Investors always look forward to an FD for their secured and guaranteed return policies. Fixed deposits give you a guaranteed return, calculated with a fixed rate of interest on your principal amount for a pre-defined duration. It is independent of the markets rates, and as an investor, you can choose the best scheme depending on your funds, tenure and returns.
FD interest rates have been static for most of the time. However, Bajaj Finserv took a bold step to hike the interest rates for their customers. It presents a unique opportunity for both the investor and the company; with higher interest rates, FAAA and MAAA rating from CRISIL and ICRA, they are regarded as one of the safest financial institutions to partner with.
Bajaj Finserv offers market leading FD interest rates of 8.10%, which can go to up to 8.60%. This increases even more for senior citizens; they are eligible for an additional rate of interest of up to 0.35% above the regular rates.
Banks and NBFCs calculate interest rates depending on various factors. As an investor, you should have a brief idea about some of the key ones.
- Economy –
The most potent way to measure economic condition of a nation is to look at its gross domestic product or GDP ratings. Ideally, GDP should increase each year; this means that the country is prospering.
Increasing GDP also provides a stable interest rate for investors. As the demand for money increases among people, more and more people will start looking to invest for a better future. This creates a better opportunity for secure long-term investments like an FD.
- Monetary policies –
India’s monetary policies are determined by her central banking entity, RBI. They regulate financing institutions all over the country, determining their repo rate, and other important factors.
An increase in the repo rate will lead to an increase in interest rates and vice versa. Companies like Bajaj Finserv increase their FD interest rates according to the benchmark rates. It serves as an important parameter by which financial institutions decide in what rate they will lend and how much they will pay as interest on their FD.
- Recession and inflation –
Like most other central banks all over the world, RBI uses interest rates to control inflation. By increasing the interest rates, they encourage people to save more and spend less on luxury goods and services.
Higher FD interest rates generally indicate a better and stable economy. With an 8.10% to 8.60% interest rate, Bajaj Finserv offers excellent opportunity to save for your future in an FD scheme.
A fixed deposit scheme not only gives you a safe and promised investment scheme, but it also offers you multiple advantages over a normal bank account. Like Bajaj Finserv, a leader in the market of investment banking, who has gone completely digital. You can now apply for a new account online, with an easy and quick application process, minimum documentation, and convenient online access.
With an FD account, you will be eligible for multiple facilities. Let’s take a look at some of them.
Tax savings –
One of the most exciting features of a fixed deposit is its tax saving facility, and the most suitable policy for this will be Bajaj Finserv Fixed Deposits. They offer a five year maturity period with which you will be eligible for tax deduction under section 80C; while availing the benefit of a higher than usual interest rate on your FD.
Tenure flexibility –
You, as an investor, get complete control over the maturity period of your fixed deposit. As an example, Bajaj Finserv offers tenure between 12 to 60 months, where they have increased their interest rates for deposits ranging from 36-60 months. Now they are offering 8.35% interest rates for existing customers and 8.10% for new customers.
They also offer an increased rate of interest for their 15-month period fixed deposits; these rates are now higher by 0.10% than normal FDs. Calculate your returns with an FD calculator to know whether this will be a suitable plan for you.
Customisable maturity period offers an investor to maximise their return while growing the invested amount. You can use an FD calculator to determine the optimum investment period for your fixed deposit.
Term deposits of Bajaj Finserv now start with Rs. 25,000 only, giving you the opportunity to invest in one of the best long-term investment plans in the market. With such an attractive offer and hiked fixed deposit interest rates, they are poised to take the place of the best financial institution in the market.