Here’s Everything you Need to Know About Bajaj Finance Fixed Deposit

Fixed Deposits (FDs) have been popular investment options in India since times immemorial. Irrespective of the interest rate risks carried by FDs, they are comparatively low risk financial assets. They are even referred to as ‘risk-free’ or ‘riskless’ instruments in the financial world. Thus, every investor must have FD investments in his portfolio for risk optimization.

Bajaj Finance FD is a good option. Headquartered in Pune, Bajaj Finance Limited is the Loan & Deposits firm of the Bajaj Finserv Group. Boosting of a huge customer base of approximately 36 million Indians, Bajaj Finance enjoys significant brand equity among the Non-Banking Financial Companies (NBFC) of India. Their term deposit schemes are one of the best in the country.

Salient Features of Bajaj Finance FD

  1. Good credit ratings

As mentioned earlier, Bajaj Finance is a reputed player in the FD market. It has been consistently rated at ‘AAA’ by credit rating agencies like ICRA and CRISIL.

With many banks being restructured or shutting down worldwide due to mounting Non-Performing Assets (NPAs), Bajaj Finance has stood its ground with its path breaking asset management policies.

Thus, your deposits are in secured hands. Backed by the trust of Bajaj Group, this FD is a must in your portfolio.

  1. Better FD interest rates than peers

Bajaj Finance FD offers guaranteed returns at 6.60% per annum on your FDs – better or at par with other reputed NBFCs in the market. You will gain an additional 0.10% if you open an FD online. FD investment from the comfort of your home with additional returns is an important feature of Bajaj Finance FD.

If you are a senior citizen then you are in for higher gains. You will earn 6.85% per annum through their senior citizen deposit scheme.

  1. Best option for building contingency corpus

In times of uncertainty, your market-linked investments can incur huge losses. Thus, you always need emergency funds at your disposal to take care of your immediate liquidity needs and daily expenses. FDs are the best investment vehicle for managing contingencies. 

Bajaj Finance FD offers a decent rate of return even during these testing times. You can multiply your savings through Bajaj Finance FD even during a bear run marred by lower interest rates.

  1. SDP Scheme

One of the most striking features of Bajaj Finance FD is the Systematic Deposit Scheme (SDP) akin to Systematic Investment Plans (SIP) of mutual funds.

Bajaj Finance offers two variations of SDP. They are:-

  • Monthly maturity scheme : Under this scheme, you need to deposit a nominal amount every month. The interest rate applicable will be the prevailing FD interest rate on the date of investment. For every monthly deposit you can choose a tenure between 12-60 months. Varying maturity dates will allow you to align your financial goals with the investment timeline.
  • Single Maturity scheme: This scheme is ideal if you wish to even out interest rate fluctuations by opening multiple term deposits with the same maturity date through a single lump sum payment.
  • Visit the company website to understand the pros and cons of each scheme.
  1. Other features

Other notable features of Bajaj Finance FD are:

  • Minimum Deposit Amount : Rs 25000
  • Minimum Lock in period : 3 months
  • Loan Against Deposits
  • Premature withdrawal.
  • Multi-deposit schemes
  • Easy online application process.

Thus, Bajaj Finance FD is highly recommended on ease and convenience along with high rates. 

Current Macroeconomic conditions

Economies all over the world including India have been adversely hit by the global recession. 

In October 2020, India registered its highest inflation rate of 7.61% post March 2014. Therefore, the Reserve Bank of India (RBI) decided to keep repo and reverse repo rates unchanged in their December 2020 monetary policy meet. With inflation slated to rise further, possible repo rate cuts exerting downward pressure on FD rates unlikely till 2021. Thus, this is the best time to invest in an FD.

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