PUNE, India, June 24, 2020 /PRNewswire/ -- With the Reserve Bank of India's announcements to boost liquidity and ease financial stress, financiers wouldn't need to increase rates on conventional options like savings accounts or deposit rates. Additionally, the government had slashed interest on PPF, NSC, and other small savings schemes by 70 to 140 basis points for April-June quarter. Speculations about a further rate cut on these savings schemes, are also rife, as reports suggest that PPF interest rates may fall to a 46-year low as they may fall below 7%.
Leading banks have reduced their deposit rates several times and FD interest rates are averaging below 6% during these times. Unfortunately, senior citizens have been hit the hardest, by these events.
Thus, they need inflation-beating interest rates of more than 7%, which can be availed by investing in a Senior Citizen Fixed Deposit offered by Bajaj Finance Ltd., the lending and investment arm of Bajaj Finserv. Here, they can get attractive FD interest rates, flexible tenures and multiple payout options, which make it an ideal investment for senior citizens.
Listed below are the reasons to know why senior citizens must choose Bajaj Finance FD to grow their savings: Highest safety and assured returns Senior citizens looking to grow their savings with assured returns can invest in a Bajaj Finance Fixed Deposit, which has the highest safety ratings of FAAA by CRISIL and MAAA by ICRA. Since these ratings indicate safety and credibility, senior citizens can rest assured that their principal and returns are in safe hands. They can hence, expect to receive their maturity proceeds on time.
With a clientele of more than 2,35,000 unique FD customers and a deposit book of 20,805 crores, Bajaj Finance is one of the most trusted FD issuers. More than 90,000 of these customers are senior citizens contribute towards a deposit book of more than 6200 crores. These numbers indicate the highest level of trust reposed by customers, in this deposit.
Higher interest rate for senior citizens Even amid falling interest rates, senior citizens can get 0.25% higher fixed deposit rates with Bajaj Finance. And, depending on the tenure they choose, as a senior citizen investor, can earn interest of up to 7.85%. Here's a snapshot of how much one stands to gain by choosing varied tenures.
Investment Amount (in Rs.) Tenure (in yrs.) Interest Rate Interest Earned (in Rs.) Maturity Amount (in Rs.) 40,00,000 2 7.7% 6,39,716 46,39,716 40,00,000 3 7.75% 10,03,937 50,03,937 40,00,000 4 7.85% 14,11,786 54,11,786 40,00,000 5 7.85% 18,36,611 58,36,611 To multiply the returns further, customers can choose an auto-renewal facility when applying for an FD. This way, on maturity, their proceeds will be reinvested, and this will allow them to earn an additional interest rate of 0.10% on the prevailing rates.
Fund regular expenses with periodic interest payouts For senior citizens looking to fund regular expenses without using up their savings, Bajaj Finance offers the option to get interest payouts on a periodic basis. Using FD interest Calculator the monthly payouts can also be determined easily.
To understand this better, let's assume a senior citizen invests Rs. 70,00,000 in a Bajaj Finance Fixed Deposit for 5 years. Here's a look at their interest payouts on a periodic basis.
Deposit Amount (in Rs.) Interest Payout Frequency Interest rate (in %) Interest Payout (in Rs.) 70,00,000 Annual 7.85 5,49,500 70,00,000 Half-yearly 7.70 2,69,500 70,00,000 Quarterly 7.63 1,33,525 70,00,000 Monthly 7.58 44,217 On choosing these periodic interest payouts, investors keep earning regular interest and at maturity, they can get their principal amount. Further, they can use these funds to pay for big-ticket expenses like their children's wedding, prepayment of a home loan, and so on.
Convenience of investing During the current times, the flexibility to invest from the comfort of homes is much-needed. Bajaj Finance offers the convenience of easy online fixed deposit to existing customers, who can enjoy a paperless online process, within a few minutes. New customers can also opt for contactless deposits by Bajaj Finance, or opt for easy document collection from home.
Customers can also choose the tenure as per their convenience and use the FD interest rates calculator to determine their investments easily. These features make Bajaj Finance FD one of the best investment avenues for senior citizens, who can look to grow their savings easily. In case of emergencies, they can also opt for an easy Loan against Fixed Deposit that helps them fund their expenses easily without having to liquidate their savings.
About Bajaj Finance Limited 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. It is also the only NBFC in India with the international 'BBB' with stable outlook for long-term, by S&P Global Rating.
To know more, please visit: https://www.bajajfinserv.in PWR PWR