One of the most reliable modes of investment, a fixed deposit ensures the security of your deposits to earn a regular income. It eventually helps meet your financial goals. You can check the returns on your FD to plan your expenses by doing a little market research.
Things you must check before investing in an FD:
1. Fixed deposit interest rate
A fixed deposit (FD) is undoubtedly a safe way to grow your investments. But, banks and other financial institutions provide FD at different interest rates. You must know about the prevailing FD rates across the market and compare them before investing.
Non-Banking Financial Companies (NBFC) usually provide higher interest rates than banks. Financial institutions like Bajaj Finance offer interest rates as high as 8.20% p.a. on FD. The FD rates also depend on the tenure that you choose for the investments, and higher tenure gives higher returns. You can invest in Bajaj Finance Fixed Deposit with an amount as low as Rs. 15,000. You can get a maximum return of up to 8.20% p.a. for 44 months tenure.
In general, investing in an FD means you must invest a lump sum amount of money for a certain period and earn interest upon maturity. That certain period is tenure. Bajaj Finance provides a wide range of tenures for an FD from 12 to 60 months. In emergencies, you can also break your FD to withdraw funds, even before maturity, incurring a loss of interest. This penalty or interest loss depends on when you choose to withdraw.
There is a lock-in period of 3 months, post that, you can choose to withdraw the amount prematurely. The interest payable is less than 3% of the lowest interest offered by the institution, in case no rate is specified for the deposit period.
Click here to check the Bajaj Finance Fixed Deposit interest rates for different tenures.
2. Minimum amount
Fixed deposit is naturally less risky and offers profitable returns. Banks and NBFC both have a very low investment amount to start with an FD. In this way, even an individual with a lower earning potential enjoys the benefits of a fixed deposit at significant interest rates. You can start your investments with a financial institution like Bajaj Finance Fixed Deposit. You can get the interest of up to 8.20% p.a. starting with a minimal investment of Rs. 15,000.
All the residents, individuals, and non-individuals can apply for a fixed deposit in India.
Individuals eligible to book an FD are:
- Resident Indians
- Non-resident Indians
- Persons of Indian Origin, and
- Overseas Citizens of India
Non-individuals eligible to book an FD are:
- Partnership firms
- Sole proprietorships
- Hindu Undivided Families (HUFs)
- Societies, and
- Family trusts
To book an FD in Bajaj Finance, you must be 18 years and above. Invest in Bajaj Finance online FD to book a deposit in less than 10 minutes and save your time. Alternatively, you can book an FD by connecting with our representative or writing to us at firstname.lastname@example.org
New customer needs to submit the following documents to book a Bajaj Finance FD:
- Latest photograph
- KYC of all applicants
- PAN card
- Aadhaar card, passport, driver’s license, voter ID (any one)
3. Credit rating
When it comes to investment, security is the most critical aspect. You would always want to ensure that the deposits are safe and gives a profitable returns.
You can be rest assured investing in Bajaj Finance Fixed Deposit with the highest credit ratings – CRISIL AAA/ STABLE and [ICRA]AAA(Stable). These ratings ensure the highest degree of safety for your funds in a company. The higher the credit rating, the lower the risk.
All financial institutes providing FD offers two types of payouts, cumulative and non-cumulative.
In cumulative FD, you can invest a lump sum amount over a period, and you get the payout (principal+interest) at maturity (tenure end). The returns are very good here as the interest gets fully compounded and earned after maturity. It is an excellent option to earn higher returns and for those with a good amount of money to set aside for growth.
The non-cumulative option allows you to earn a regular payout. You can choose monthly, quarterly, half-yearly, or yearly payout frequencies. However, it is a good option for those dependent on regular payouts to meet their financial goals.
You can calculate the returns on FD using an FD calculator