Households with short-term liquidity needs may risk having their fingers burnt when handling stocks. In such a scenario, judicious asset allocation is of prime importance and recent statistics show a huge uptick in fixed deposit investments, with guaranteed returns being prized over higher growth of capital.
In this situation, Fixed Deposit has definitely become more popular, and families have now turned to these simple investment tools to protect their savings.
Assured returns with Fixed Deposit
In the past few months, the RBI has reduced repo rates several times, in order to promote higher liquidity. However, excess liquidity in the economy exerts downward pressure on deposit rates, thereby leading to reduced FD interest rates.
Amid falling FD rates, instruments like Bajaj Finance Fixed Deposit offer generous returns on maturity. In fact, regular citizens can get returns up to 7.60%, which goes up to 7.70% for existing BFL customers and up to 7.85% for senior citizens.
These fixed deposit interest rates vary for customer types, and the tenures chosen by them. To demonstrate this better, here’s a table with earnings forecasted for different tenures, if a customer deposits Rs. 20,00,000 in a Bajaj Finance Fixed Deposit.
Returns for tenure of 24 months
| Customer type | Initial deposit | Tenure | Interest rate | Maturity proceeds |
| New Customers | Rs. 20,00,000 | 24 months | 7.45% | Rs. 23,09,101 |
| Existing BFL Customers | Rs. 20,00,000 | 24 months | 7.55% | Rs.23,13,400 |
| Senior Citizen | Rs. 20,00,000 | 24 months | 7.70% | Rs. 23,19,858 |
Returns for tenure of 36 months
| Customer type | Initial deposit | Tenure | Interest rate | Maturity proceeds |
| New Customers | Rs. 20,00,000 | 36 months | 7.50% | Rs. 24,84,594 |
| Existing BFL Customers | Rs. 20,00,000 | 36 months | 7.60% | Rs. 24,91,534 |
| Senior Citizen | Rs. 20,00,000 | 36 months | 7.75% | Rs. 25,01,968 |
Returns for tenure of 60 months
| Customer type | Initial deposit | Tenure | Interest rate | Maturity proceeds |
| New Customers | Rs. 20,00,000 | 60 months | 7.60% | Rs. 28,84,638 |
| Existing BFL Customers | Rs. 20,00,000 | 60 months | 7.70% | Rs. 28,98,068 |
| Senior Citizen | Rs. 20,00,000 | 60 months | 7.85% | Rs. 29,18,305 |
By picking the right tenure with the FD calculator households can plan for their goals. FD interest rates with Bajaj Finance peak for tenures of 48 months or more and favour senior citizens. With a reduction in interest rates for savings schemes, senior citizens are one of the worst-hit, as they depend on periodic earnings to fund their regular needs. However, with Bajaj Finance FD, they can earn lucrative returns and continue to reap the benefits of periodic income.
With citizens withdrawing savings accounts due to low-interest rates, Bajaj Finance FD is one of the better-yielding avenues. Moreover, with the reduction of the TDS rate from 10% to 7.5% for resident Indians who have submitted their PAN details, Bajaj Finance FD can help increase earnings easily.
Convenience and safety of deposit
Even as depositors were rocked by a couple of recent bank crises, Bajaj Finance promises investment safety, courtesy of an environment deemed stable by high safety ratings of FAAA by CRISIL and MAAA by ICRA. These are the highest in their respective category and point to timely interest and principal payouts at the end of the tenure, which can be anything between 12 and 60 months.
Amid the uncertainty, families can prime their FD investments to avoid risk and put idle funds to good use. To get started, customers can book a Bajaj Finance Online FD today, before interest rates fall.
