PUNE, India, June 29, 2020 /PRNewswire/ -- The International Monetary Fund projected a global growth of -4.9% for this year, which is 1.9 percentage points lower than April 2020 forecast. The economic shock is fast-turning into a financial crisis, weighed down by falling incomes and profits.
In this backdrop, being cautious with money is a prerequisite, and investors need to save a portion of their monthly income. Letting the money sit idle in savings account, however, is not a solution amidst growing concerns of inflation that can erode the value of savings over time.
Further, there have been a slew of measures taken to increase liquidity, which warrant reduction in interest rates offered on savings schemes, deposits or any fixed income instruments. Investing in the highly volatile equity markets may pose very high risks, which leaves investors seeking avenues that aid with wealth generation. Fortunately, despite rate cuts in the recent times, Fixed Deposit offered by Bajaj Finance Ltd. (BFL), the lending and investment arm of Bajaj Finserv is giving generous returns of up to 7.85%. Read along to know why investing a portion of their regular income in this FD is great option for investors: Assured returns in a safe and reliable instrument For those looking to grow their wealth without any risk, choosing options offering the highest FD interest rates must not be the only criteria. This is particularly true in the present times, when the recent crisis in the banking sphere has raised security concerns and led to distrust in investors.
During these times, NBFC Fixed Deposits have also come in focus, due to the lucrative FD interest rates and conveniences offered. However, instead of making a choice solely based on high FD rates, it is advisable to check the background of the company and look for safety ratings by reputed credit rating agencies. Bajaj Finance has the highest ratings of FAAA by CRISIL and MAAA by ICRA, which indicates highest safety of depositors' money.
With a clientele of nearly 2,35,000 happy FD customers and a deposit book of more than Rs. 20,000 crores, this FD has the trust of most individuals. Bajaj Finance is also one of the only NBFCs in India to have '0 unclaimed deposits' – a fact that indicates the measures taken by the company to ensure timely payouts to investors.
Attractive FD interest rates to grow savings Major banks and financiers have dropped interest rates to as low as 3-4%, which is why earning optimal returns in the current market can be a challenge. However, with Bajaj Finance FD, new customers can earn attractive returns up to 7.60%, which can go up to 7.85% for senior citizens. When it comes to creating a corpus, this difference in interest rates can play a major role in combating inflation. To plan their investments, investors can consider using FD interest calculator, which can help them determine the interest earned, along with maturity amount and maturity date.
Here's a look at returns that can be expected, by investing in a Bajaj Finance Fixed Deposit.
Customer Type Investment amount (in Rs.) Tenure (in months.) Interest rate (in %) Interest Earned (in Rs.) Maturity Amount (in Rs.) New BFL customer 30,000 60 7.60% 13,270 43,270 Existing BFL customer 30,000 60 7.70% 13,471 43,471 Senior citizen 30,000 60 7.85% 13,775 43,775 Thus, by setting aside a small sum of Rs. 30,000 from monthly income for 5 years, investors can grow their savings by nearly 40%. If an investor were to set aside this sum of money each month for 1 year, here's what the earnings would be: Customer Type Total Investment amount in 1 year Tenure for e ach deposit Interest Rate Interest earned in 1 year New customer Rs. 3,60,000 5 years 7.60% Rs. 1,59,240 Existing customer Rs. 3,60,000 5 years 7.70% Rs. 1,61,652 Senior citizen Rs. 3,60,000 5 years 7.85% Rs. 1,65,300 Thus, investors can see that an investment of Rs. 3,60,000 can grow by nearly 40% over a period of 5 years. Investors can also opt for Systematic Deposit Plan, which enables them to save and earn on a monthly basis with deposits starting at just Rs. 5000 per month.
Convenience of end-to-end online investment Investors looking for an easier way to grow their savings, can choose the convenience of Bajaj Finance online FD, which is an end-to-end paperless process. This feature can help FD investors lock in to prevailing high FD rates from the convenience of their homes.
In addition to the promise of assured returns and convenience of online FD, Bajaj Finance FD can also be a great contingency fund. In case of emergencies, Bajaj Finance enables investors to liquidate their savings prematurely, upon completion of the 3-month lock-in period. Investors who don't wish to forgo their returns, can choose to avail a Loan against FD that is available at nominal interest rates. This option can help them fund emergencies without the need to break their Fixed Deposit.
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