Growing your hard earned money is now easier than before. Thanks to digitization, investment opportunities are numerous and much easier to access than before. However, to truly benefit from these options, you need to diversify and have a healthy balance between instruments that are market linked and those that promise safe returns. A fixed deposit is a great option to consider when choosing the latter. With that in mind, a fixed deposit from Bajaj Finance offers high FD rates across the board and promises to be a stable investment option. FD interest rates are just one of the many reasons to invest in such offers and find out how they can help you make a profit. Read on.
Invest for a long time
When you invest in a FD, the best way to benefit from generous returns is to park your funds for a long time. Thanks to the principle of compound interest, the longer you stay invested, the better your returns. Note that the FD interest rates applicable to your fixed deposit may vary depending on the term. To see the best returns, choose the longest tenor possible. Many banks or NBFC offer high FD interest rates when the content is at least three years or more. Below is an example of how it works and the feedback you can expect. The table below shows the returns you can receive on investing Rs. 2 lakh with Bajaj Finance FD.
The table clearly shows the difference in income, and the longer duration harvests the highest yields. So when the goal is to grow your hard earned money, a long term FD is a smart choice.
Spread out investments and enjoy consistent returns
Laddering is another investing practice that you can use to generate income with your savings. This is a recommended approach because it allows you to align your investments with your other financial goals. Here, instead of investing in a single FD, you are investing in a tiered model, reserving multiple FDs. For example, if you have three goals spread over three years, it would be wise to invest in each goal accordingly. This way, you don’t rely solely on your savings or income to fund such expenses. With the support of yields to maturity, you can quickly and easily achieve your goals. Scale requires forethought, but it can work in your favor with enough planning. Bajaj Finance’s Systematic Deposit Plan (SDP) allows you to make monthly investments, each locked in as a new FD. You can start as low as Rs. 5,000 and choose from a single term program or a monthly term program.
Choose the best payment option
When you invest in a fixed deposit, you can choose how often you pay the interest. Financiers have several options available to you, and these range from monthly, quarterly, semi-annually, annually, and flat-rate. So you can tailor returns to your goals and effectively grow your savings. Typically, the lump sum offers the highest returns, and you should choose it if your only goal is to grow your body. Please note that the applicable interest rate on your fixed deposit may vary depending on the payment option you choose. It is common for financiers to offer slightly different rates, so check this before investing.
Here are some ways to effectively generate wealth with a fixed deposit. Now your only task is to choose the right instrument such as Bajaj Finance Fixed Deposit. It comes with high FD rates, up to 7.05% on five-year FDs. It also has several features like online loan against FD, low minimum deposit amount of Rs 25,000, and more. To start your journey today, invest in a Bajaj Finance Online FD and enjoy returns from one of the safest instruments in India.