As Repo Rates Remain Unchanged, Invest in a Bajaj Finance Online FD
Pune, Maharashtra: On June 4, 2021, RBI Governor Shaktikanta Das announced that repo rates and reverse repo rates would remain unchanged at 4% and 3.35% respectively. This announcement came after the Reserve Bank of India’s Monetary Policy Committee (MPC) scheduled from June 2, 2021 to June 4, 2021. This is the sixth consecutive time where the RBI maintained a status quo on repo rates. The repo rates have remained unchanged so that inflation can be kept under check, and close to MPC’s 4% target. Additionally, these measures can help in infusing liquidity in the market, given the current frail economic climate.
While this helps in easing lending, there is a downward pressure to reduce deposit rates on all financiers. The current scenario in the world has shed light on the importance of savings, especially in the event of emergencies. With the recent announcements, there may be further deposit rate cuts, which is why it is important for investors to lock into prevailing high FD rates to grow their savings. One may consider investing in market-linked instruments, but those are subject to risks, based on market movements. In order to diversify and balance one’s investment portfolio, it is best to choose a sound financial plan that is not affected by market movements. During these times, Bajaj Finance online FD can be a preferred investment option that offers attractive returns along with the highest safety of deposit.
Here’s why one can choose to invest in Bajaj Finance online FD, amid the latest MPC announcements:
Assured returns
Bajaj Finance online FD offers attractive interest rates up to 6.75% for senior citizens, irrespective of their mode of investment and interest rates up to 6.60% for non-senior citizens investing online. These rates of interest are relatively higher than the rates provided by post office and bank FDs. A higher rate of interest ensures that the investor earns better returns on maturity, facilitating growth.
Consider an example where an investor invests Rs. 30,00,000 choosing different tenors in a Bajaj Finance online FD to compare the returns.
|
Investment Plan |
Principal Amount |
Tenor |
Applicable Rate of Interest |
Interest gains |
Maturity Amount |
|
Non-senior citizen applying online (Cumulative) |
Rs. 30,00,000 |
2 years |
6.2% |
Rs. 3,83,532 |
Rs. 33,83,532 |
|
Non-senior citizen applying online (Cumulative) |
Rs. 30,00,000 |
3 years |
6.6% |
Rs. 6,34,066 |
|
|
Non-senior citizen applying online (Cumulative) |
Rs. 30,00,000 |
5 years |
6.6% |
Rs. 11,29,593 |
Rs. 41,29,593 |
hus, one can look at attractive FD rates, applicable to different tenors. A longer tenor yields higher returns because of the compounding effect. As the table suggests, the returns earned from a Bajaj Finance online FD can be significant.
One can also avail the option of earning periodic payouts from the same amount and a tenor of choice by investing in a non-cumulative FD. They can choose the option of earning payouts monthly, quarterly, half-yearly, annually or at maturity.
Given below is the periodic payout table for the same amount and a 5-year tenor mentioned earlier:
|
Periodic payout options |
Deposit Amount |
Tenor |
Interest rate |
Payout amount |
|
Monthly |
Rs. 30,00,000 |
5 years |
6.41% |
Rs. 16,025 |
|
Quarterly |
Rs. 30,00,000 |
5 years |
6.44% |
Rs. 48,300 |
|
Half Yearly |
Rs. 30,00,000 |
5 years |
6.49% |
Rs. 97,350 |
|
Yearly |
Rs. 30,00,000 |
5 years |
6.60% |
Rs. 1,98,000 |
This provision is especially helpful for senior citizens who can plan to cover their monthly expenses using these funds.
Premature withdrawal
With Bajaj Finance, one can withdraw prematurely from their fixed deposit, during emergencies. Bajaj Finance offers an easy to avail Loan against FD, where the investor can avail a loan against their FD up to 75% of the invested amount. The process of facilitating a loan against FD is undertaken with minimal documentation, quick processing and no additional charges.
Convenient online process
One can now invest in FDs without the hassle of submitting physical copies of multiple documents and standing in long queues. With the Bajaj Finance online FD, one gets the benefit of a contactless and paperless online process. An additional rate benefit of 0.10% is offered to those investing online.
Safety and credibility
This fixed deposit is a great choice for investing one’s earnings, and risk-proofing their investment portfolio by diversifying it. Bajaj Finance online FD has been accredited with high credit ratings by CRISIL (FAAA) and ICRA (MAAA) which are the leading credit rating agencies in India. Additionally, Bajaj Finance is one of the only NBFCs to have ‘0 unclaimed deposits’, which is again an indicator of timely payments and default-free experience.
Consider investing in a Bajaj Finance online Fixed Deposit to safeguard one’s investments from volatile market movements.
