The current FD interest rates in India are dwindling due to the downward slope in the economy around the world. The good news is that a fixed deposit is still a viable option for your investment portfolio. The reason is simple – it is safer than the growth-oriented market instruments. You can still earn lucrative returns, provided you invest in FD that yields high returns.
Due to frequent repo rate cuts by RBI and lack of demand in loans, most banks are shying away from hiking their FD rates. Even savings account and post office schemes have lost their sheen due to low-interest rates. Hence, investors are turning to corporate FD like Bajaj Finance. You can fetch up to 7.35% interest rate on Bajaj Finance FD – it is among the best rates you can get in 2020.
Moreover, Bajaj Finance is known for introducing advanced features on its FD schemes from time to time to suit the needs of investors; since its inception and even in the turbulent times. So, if you invest in Bajaj Finance FD, you will not only earn a high interest rate but also be able to maximize your effective returns.
Let’s take a look at how you can earn the highest interest rate on Bajaj Finance FD in 2020:
Book Online FD
Bajaj Finance has recently introduced contactless FD which allows you to invest online at the click of a button of your smartphone or computer. It just takes a few simple steps to book your FD online with Bajaj Finance. It saves you time and efforts on cumbersome paperwork. Bajaj Finance online FD brings you one more advantage – you can earn extra interest of 0.10% over and above the existing FD rates.
For instance, if you are non-senior citizen investing Rs. 5 lakhs for 3 years in Bajaj Finance FD through offline FD, you will get Rs. 1,14,240 as interest payout on maturity at 7.1%. However, if you invest online, you will get Rs. 1,15,963 as the interest payout due to 0.10% additional interest.
Invest in Cumulative FD
In a cumulative fixed deposit, the interest is compounded every quarter and re-invested along with the principal amount. However, the interest is paid only at maturity. This gives your investment a long time to grow and helps you build a corpus. The longer the tenor, the higher the returns.
Non-cumulative FD gives you an option for periodic payouts such as monthly, quarterly, half-yearly or yearly income but it will not build long-term capital as much as a cumulative FD will.
You can compare the returns on cumulative and non-cumulative FDs using Bajaj Finance’s fixed deposit interest calculator. This online calculator can also be used to estimate and compare returns across all FD issuers.
Ladder Your Investment
Understandably, you might need to withdraw your FD prematurely for emergency cash. But you tend to lose interest as well as need to pay a penalty. Laddering your FD can overcome these drawbacks. Bajaj Finance’s multi-deposit facility is based on laddering technique. It enables you to split your investment amount across multiple FDs having different maturity timelines and interest rate instead of a single lumpsum investment in one FD. This way, you can break only one FD at the time of liquidity crunch and let the rest of the FDs continue to earn the interest income. Laddering FDs will also help you benefit from the averaging of interest rates over a period of time.In addition to the above mentioned features, Bajaj Finance FD also offers high stability ratings of FAAA/Stable by CRISIL and MAAA/Stable by ICRA. This means your investments are never at risk and you will continue to earn high returns even if there are further repo rate cuts by the RBI.
