As predicted by economists, the Monetary Policy Committee, in its bi-monthly meeting concluded on 6 August 2021 has chosen to maintain status quo on the repo rate. It remains fixed at 4%, a figure it first touched in May 2020. The low repo rate is expected to stimulate growth and aid the current economic scenario. While the low repo rate allows for the easy flow of liquidity in the economy, it forces investors who prefer fixed-income instruments to make a strategic decision.
Invest in a Bajaj Finance online FD as repo rate remains unchanged
With the repo rate pegged to a record low for a seventh straight time, interest rates on fixed-income instruments are also modest. Hence, choosing the right fixed-income instrument becomes paramount. Financial instruments like the Bajaj Finance online Fixed Deposit still offer returns at up to 6.75%. This FD gives one the ability to grow their savings safely and mitigate risks.
Read on to know more about why one should consider investing in a Bajaj Finance online FD:
Earn up to 6.75% p.a.
As a non-senior citizen one can enjoy high FD interest rates up to 6.50%, and up to 6.60% if investing online. Senior citizens get a 0.25%-higher rate, taking the FD rate up to 6.75%. Locking into this rate can help investors earn safely through the tenor and insulate themselves from any further downward pressure on FD interest rates.
Here is a table indicating how one can build their savings with Bajaj Finance FD.
Customer profile
Investment amount
Interest rate applicable
Tenor
Maturity amount
Non-senior citizen investing online
Rs. 25,00,000
6.60%
60 months
Rs. 34,41,328
Senior citizen
Rs. 25,00,000
6.75%
60 months
Rs. 34,65,608
Investors can use the FD calculator to work out other combinations of the initial deposit and tenor to forecast their earnings with ease.
Credibility and safety of returns
The Bajaj Finance FD carries the highest credibility ratings from both ICRA and CRISIL. The MAAA and FAAA stability ratings it holds assures investors of a default-free investment experience and timely interest and principal payouts. While one can earn more when they opt for payouts at maturity, investors can also choose to receive regular payouts for funding recurring expenses.
FD Laddering
Economists expect the MPC to start bumping up the repo rate during the next financial year and raise it to 4.50% by end-March 2023. This could help fixed-income rates increase and to prepare for a potential increase in FD rates one can ladder their FDs. Here, instead of investing in one FD, investors can divide their investment amount over multiple FDs of different tenors.
To take the example cited above, one can invest Rs. 25 lakh evenly in 5 FDs, having tenors of 1, 2, 3, 4, and 5 years respectively. When the first one matures they can reinvest part of the proceeds in an FD of 5 years; when the second matures, they can invest in an FD of 4 years, and so on. The result is that investors will:
Benefit from more current FD rates
Set up a steady stream of liquidity
Small monthly deposits
Another way to earn at current FD rates is to start a Systematic Deposit Plan. This is like an SIP, but without the risk factor involved. All one needs to do is make contributions of Rs. 5,000 or more each month. Each contribution goes towards the creation of an FD that earns interest at a rate prevailing on the date of deposit. One can choose to receive payouts month on month with the monthly maturity scheme or on a fixed day with the single maturity scheme.
Investing in Bajaj Finance FD offers one a way to earn at an attractive rate while not having to worry about market fluctuations. For a contactless investment, invest in a Bajaj Finance online FD today. It’s the quickest and most profitable way of growing one’s wealth in this safe instrument!
