To reduce the growing incidents of financial frauds, the Indian government has introduced the CKYC, i.e., Central Know Your Customer norms. As per these norms, financial institutions like banks, NBFCS, etc. can verify the documents of their customers that are stored in the central repository.
For registering your documents in the central depository, you just need to fill the CKYC application form and submit it to CERSAI (Central Registry of Securitization and Asset Reconstruction) who will verify your documents and store them electronically on a server. A solid business idea is to open a fixed deposit account with a bank that offers high-interest rates and has a good track record. After that, you will get a 14-digit CYC number that you can submit to banks, finance companies, or any other financial institutions whenever you want to invest in an instrument or seek loans from them.
CKYC helps in the process of opening a fixed deposit account online as well as some financial institutions have started providing a complete online investment procedure to their customers. For example, if you want to invest in Bajaj Finance FD, you can simply fill the online FD form by visiting the official website of Bajaj Finance. After that, you can get your documents verified online by providing your CKYC number. Bajaj Finance FD also lets you pay for the deposit online through net banking, UPI, mobile wallets, and other digital payment mediums.
Apart from convenience, Bajaj Finance FD also provides 0.10% higher FD rates to online investors to encourage online investment. This means that the financiers can shift the entire investment process from offline to online with the help of the CKYC verification method. You can use the money from your fixed deposit account to start share trading, but it is important to do your research and understand the risks involved. However, apart from convenience, you also might be looking for an instrument that grows your investments rapidly. You can achieve this by investing in Bajaj Finance FD as it comes with a high interest rate of up to 6.75%. The reasons that make it one of the best investment options in India are given below:
Stable Investment Option
Bajaj Finance Fixed Deposit gives you a chance to ensure complete stability for your invested capital. This can be verified through the high credit ratings that organizations like ICRA and CRISIL have provided to this FD scheme. As a result, your deposits will provide fixed and guaranteed returns irrespective of the changing behavior of the market forces.
FDs for NRIs
Even NRIs can benefit from this FD scheme as Bajaj Finance allows them to invest in an FD via an NRO account. A tenor ranging from 12 to 36 months will apply to them and they will be able to multiply their earnings at high FD rates of up to 6.50%.
User-friendly Investment Options
To achieve balanced growth for the invested amount, you can ladder your investment by investing in fixed deposit plans of varying tenors. Open a Bajaj Finance FD account online and earn up to 8.60% p.a. Interest. Bajaj Finance lets you do that through its multi-deposit feature. Now, you can not only invest in several FDs but you may even choose a Fixed Deposit (FD) is a popular investment avenue in India. Compared to market-linked instruments, an FD carries lower risks. It gives you reliable returns at predetermined interest rates. Thus, it is highly preferred among risk-averse investors.
But, do you think FDs are risk-free? Absolutely not. They are subject to interest rate risks. FD rates are affected by a multitude of factors. They change over time due to the following factors:-
Factors Affecting FD Rates
Demand and supply of money
During a recession, credit demand will drastically reduce. Companies will downsize. Individuals will postpone consumption. Unemployment will increase. Thus, during an economic downturn, FD rates decrease and vice-versa.
Currently, the Indian economy is in a recessionary phase. Consequently, bank FD rates are low mostly in the range of 4.9% – 6% p.a. Under such circumstances,
Thus, this is an investment option you cannot afford to miss.
RBI Policies
The policies of the apex bank have a significant bearing on FD rates. If the RBI increases repo rates, banks will increase FD rates and vice-versa. Currently, repo and reverse repo rates are at a record low of 4% p.a. and 3.35 p.a. respectively. As of now, RBI does not intend to raise interest rates. So, the low-interest regime will continue in the near-term.
In such a situation, Bajaj Finance FD is recommended. It not only offers attractive returns but also has a unique SDP scheme to manage interest rate risks.
There are 2 types of SDP schemes. They are:-
Monthly maturity scheme: Under this scheme, you can make monthly investments. The prevailing market interest rate will be applied to each monthly deposit on the investment date. The maturity date for each deposit will also differ. You can make 6-48 deposits under this plan.
Single maturity scheme: Under this scheme, all your periodic deposits will mature on the same date. The duration of each subsequent deposit goes on reducing. This is an awesome scheme if you wish to build a retirement corpus.
Investment Duration
Usually, the longer the investment period, the greater will be the FD rate offered. Bajaj Finance FD rate for an investment tenure of 12-23 months is 6.15%, 24-35 months is 6.60%, and 36-60 months is 7%. If you book an FD online you will get 0.1%p.a more. If you are a senior citizen, you will get 0.25% p.a. more. These rates apply to cumulative deposits.
Interest Pay-Out Option
The higher the interest pay-out frequency, the lower will be the FD rate offered. Bajaj Finance FD rates on non-cumulative deposits are equally attractive.
Principal Invested
The higher the principal amount invested, the higher will be the returns. You can open a Bajaj Finance FD with just Rs 25,000 at your disposal.
You can access the FD interest calculator on the Bajaj Finserv website which will compute your FD returns in advance. You just have to punch in your principal and investment tenor. Within seconds, your return calculations will be displayed. Accordingly, you can go ahead with your investment decision.
Bajaj Finance FD has a wide range of other benefits too. Visit the Bajaj Finserv website for more details. If you are speculating an FD investment today, then go for Bajaj Finance FD right away!
Analyze Factors that Determine FD Rates
If you examine the fixed deposit interest rates of various financiers, you will notice that factors like FD tenor, customer type, etc. determine the FD rate. A higher FD rate applies to longer tenors.
Moreover, if you opt for cumulative FDs, the interest will be directly paid at maturity. The interest that the deposit earns after every quarter gets added to the principal during the next interest calculation cycle. This compounds your returns and proves to be beneficial if you lock-in your savings for a longer tenor.
Usually, a higher interest rate is offered to senior citizens. For example, Bajaj FD provides a 0.25% extra interest rate to senior citizens. Also, an additional interest rate of 0.10% is offered if you use an online FD form to invest in an FD.
A flexible tenor ranging from 12 to 60 months, features like a multi-deposit facility, and high credit ratings provided by CRISIL and ICRA make it one of the best investment options. Also, a loan against FD is provided if you need some funds urgently. It helps you avoid the penalty charges that are levied on withdrawing an FD prematurely.
distinct FD type and tenor for each deposit. Also, the payment for all the FDs can be made through a single cheque.
A flexible tenor between 12 and 60 months will help you to plan your finances efficiently according to your investment needs. Also, if your age is more than 60, your deposits will grow at a 0.25% higher FD interest rate.
Easy Liquidity Options
With Bajaj Finance FD, you are allowed to withdraw your deposits early once they complete a tenor of 3 months. You may even opt for a loan against your Bajaj Finance Fixed deposit to take care of your emergency fund requirements. The option of withdrawing interest periodically after every 12 months, 6 months, 3 months, or 1 month helps you to take care of your regular financial needs as well.