A strong investment portfolio should be a healthy, diversified mix of both debt and equity asset classes such as fixed deposits, Public Provident Fund (PPF), National Savings Certificate (NSC), gold, stocks and mutual funds among many others. However, if there is one financial instrument which ensures market volatility and fluctuations, it is a fixed deposit offered by banks and Non-Banking Financial Companies (NBFCs).
- Let’s take a look five reasons why fixed deposits make a secure and rewarding option for parking your funds:
- High on Safety and Liquidity
- Lucrative Interest Rate and Flexible Periodic Payouts
- Read More: How to Pay Your Credit Card Debt from Personal Loan in Chennai
- Easy Access to Credit
- Additional Benefits
- Invest in a fixed deposit using your debit card
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Let’s take a look five reasons why fixed deposits make a secure and rewarding option for parking your funds:
High on Safety and Liquidity
- A fixed deposit assures the safety of your investment because it keeps the principal amount intact and gives guaranteed returns. If you avail fixed deposits which have higher ratings from CRISIL and ICRA, the safety factor goes even higher. Fixed deposits are also highly liquid instruments because you can choose flexible tenure as per your financial goals and encash it before maturity if the need may be.
Lucrative Interest Rate and Flexible Periodic Payouts
- Returns on fixed deposits are very stable and profitable because they are not dependent on market fluctuations. Top NBFCS and banks offer fixed deposit interest rates up to 7.80% for general citizens and 8.05% for senior citizens.
- Moreover, you can opt for monthly, quarterly, half-yearly or annual payouts on your fixed deposits. However, if you do not withdraw the interest, it will be reinvested and get accumulated through compound interest. That way, you can earn more on your investment.
- Systematic Deposit Plan (SDP)
- SDP is an investment option that enables you to invest a small amount of deposit every month at the interest rate prevailing on the date of each deposit. The tenor ranges from 12-60 months and you can make 6-48 monthly deposits. The maturity amount (principal + interest) is credited to your account at the end of tenor for each monthly deposit. In a nutshell, you can invest money in a systematic and disciplined manner with an amount as low as Rs. 5000.
- Currently, Bajaj Finance is the only financial institution which offers the unique feature of SDP on fixed deposits.
Easy Access to Credit
- When you need a quick and hassle-free loan during emergencies, you can obtain it against your fixed deposits without premature withdrawal and paying a heavy interest rate. The sanctioned amount of loan is usually up to 75% of the fixed deposit value.
- It is recommended to invest in fixed deposits that make the most of your investment and save your time on money management. For example, Bajaj Finance Fixed Deposit gives you additional benefits such as:
- Multi deposit facility – you can invest in multiple fixed deposits with different tenure and interest rates through a single cheque payment. This way, you can ladder your investments to meet your financial liabilities and enjoy liquidity as per your financial timelines.
Invest in a fixed deposit using your debit card
Choose an auto-renew option at the time of filling the application form so that the fixed deposit gets renewed automatically after maturity Fixed deposits are your most dependable investment instrument when you are looking to minimize your risk, maximize your returns and create wealth in the long-term.