How many times have you wondered how wonderful it would be to be able to earn a high return on investment like equities without the fear of losing your capital to market volatilities? Equity mutual funds and direct equity are known for giving high ROIs over a period of 10 years or more.
However, investing in equities is not everyone’s cup of tea, and the limitations due to risk appetite limit your investment options. While you can still invest a larger percentage of your portfolio in equities, as you grow older with increasing responsibilities with family needs, aging parents and children’s education, the percentage of equity investment is bound to come down.
Fixed deposits come to the rescue
Even though a wide range of investment options are available, most investors tend to rely on fixed deposit investments as a means to build a corpus. 5-year bank FDs also provide tax saving. However, bank FDs tend to give a lower rate of return ranging from 7% to 7.75%. Due to the current interest rate scenario where the Reserve Bank of India has decreased the repo rate, the deposit rates have gone down. Thus, any new bank fixed deposits will have a low return on investment during any tenor.
FDs win over their safety and guarantee of return. But what if there was an instrument which could give higher returns with the same safety? Company FDs like Bajaj Finance Fixed Deposit provide higher interest rates up to 8.60%. You can make use of these deposits to create different investment strategies and build a substantial corpus for you and your family’s needs.
Grow your savings by 51% with a Bajaj Finance FD
With a basic principal investment of Rs. 25,000 over a period of 5 years, you will multiply your investment into Rs. 37,765. This is a 51% return on investment, for five years, with 8.6% rate of interest. Thus, you can earn a high return on investment, without risking your core capital and compromising on your risk appetite.
Fulfill all your goals
- Tax saving – You can save up to Rs. 5,000 as Tax Deducted at Source (TDS) on your interest earnings. This will help you effectively file your income tax filings. This additional Rs. 5,000 can be an additional capital or saving to invest.
- Goal planning – You can place a number of fixed deposits for maturity at different intervals spread across the years to ensure that you have a ready corpus in place for various life goals. This is called as Laddering, and using this strategy with high-interest rates is of great advantage.
- Meet monthly expenses – If you need to invest idle cash in the bank, you can easily do so in a non-cumulative FD with Bajaj Finance and receive monthly payouts which you can use to meet monthly expenditure.
Other benefits of Bajaj Finance FD
You can use the Online FD Interest Calculator to see the returns on your intended investment. You can also adjust the tenor to see how much you will earn in that period. These adjustments are now easily seen at the click of a button, and you can take an informed decision regarding principal amount and tenor.
You are also assured of guaranteed returns and safety of your capital with ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating.
