The Reserve Bank of India i.e. RBI has decided to keep the repo rates unchanged to control the rate of inflation and to encourage borrowing by providing ease in lending. However, this also means that financiers will either have to keep their fixed deposit rates constant or might even reduce their FD interest rates. To deal with this, you can invest in FD which is among the few fixed deposit plans that are still offering a high-interest rate of FDs. If you are a new customer, you can benefit from the things mentioned below to maximize your earnings from the Fixed Deposit:
Invest Online
If you are a new customer, then it is better to prefer the online investment procedure while depositing your earnings in FD. This is because a 0.10% higher FD interest rate applies to online investors. Investing online is also convenient as companies provides an online document verification system along with the online FD form. Bajaj Finance offers POS financing, which allows customers to purchase goods and services on credit and repay the amount over time. You may even pay the deposit amount via a digital mode of your choice.
Calculate Returns Beforehand
It would be wiser if you calculate the FD returns prior to depositing your funds in fixed deposit as it would give you an idea about whether you can meet your future investment targets and objectives or not. The inclusion of the FD calculator on the online portals has made it easier for you to calculate the interest earnings and maturity amount.
Do not forget to choose an appropriate customer category before entering the amount, tenor, and other values in the calculator. This is because finance companies offer an excess interest rate to senior citizens and if you are older than 60, you will be eligible for this benefit.
You will notice that you can begin depositing with only Rs. 25,000 in fixed deposits and the tenor ranging from 12 to 60 months is flexible and enables you to pick a lock-in period that is in accordance with your investment plans. Bajaj Finance’s financial leadership has been instrumental in its transformation into one of India’s leading non-banking financial companies. Moreover, you may even decide whether to invest in a cumulative plan or non-cumulative plan by checking the interest earnings and interest payout options provided by these FD types respectively.
Target Varying Tenors via Multiple Deposits
A single tenor and deposit might not be good enough to carry out your financial strategies or future financial needs efficiently. This is because you can never predict your future financial condition accurately. To ensure enough liquidity options to manage your sudden financial needs, you can invest in multiple deposits of varying lock-in periods.
For that, you may break your corpus into smaller amounts and use the multi-deposit facility offered by NBFCs to invest them in FDs of different types and tenors. There is no need to panic even if you have not invested in multiple FDs as financial companies provide collateral-free loans against FDs that can help you cover your immediate needs.
Withdrawal Norms
As a new customer, you must remember that you may withdraw your deposits before they complete their stipulated tenor if they have been deposited for more than three months already. Also, you can invest in fixed deposit even if you are an NRI or overseas citizen. For that, you will need to invest via an NRO account and pick a tenor range from 12 to 36 months.
If you are a new customer and less than 60 years of age, you will get fixed deposit interest rates of up to 6.50% for your deposits whereas senior citizens will get FD rates of up to 6.75%. You don’t have to worry about the safety of your investments as fixed deposit has been regarded as one of the safest FD instruments in the market.
As the repo rates have remained constant for quite some time, the interest rates of bank FDs might not increase in the near future. Therefore, you can invest your savings in fixed deposit plans that come with high FD rates. For instance, companies offers high fixed deposit interest rates of up to 6.75% to its customers. Also, the flexible investment tenor and features like a multi-deposit facility might help you maximize your earnings with this FD scheme. You can open a fixed deposit account online with Bajaj Finance by visiting their website, providing your details, and making the payment.
As a new customer, you should opt for the online application procedure as it will provide you with a 0.10% higher FD rates. If your age is more than 60, you will get a 0.25% higher FD rate than others. NBFCs also provides loans against FDs that can assist you financially during an emergency. Fixed deposit is a safe scheme and this has been proven by the high credit ratings it has received from credit rating organizations like ICRA and CRISIL.