When you want to invest in a fixed deposit, you expect the highest interest rate so that you can double the money. But, as you may know, the bank and post office FD rates in India are witnessing a downward trend. So, to expect a fixed deposit double 5 years or lesser time is not the right investment thinking. The good news is that you can still grow your FD savings significantly with a smart investment strategy. As much as by 40% or more!
Let’s tell you how.
- Invest in a 5-year FD.
- Invest in an NBFC FD like that of Bajaj Finance FD which offers high interest rate up to 6.85%.
With interest rate as high as 6.85%, your FD corpus size will increase every year.
Here is an example to explain further. A 30-year-old IT professional and his 72-year-old father want to invest Rs10 lakhs each for 5 years. If they put their money in Bajaj Finance FD, they will get the following returns in terms of interest payout and growth in savings. As you can see, both Rohan and his senior citizen father get the benefit of 40%+ growth in FD savings.
|Customer type||Interest rate||Interest amount||Growth in savings|
|Non Senior Citizen (investing offline)||6.60%||Rs. 40,912||40.91%|
|Non Senior Citizen (investing online)||6.70%||Rs. 41,571||41.57%|
|Senior citizen||6.85%||Rs. 42,564||42.56%|
Apart from rewarding FD rates in India and high growth savings, there are several other benefits that Bajaj Finance FD offers:
- Safety of Investment
The well-known credit rating agencies such as CRISIL and ICRA have given highest stability ratings to Bajaj Finance FD. This means that Bajaj Finance FD is one of the safest instruments for investment. You can rest assured of guaranteed returns.
- Extra Interest Rate in Online FD
If you invest online in Bajaj Finance FD, you become eligible to earn an interest rate of 0.10% in addition to your base rate. The online application process is very simple and can be completed in a few easy steps. All you have to do is a fill up an online form and complete hassle-free formalities that take just a few minutes of your precious time.
- Multi-Deposit Facility
The multi-deposit facility of Bajaj Finance FD is based on laddering investment technique. Here, you can invest in multiple FDs, each small amount with a different tenor. When liquidity crisis strikes, you can opt for premature withdrawal of one FD without touching the rest of the FDs and letting go of interest earnings.
- Loan Against Fixed Deposit
When you need emergency money, you can just request loan against FD on your Bajaj Finance FD up to 75% of its value. A partial loan is a more feasible option than the premature withdrawal of the entire FD amount by paying the penalty rate.
- Periodic Payouts
You can get monthly, quarterly, half-yearly or yearly interest payout if you want to fund your routine expenses from Bajaj Finance FD.
- Monthly Investment Option
If your budget or income doesn’t permit lumpsum investment, you can make small 6-48 monthly deposits through Systematic Deposit Plan (SDP) on Bajaj Finance FD. You can opt for either different maturity dates or single maturity date.
The right investment mindset is to let your FD money grow at a high interest rate without worrying about myths like fixed deposit double 5 years. Bajaj Finance FD offers an interest rate up to 6.85%, which is among the best FD rates in India. At this interest rate, you can invest in Bajaj Finance FD for 5 years and grow your FD corpus by 40% or more. Bajaj Finance FD also brings with it several other features such as small monthly deposits, loan against FD and periodic payouts that add more value to your investment, making your FD returns more effective in the long-term.