A Term Deposit, also known as Fixed Term Deposit, is a financial instrument that locks in money for a pre-defined period at a pre-determined interest rate. As immensely popular investment options, here’s what Term Deposits offer:
• Guaranteed returns
• Lower risks
• Higher interest rates than savings accounts
• Greater returns for senior citizens
Bajaj Finance Fixed Deposits are a must-have in your investment portfolio, if you’re looking for capital conservation and guaranteed returns. Here’s a lowdown on some of the best features of Bajaj Finance Fixed Deposit along with the different benefits.
Term Deposits can be started for tenors of your choice. Bajaj Finance offers flexible tenors ranging from 12 to 60 months. Plus, you have the option of laddering your Term Deposit investments, so you can manage multiple Term Deposits of varying tenors.
Term Deposits are the investment you should choose, if you desire assured returns. No matter, what is the change in interest rates, you’ll be assured of the return that was predetermined when you opened the Term Deposit. You can plan your future finances properly as you get to know the exact amount (Principal + interest) you’ll receive on maturity.
Bajaj Finance offers a whopping interest rate of 7.85% on FDs. Suppose you invest Rs. 1 Lakh for 48 months, you will receive an interest amounting to about Rs. 35,000. The total amount at the time of maturity will be Rs. 1,35,000. You can calculate the maturity amount using an FD calculator for varying principals.
Risk-averse investors find Term Deposits as the best investment avenues. Term Deposits carry lower risk and their guaranteed returns make them an investor-friendly product. Additionally, the interest earned on Term Deposits is definitely higher than what you would earn by keeping your funds idling in a savings account.
With a set maturity date, it becomes easy for you to budget your finances. You know for sure when the Term Deposit will mature. The lock-in period is determined right at the time of making the deposit.
You can withdraw early, if there is any emergency. However, doing so will attract a penalty on the interest you earn.
An effective tactic to avoid premature withdrawal is to ladder your FD investments. Spreading the term of the deposits over varying periods, will let you enjoy liquidity, without having to forego the returns.
Instead of breaking your fixed deposits prematurely, you can avail a loan against your deposits, with minimal documentation. You can get a loan upto a maximum of 60-75% of the Term Deposit value. The interest on such loan will be slightly higher than the Fixed Deposit interest rate. This works cheaper for you, than taking a Personal Loan. No prepayment charges or foreclosures are applied when you take a loan against your Bajaj Finance FD.
The above list of features are good reasons to invest in a Bajaj Finance Term Deposit.
While Term Deposits don't always factor inflation, you can always look for financiers like Bajaj Finance who help you beat inflation and gain from stable returns that grow over time.
Choice of Fixed Deposits
When it comes to choosing Fixed Deposit types, there are two main types. You can choose from cumulative FD and receive the total interest compounded annually at the time of the maturity or choose non-cumulative FD schemes and receive interests monthly/quarterly/semi-annually/ annually as per your wish.
Special Benefits for Senior Citizens
In general, all banks and financial institutions offer a higher interest rate to senior citizens. Bajaj Finance goes a step further offering 8.2%, one of the highest in the country. Other features and benefits available on regular Fixed Deposits are available on Senior Citizen Fixed Deposits as well.
Applying For A Fixed Deposit
Opening a Term Deposit is a simple and easy process. In fact, many banks and financial institutions like Bajaj Finance offer the facility of applying online. Make use of an FD calculator available online, to calculate your returns across varying tenors. It takes just a matter of minutes to open a Term Deposit. All you have to furnish is your personal details along with your choice of deposit amount and tenor, along with the frequency of interest payout, that you’re looking for.
Every depositor must comply with the KYC requirements. In addition, you’d be required to provide proof of your identity, address and signature.
Impact of Term Deposit Foreclosure
Closing your FD before the end of its maturity does indeed attract penalty, in the form of reduced interest. Bajaj Finance FDs have a lock-in period of just 3 months, after which the depositor can foreclose the FD. If the FD is closed between 3 and 6 months of FD opening, only the principal is paid back to the depositor. If the deposit is held for a period over 6 months, then interest payable is 2% lower than the interest for said period.
Term Deposits are one of the best available investment options that provide you guaranteed returns while keeping your risks low. At Bajaj Finance, Term Deposits carry the highest interest offering combined with excellent safety. Choose a Term Deposit investment for a secure future.
For any query feel free to visit Bajaj Finance FAQ & clear Your doubts. If you want to talk to our representative directly then visit Bajaj Finance Customer Care page.
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