4 reasons to grow your savings with Systematic Deposit Plan

With the Monetary Policy Committee keeping the repo rate of 5.15 per cent and reverse repo rate of 4.90 per cent untouched, FD investors need not fear a drop of FD rates due to pressure of the Indian economy.

With vehicles like the Bajaj Finance Fixed Deposit, you can continue to earn interest at a competitive rate of return. While this instrument provides seasoned investors a means towards diversification, it gives young earners a route to build their savings concretely.

In fact, you can grow your savings through small monthly contributions and needn't wait to accumulate a lumpsum. You can do this by saving a portion of your salary in an FD through the Systematic Deposit Plan feature.

 

Here are four reasons to do so.

Earn through contributions of Rs 5,000.

Generally, FDs require you to invest a lump sum at once and putting aside such a large amount isn't an easy undertaking. However, investing your money is important for wealth generation and combating inflation.

Now, with a Systematic Deposit Plan, you can save a part of your income every month in an FD and thereby, build your savings. Here, you can start with monthly contributions of just Rs 5,000 and take back yields after 12 to 60 months. Through the feature, you can choose to make between six and 48 deposits.

Benefit from high stability ratings

A key reason to park a percentage of your salary earnings a Bajaj Finance FD is that here you enjoy a safe environment. The FD carries ICRA's 'MAAA' and CRISIL's 'FAAA' rating, indicating that it is both reliable and capable of delivering the promised earnings at the specified time.

This is crucial, especially if you are a young earner, as you would want to keep risk at arm's length during the early stages of employment.

Reap returns at a rate of up to 8.35 per cent

Each contribution you make through a Systematic Deposit Plan creates a new FD and at present, regular and senior citizens can earn at a rate of up to 8.10 per cent and 8.35 per cent respectively.

Further, the interest you earn on each FD is based on the interest rates that are prevailing on the day that the FD is booked, helping you benefit from positive shifts. The rates peak for tenors of at least 36 months and when interest is payable at maturity.

To understand how you can grow your savings through a Systematic Deposit Plan, consider this example.

If you tally the figures by considering the earnings of 12 deposits, you'll see that:

New customers earn total interest of Rs 9,852 and get a net payout of Rs 69,852.

Existing customers earn total interest of Rs 9,984 and get a net payout of Rs 69,984.

Senior citizens earn total interest of Rs 10,176 and get a net payout of Rs 70,176.

These results were calculated using the SDP calculator, and you too can use it to plan your savings to a T. When planning, remember that you can make contributions on either the third, seventh or 12th of the month. However, the date you choose to make your first deposit applies to all subsequent deposits.

Possess options for liquidity

Generally, you set aside the unused portion of your income for emergencies and parking it in an instrument could leave you without access to liquid funds.

However, this isn't the case with the Bajaj Finance FD as you can opt to take a loan against your FD at any time. Additionally, you can also prematurely withdraw from any of your deposits, as per your need, and leave the others undisturbed.

An easy route towards growing your savings, a safe environment, a competitive rate of return, and access to liquid funds are four benefits you get when you start a Systematic Deposit Plan with Bajaj Finance.

Further, with the Monetary Policy Review not issuing a change to the repo rate, now is a good time for you to begin making small monthly contributions. To start today, simply fill an online application form.

This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article.