Saving money is something we hear about right from the time we start earning. The primary step to saving money is opening a savings account. You can deposit as well as withdraw money as per your preferences. The interest rates earned on savings account are comparatively low than other investment options.
The most secure investment option in India right from the start is Fixed Deposit (FD). As the name suggests, you have to deposit a lump sum amount in a fixed deposit account for a fixed tenor.
The FD interest rates are higher than that of a standard savings account. Earlier bank FDs were only considered to be the secure option.
However, Non-Banking Financial Company (NBFC) with high credit rating offers higher FD interest rates as compared to bank FDs along with the security of the invested money.
Why should you invest in an FD?
There are many benefits of investing in an FD, some of which are as follows:
- Minimum deposit of Rs. 1000 to Rs. 25000.
- Guaranteed returns of the invested money without the influence of fluctuations in the market rates.
- Flexibility in choosing the tenor of the FD from 12 months to 60 months.
- Option to select the frequency of FD interest payout and the type of FD.
- Facility to take a loan against FD in case of emergencies and flexibly repay the money.
- You can apply for an FD online with minimal documentation and quick application form.
- You can make partial withdrawals by paying penalty charges for the same. However, it is not advisable to make partial withdrawals so as to enjoy the complete benefits offered.
- If you invest in prominent NBFCs like Bajaj Finance, you can also manage your FD account online using the portal, Experience.
- You can Calculate the FD Interest Rates as well as the maturity amount using the online FD calculator easily accessible from the website of the financial provider.
Cumulative and Non-Cumulative FD
When applying for an FD online or offline, you have the option to choose between a cumulative and a non-cumulative FD. In a cumulative FD, the interest rate is calculated on a quarterly or an annual basis. This interest rate is accumulated and added to the invested money and is paid to you at the time of maturity.
With a non-cumulative FD, you can select the frequency of the interest payout on a monthly, quarterly, bi-annual, or annual basis. Usually, the FD interest rates offered with a cumulative FD is higher than that of non-cumulative FD.
If you deposit in market-linked investment options, there are high chances of your money not being returned. You may earn high returns, but the volatility of earning makes it a risky investment option. You cannot determine the returns that you may earn from such volatile investment options.
On the other hand, if your investment in non-volatile investment options such as Fixed Deposits, not only will your investments be secured but also you can calculate the returns as well as the FD interest rates using the online FD calculator.
Moreover, if you invest in NBFCs such as Bajaj Finance, you can avail FD interest rates up to 9.10% which the considerably higher than all other investment options as well as bank FDs. Senior citizen applicants, as well as existing customers, can enjoy increased FD rates.
How to Apply for an FD with Bajaj Finance?
You need to determine the idle money, and that will be of no use in the near future. Next, you can visit the website of Bajaj Finance and check your eligibility criteria as well as read out the terms and conditions of the company.
Once you agree with all the terms, you need to find out the online FD calculator from the website. By providing few necessary details such as the type of the customer (existing, new, and senior), amount to be deposited, type of FD, the frequency of interest payout, and the tenor, the expected FD returns from your investment shall be displayed on the screen.
You can manage your funds accordingly and apply online. You will need to fill a quick application form, submit a few necessary documents and deposit your money online via NEFT/ Cheque/ IMPS, etc.
A representative from the company shall approach you to collect your application form and the required documents. As soon as your application and documents are processed and verified, your FD account shall be activated.