How to Grow your Savings with High FD Interest Rates from Bajaj Finance
Last Updated on May 31, 2023 by hassan abbas
It’s now easier than ever to grow your hard-earned cash. Investment prospects have never been more plentiful or accessible than they are now, thanks to digitalization. To fully benefit from these possibilities, however, you must diversify and strike a healthy mix between market-linked and safe-returning products. When it comes to the latter, a fixed deposit is a good alternative to consider. With this in mind, a Bajaj Finance Fixed Deposit provides competitive FD rates across the board and is a safe investment option. Interest rates on FDs are only one of the numerous reasons to consider investing in such products and learning how they may help you benefit.
Factors that affect returns on FD
Invest for the long term
When it comes to FDs, the greatest approach to get good returns is to keep your money in one for a long time. Compounding interest means that the longer you stay invested, the better your returns will be. Please keep in mind that the interest rates on your fixed deposit may vary depending on the tenor. Choose the longest tenor feasible to get the finest results. When the tenor is at least three years or longer, several banks or NBFCs provide high FD interest rates. Here’s an illustration of how it works and what you may anticipate in return. The table below illustrates the potential returns on an Rs. 2 lakh Bajaj investment.
Invest in a ladder
Another investing strategy you may use to make money with your savings is laddering. It’s a good strategy since it helps you to coordinate your investments with your other financial objectives. Instead of investing in a single FD, you invest in numerous FDs in a staggered fashion. For example, if you have three goals spaced out across three years, it’s a good idea to invest in each one separately. This way, you won’t have to rely only on your savings or salary to cover such costs. You may attain your objectives fast and effortlessly with the help of maturity returns. Laddering involves foresight, but with proper strategy, it may work in your favor.
Choose the best method of payment
You get to determine the frequency of interest payments when you invest in a fixed deposit. Financiers provide a variety of payment alternatives, including monthly, quarterly, bi-annually, yearly, and in a lump amount. As a result, you may adjust your returns to your objectives and effectively build your funds. If your main goal is to expand your corpus, the lump sum often delivers the best returns. Please keep in mind that the interest rate on your fixed deposit may change depending on the payment type you select. Financiers frequently offer slightly varying rates, so double-check before investing.
The age of an investor is also important when it comes to investing. It sets the interest rate that will be applied to the amount of the fixed deposit. When compared to normal fixed deposit interest rates, senior adults (those over 60 years old) can earn a greater rate of return.
In addition to these considerations, external economic situations might influence your applicable interest FD rates. Changes in repo rates or interest rates, on the other hand, do not affect the returns on your deposit once you’ve locked in existing FD rates.
The above mentioned are a few techniques to effectively produce money with a fixed deposit. Now all you have to do is choose the appropriate product, such as a Bajaj investment. It comes with hefty interest rates, up to 7.05 percent on five-year FDs
It also includes several services, including an online loan against a fixed deposit, a modest minimum deposit of Rs.25,000, and more. Invest in a Bajaj Finance online FD today to begin your adventure and benefit from one of India’s safest products.
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