Before seeking higher interest rates at Term Deposits, it is imperative to know more about them. It would also be beneficial to have know-how about an alternative investment option like Fixed Deposits (FDs). Fixed Deposit Plans are, in fact, a type of Term Deposit.
Hence, increasing your Term Deposit Interest Rates or getting higher ones is the same as better FD rates. To get higher interest rates, you must understand the prevailing market conditions. This can be done by using 5 precious tips which are as follows:
- Choosing Corporate FDs over Post Office and Bank FDs: As of July 2021, the average FD rate was 5.50%. Among the reputed bank fixed deposits, the average rate of return range is from 4.5-5.25%. While post offices outdo these by going as far as 5.70%, it isn’t worth it. The reason being that it is Bajaj Corporate FD that is clearly above 6% for most time periods. Hence, it is Non-Banking Financial Companies like Bajaj that steal the show and must be chosen over banks and post offices. All to get higher Term Deposit Interest Rates. Not to forget that they also offer better Fixed Deposit Plans.
- Longer terms imply higher interest rates: It takes basic economics and finance to understand that long term investments have a larger fluctuation probability and hence offer higher interest rates. For fixed deposit plans, the higher interest rates for longer periods are to compensate depositors against Inflation.
The following image depicts how both the above tips are true especially for Bajaj Finance Corporate Fixed Deposit Plan:
Apart from the above, there are other strategies to help you get effectively higher interest rates or rather better returns. One such way is:
Laddering of FDs: FD laddering is a simple investment strategy, wherein investors park their money in multiple FD instruments of varying tenors to offset their risk. The technique essentially involves dividing one’s funds and investing them in separate FDs, instead of locking in the entire corpus in just one FD.
Bajaj Finance FD stands out not only due to higher rates but several features:
- Tenor: Minimum tenor is 1 year and maximum is 5 years for an FD at Bajaj
- Interest Rates: Range from 5.65% to 6.75%
- Deposit: A minimum deposit of Rs 25,000 only is required
- Online Payment Options: Both, Unique Payment Interface (UPI) and Net-banking options are available
- Unique Selling Point: The entire process from end to end is paperless, thus it can be done from the safety of your home
High Interest Rates: At Bajaj Finance, you receive a very lucrative FD interest rate of 6.50% which increases to 6.75% if you are a Senior Citizen (60 years of age or more). This allows you to grow your wealth steadily as well as safely.
Special offers to Senior Citizens: Bajaj FDs value and understand their senior citizen account holders. Thus, along with a higher interest rate they can also avail periodic pay-outs to fund general expenses that arise at their age.
Benefits to Pravasi Bhartiyas (NRIs): For Non-Residential Indians (NRIs), with an NRO account, a wide range to choose between tenors of 12 and 36 months is available. The interest rates are the same for them including the additional benefits given to Senior Citizens.
Systematic Plan for Depositors: The Systematic Deposit Plans (SDPs) launched by Bajaj allow people to make deposits on regular intervals, keeping in mind the inconsistent availability of funds. In this, the tenor still remains between 12 and 60 months. Depositors have to choose between 6 to 48, for the number of deposits they’d make in a month under their SDPs at Bajaj FD.
High Credibility and Stability: Bajaj Finance is a safe option for FDs and any other investment instruments, irrespective of the risk involved, that you look at. It has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe.
Flexible Time Frames: By having a wide range of tenors between 12 and 60 months, you can plan your finances and generate higher liquidity according to your requirements.
Smaller Minimum Deposit: With a cap of only Rs 25,000 you can start investing in FDs, at an early stage without being forced to accumulate a larger set of funds. This way, even with a small investment you can start your journey of saving to secure your future.
Digitalized Application Process: At Bajaj, the application process allows you to browse the best rates from the safety of your homes while completing the entire process digitally. Adding to this the CKYC efficiency, both time and effort are saved.
Online Loan against FD: Depositors are allowed to take a loan against the FD (post the initial lock-in period of 3 months) when they need to make emergency withdrawals. The only condition is that the loan value cannot exceed 75% of the FD value.
Auto-renewal: You can opt for an auto-renewal to save you the time and effort of manually filling the renewal forms repeatedly. It is completely voluntary and you’re still in control. The only thing that is eliminated is a waste of time and effort on your end.
In general, since Bajaj Finance Corporate FD offers the best rates and several other benefits- it is the ideal investment opportunity. Acquiring higher interest rate Term Deposits is easy if the above tips and option are used.