Investing your hard-earned savings in financial tools is a sure-shot way of beating inflation and growing your savings over time. When shortlisting a tool to park your funds, you must consider critical pointers. Risk appetite, applicable interest rates, liquidity requirements, earnings, financial goals and market conditions, etc., are a few variables that you must compute before locking in your funds in any instrument. While the market-linked instruments like stocks, mutual funds and crypto give you higher returns, they also come with the inherent risk of eating into your initial capital. Going from a mid-risk to a low-risk instrument can cancel out this risk. Financial advisors always suggest diversifying investments to mitigate risks.
A fixed deposit with high Fixed Deposit interest rates is a perfect tool to invest in when you aim to grow your savings and diversify your portfolio. With the dynamic changes in the market, the humble fixed deposit is under the spotlight as a perfect tool to invest in to safeguard your earnings. Read on to know more about why this is the right time to invest in an FD.
Five reasons why this is the right time to invest in a fixed deposit:
1. Mitigate risk and diversify the portfolio
In light of the current dynamic market movements, it becomes essential to reserve a chunk of your savings to invest in fixed-income instruments like a fixed deposit that has a constant interest rate throughout your chosen tenor. It will ensure capital preservation and interest gains per your applicable FD rates.
2. Repo rate change
The Monetary Policy Committee (MPC), governed by the Reserve Bank of India (RBI), revised the repo rate on 4th May 2022. They increased it to 4.40% from 4% due to inflationary concerns. With the sudden hike in repo rate by 40 bps and Cash Reserve Ratio (CRR) by 50 basis points to 4.5%, interest rates on fixed income instruments like fixed deposits were speculated to rise. Hence, now investing in a fixed deposit is an intelligent choice, as they will likely offer higher FD rates.
3. The overall increase in FD rates
With the increase in repo rate, Banks and NBFCs offering FDs across the country have hiked their FD interest rates. They are making this the ideal time to take advantage of a higher rate regime and earn more than you usually could have. Bajaj Finance hiked their FD interest rates as well. Citizens under the age of 60 can earn up to 7.20% p.a., and senior citizens get an additional 0.25% p.a. on their investments, totalling the applicable interest rates up to 7.45% p.a. on each deposit.
4. Stable investment tool
Since these are not linked to market movements, the rate at which you book an FD remains constant throughout the tenor making it a safe instrument to invest in. Most Bank FDs and Post office FDs are backed by the government, making it inherently safe to park your hard-earned savings. Whereas, while investing in FDs offered by NBFCs, one must always check the safety ratings bestowed by the leading rating agencies like CRISIL and ICRA.
5. Estimate returns in advance
Using an online FD calculator can easily calculate your returns at maturity. When you know how much you will earn at the end of the tenor, you can alter your tenor and initial deposit accordingly to achieve your financial goals seamlessly.
Considering the points mentioned above, it is clear that now is more than an ideal time to invest in this tool. But with multiple FD options available in the market, investing in the right one can seem daunting.
Here’s a quick lowdown on why the Bajaj Finance Fixed Deposit is the perfect FD investment option.
1. Minimum initial deposit amount
You need not have a large corpus to invest in an FD with Bajaj Finance. With just Rs. 15,000 in your account, you can easily book an FD and grow your savings.
2. Flexible tenure
Bajaj Finance FD offers flexible tenures from 12 to 60 months to investors, along with special tenors holding higher return rates like 24, 33 and 44 months.
3. Attractive FD interest rates
Benefit from a higher rate regime. Avail of rates up to 7.20% p.a. on your deposits if you are in the age bracket below 60. If you are a senior citizen looking to invest in an FD with Bajaj Finance, you can enjoy returns up to 7.45% p.a. on your deposits.
4. Loan against FD facility
Get an easy loan against your FD when facing a cash crunch or in the case of an emergency. All of this in just under a few minutes and without liquidating your investment.
5. Credible investment tool
Bajaj Finance has been accredited with the FAAA and MAAA and awarded by CRISIL and IRCA. These ratings indicate the highest safety for your money.
6. Online investment process
With an easy 100% online investment process, investors can conveniently book an FD from anywhere at any time.
Why wait any longer? Invest in a Bajaj Finance online Fixed Deposit to make most of your savings.
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