Enjoy High FD Interest Rates with Bajaj Finance to Build a Contingency Fund
Pune, Maharashtra: Emergencies can come out of nowhere and leave even the most strategic and financially stable individuals blindsided. A contingency fund is the best hope of getting through it, as dipping into savings can prove problematic. This is because emergencies often require more funds than anyone can anticipate. For instance, in the case of a medical problem, one must account for the cost of treatment, recovery, subsequent medications, and specialised therapy. So, having a large enough fund parked safely is the best way to be prepared for such occurrences.
Unfortunately, building a contingency fund is no easy task. It could take months, and even with diligent saving habits, inflation could erode a lot of its value over time. The best way to put money aside for such needs is to invest in a safe instrument like Bajaj Finance Fixed Deposit. Its stability, combined with the high FD rates and easy liquidity options, helps investors build a corpus effectively.
Read on to know more about how to make the most of this fixed deposit to build an emergency fund.
Invest early without having to save a significant amount
Regardless of the goal, investing as early as possible will always be beneficial as you stand to gain the benefits of compounding interest. It allows one to stay invested for longer, effectively adjusting for inflation in the process. With the Bajaj Finance FD, one can get returns up to 6.80% p.a, while senior citizens can earn up to 0.25% more. Investors can enjoy benefits such as a minimum deposit amount of just Rs. 25,000.
Choose to stay invested for a longer tenor
To build a contingency fund via investing, one should consider opting for a longer tenor. Bajaj Finance allows investors to choose a flexible investment window between 12 and 60 months. Investors should ideally select a maximum tenor of 60 months to make most of the compounding effect. Here, interest compounding benefits are most noticeable and work efficiently toward one’s end goal.
