on a fixed date, either the 3rd, 7th or 12th of every month. This helps you become disciplined without compromising on convenience.

Get more liquidity options through SDPs

Each payment creates a new deposit with our systematic deposit plans, so you get maturity proceeds at frequent intervals. Further, once a deposit completes three months from the date of issuance, you get the option to withdraw it prematurely. Additionally, you can take a loan against each deposit to address your monetary needs.

Now that you know why you should build your savings with a systematic deposit plan, fill out the SDP form online to start growing your investments.