Mapping Your Financial Journey: Setting Milestones with Bajaj Finance
In life, we all have milestones that we hope to achieve. When it comes to our financial journey, these milestones may include paying off a debt, buying a home or car, or even retiring comfortably. But how do we turn these dreams into a reality? The answer lies in setting financial milestones and creating a plan to achieve them. One effective way to achieve these milestones is through fixed deposits.
Fixed deposits (FDs) are a type of investment that allows individuals to deposit a lump sum of money for a fixed period of time with a financial institution such as a bank or non-banking financial company (NBFC). In return, the individual earns a fixed rate of interest on their deposit. Fixed deposits are a relatively low-risk investment option, as the return on the deposit is fixed and unaffected by market volatility.
Types of Fixed Deposits:
- Cumulative Fixed Deposit: In a cumulative FD, the interest on the deposit is compounded and paid out at the end of the deposit tenure. This type of FD is ideal for individuals who do not require a regular income stream and are looking to save their money in the long term.
- Non-Cumulative Fixed Deposit: In a non-cumulative FD, the interest on the deposit is paid out at regular intervals, such as monthly, quarterly, half-yearly or annually. This type of FD is suitable for individuals who require a regular income stream from their investments.
- Tax Saving Fixed Deposit: Tax-saving FDs are a type of FD that offers tax benefits under Section 80C of the Income Tax Act. The investment made in these FDs can be claimed as a deduction from taxable income, up to a maximum limit of Rs. 1.5 lakh.
Comparison between Different Types of Fixed Deposits:
Cumulative FDs offer higher interest rates than non-cumulative FDs, as the interest earned is reinvested and compounded. However, cumulative FDs are not suitable for individuals who require a regular income stream from their investments. Non-cumulative FDs, on the other hand, offer regular payouts and are ideal for those who need a regular income stream. Tax-saving FDs offer tax benefits, which can reduce the tax liability of the investor.
Features of Fixed Deposits:
- Tenure: Fixed deposits have a fixed tenure, which can range from a few months to several years. The tenure of the FD determines its interest rate.
- Interest Rate: Fixed deposits offer a fixed rate of interest, which is generally higher than other savings accounts. The interest rate on the FD is dependent on the tenure of the deposit, among other factors.
- Liquidity: Fixed deposits are relatively low-liquidity investments, as the money invested is locked in for the duration of the FD. However, most financial institutions offer premature withdrawal options, subject to some penalty charges.
- Minimum Investment Amount: The minimum investment amount for fixed deposits varies across financial institutions. Some financial institutions offer flexible investment options, allowing investors to invest any amount they like.
Benefits of Fixed Deposits:
- Low Risk: Fixed deposits are relatively low-risk investments, as the investor receives a fixed rate of return regardless of market volatility.
- Fixed Returns: The return on fixed deposits is fixed and guaranteed, making it a safe investment option.
- Flexible Tenure: Fixed deposits offer flexible tenure options, allowing investors to choose a tenure that suits their financial goals.
- Higher Interest Rates: Fixed deposits offer higher interest rates than savings accounts and other low-risk investment options.
Fixed deposits are a popular investment option for individuals looking to save money and earn interest on their savings. A fixed deposit is a type of investment where you deposit a lump sum of money with a bank or financial institution for a set period of time. In return, you earn a fixed rate of interest on your deposit. The interest earned on fixed deposits is generally higher than other savings accounts, making it an attractive investment option. It is also a safe investment option as it is not subject to market volatility and provides a guaranteed return.
Fixed deposits also come with flexible tenures, ranging from a few months to several years. The deposit is locked in for the agreed period, which means that the interest rate and maturity amount are fixed. The interest earned on the deposit can be paid out monthly, quarterly, half-yearly, or annually, depending on the investor’s preference.
One major benefit of investing in fixed deposits is that it does not require any market expertise or knowledge. It is a simple investment option that is easy to understand and execute. Additionally, fixed deposits are also accessible to a wide range of investors, including students, retirees, and those with a low-risk appetite.
Bajaj Finserv’s Fixed Deposit is an excellent option for anyone looking to invest in fixed deposits. Their Fixed Deposit is a safe and reliable option that provides attractive interest rates with flexible tenures. The interest rate on their Fixed Deposit is higher than most savings accounts and is guaranteed to remain the same throughout the agreed tenure. Bajaj Finserv’s Fixed Deposit also comes with the option of a monthly payout, suitable for those who require a regular income stream. Bajaj Finserv app is a great fixed deposit app.
One of the great features of Bajaj Finserv’s Fixed Deposit is that it can be accessed through their mobile application. The Bajaj Finserv app provides customers with a user-friendly interface to manage their fixed deposit accounts. Customers can check their account balance, view their maturity amount and interest payment dates, and even opt for online renewal, making managing their fixed deposits hassle-free.
Apart from Bajaj Finserv, there are several other fixed deposit apps and options in the market. HDFC Bank offers its customers a variety of fixed deposit options with attractive interest rates and flexible tenures. ICICI Bank’s iWish flexible RD is another popular investment option where customers can deposit any amount at any time and choose a flexible tenure.
In conclusion, setting financial milestones and investing in fixed deposits is an excellent way to map out and achieve your financial goals. Along with Bajaj Finserv, there are several other fixed deposit options and apps available in the market. Regardless of your investment preference or risk appetite, there is a fixed deposit option that can cater to your financial needs and help you achieve your financial milestones. Start mapping your financial journey today with Bajaj Finserv’s Fixed Deposit or explore other options available in the market.