Bajaj Finance Ltd.
In today’s times, risk averse investors are looking for safe avenues to invest their hard-earned money. Many of them prefer traditional investment tools like a Fixed Deposit (FD) or a Recurring Deposit (RD) rather than keeping their money idle in savings account. Both these options offer better returns to investors looking to grow their savings.
Fixed Deposit offered by Bajaj Finance Limited, the lending and investment arm of Bajaj Finserv, is a low-risk financial instrument. Investors can easily invest in a FD and grow their savings at a fixed rate of interest, which is higher than interest rates offered by savings accounts. The convenience of investing along with the safety of their deposit can help them plan their short-term and long-term goals easily.
Whereas, a Recurring Deposit is for those investors who do not have a lump sum amount to meet short-term goals. Hence, depositing a small share of their income to the RD account every month serves the purpose well. It allows its investors to earn fixed interests on the amount invested at frequent intervals until the investment matures.
The primary difference between both FDs and RDs is that the former is a one-time investment for a fixed duration, while the RD involves periodic investments of a fixed amount over a fixed period. However, when one compares a Recurring Deposit with company deposits like Bajaj Finance FD, the latter offers a host of benefits as elaborated in the below table-
For those looking for other monthly investment option Bajaj Finserv offers other options like Systematic Deposit Plan (SDP). Unlike FD, here investors need to deposit a small sum on a monthly basis, so every deposit is treated as a new FD, which earns interest as per the prevailing rate at the time of deposit.
Under SDP, investors can choose to save through any of the two variants –
Monthly Maturity Scheme – With this plan investors can invest in 6 to 48 deposits and the tenure they choose gets applied to all the subsequent deposits. They can also choose tenures ranging from 12 to 60 months for each of their deposit, and the maturity proceeds can be received every month, as per the chosen tenure.
Single Maturity Scheme – This plan works best for those who are looking to raise a lumpsum amount on a single day. Here, investors can start with small deposits monthly, but can receive their maturity proceeds on a single day.
There’s a common application form for both schemes.
Both new and existing Bajaj Finance customers looking to grow their savings can get high FD & SDP rates of up to 7.10%, with an additional interest rate benefit of 0.10% on investing online. This deposit works best for senior citizens who get a 0.25% rate boost on FD interest rates of up to 7.35%.
In addition to lucrative returns, Bajaj Finance promises the highest safety of deposit with safety ratings of FAAA by CRISIL and MAAA by ICRA, which are the highest in their respective categories. This company is also one of the only NBFCs with ‘0 unclaimed deposits’, which indicates timely payments and a default-free experience for customers.
Bajaj Finance Limited, the lending company of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 40 million customers across the country. Headquartered in Pune, the company’s product offering includes Consumer Durable Loans, Lifestyle Finance, Lifecare Finance, Digital Product Finance, Personal Loans, Loan against Property, Small Business Loans, Home loans, Credit Cards, Two-wheeler and Three-wheeler Loans, Commercial lending/SME Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle Refinancing Loans along with Fixed Deposits. Bajaj Finance Limited prides itself on holding the highest credit rating of FAAA/Stable for any NBFC in the country today.