In today’s times of rising oil prices and volatile markets, retail inflation indices in India have risen from 4.1% in January-2021 to 5% in February-2021. Increasing fuel prices are likely to exert further pressure on inflation indices, which may restrict the Reserve Bank of India (RBI) from making further repo rate revisions.
The present repo rate however, is already very low at 4%, which is why financiers have been offering very low interest rates on deposits and savings accounts. Even interest rates on government savings schemes have been significantly reduced.
In the past few months, India has witnessed one of the worst scales of job losses and pay cuts. Such financial events have put the spotlight back on the need to create an emergency fund, which is one of the most basic financial planning principles.
Grow your savings with Fixed Deposit
The best way to get started, is to set aside a portion of your regular monthly income towards building your savings. But, at a time when markets are increasingly volatile, investing in market-linked investment instruments can be risky.
It is better to choose an option like fixed deposit, which offers assured returns without any effect of market volatilities. While risk-averse investors look to safeguard their savings, those investing in market-linked instruments can de-risk their portfolio by investing in FD. When choosing the right FD, it is important to choose the one offering a balance of high returns and safety of deposit.
One of the best options to get started with, is Bajaj Finance Fixed Deposit.
Bajaj Finance FD offers inflation-beating returns up to 7.25%, which come with the assurance of guaranteed returns sans any delay or default. Read on to know how to grow your savings easily with a Bajaj Finance FD.
Invest in a Bajaj Finance online FD
Bajaj Finance offers interest rates up to 7% to non-senior citizens investing via offline mediums. And there is a 0.10% rate benefit for these non-senior citizens, if they choose to invest online through the Bajaj Finserv website. Thus, by investing online, you can grow your savings furthermore and get higher returns on your investment.
Choose longer tenors
Bajaj Finance offers flexible tenors ranging from 12 to 60 months, which offers you the flexibility to plan your investments according to your investment horizon. The interest rates offered by Bajaj Finance are higher for tenors of 36 or more months, which can help you gain more returns.
To help you see how your returns grow for different tenors, here’s an example wherein an amount of Rs. 10,00,000 is invested in a Bajaj Finance online FD for different tenors. See how your returns and maturity amount vary for different tenors.
Returns on investing Rs. 10,00,000 in a Bajaj Finance online FD
| Investment amount (Rs.) | Tenor (years) | Interest rate (%) | Interest payout (Rs.) | Maturity amount (Rs.) |
| 3,00,000 | 1 | 6.25% | 62,500 | 10,62,500 |
| 3,00,000 | 2 | 6.70% | 1,38,489 | 11,38,489 |
| 3,00,000 | 3 | 7.10% | 2,28,481 | 12,28,481 |
| 3,00,000 | 4 | 7.10% | 3,15,703 | 13,15,703 |
| 3,00,000 | 5 | 7.10% | 4,09,118 | 14,09,118 |
Thus, you can see how returns on your deposit grow for longer tenors. You can also consider planning your investments better with FD return calculator, to maximise your savings easily.
Choose payouts at maturity
For those looking to grow their savings furthermore, choosing payouts at maturity is a good way to grow your corpus easily. Due to the effect of compounding, the maturity amount is higher, as the final interest payout includes principal amount and the interest earned on the sum of your principal amount and earned interest.
In the present economic scenario, the market is subjected to risk factors and constant swinging of stock indices. Here’s where Bajaj Finance FD can be a wise choice for when you seek guaranteed returns. Make a smart choice and grow your savings easily with a Bajaj Finance online FD.
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