Advantages of Having a Bajaj Finance Fixed Deposit Account

Bajaj Finance Fixed Deposits are one of the most affordable, and convenient ways to invest your hard-earned money and reap great returns in the long run. Fixed Deposits are often seen as an instrument of safe investment as it helps you preserve and multiply money without any risks. You get steady returns compared to other similar financial instruments while investing in FD, along with special benefits for senior citizens.

If you are concerned about how much long-term returns you can get, Bajaj Finance also has the facility to calculate the interest on your principal amount by using a FD calculator. Here are some advantages which makes investing in a FD an ideal option:

Safety and Stability of Returns

In spite of the regular ups and downs in the market trends, FD investment offers a stability of the long-term returns. Companies like Bajaj Finance have the safety credibility rating which is accredited by CRISIL and ICRA. Other investment instruments like mutual funds and stocks are highly dependent on fluctuating market trends, whereas FD interest rates do not get affected by them. Bajaj Finance offers interest rates offer an attractive annual cumulative interest rate of 7.60% for a tenor of 12-23 months on a minimum deposit of Rs. 25000.

Flexibility and Liquidity

Bajaj Finance FD offers its customers a flexibility to choose from various tenures starting from 12 months and can go as far as 5 years. Depending on the type of FD you choose from Cumulative and Non-cumulative FD, the interest rates also vary from 8.40% to 8.13%, respectively which you can compute using the FD calculator. You can also withdraw cash from it before the amount matures, with a minimal withdrawal fee. Apart from that, you have the flexibility to take a matured FD and invest it again at an increased interest rate.

Tax and Risk Factor

The tenor for Bajaj Finance FDs can range anywhere from 6 months to 60 months. This gives you a guarantee of safeguarding your money for a longer period of time. The recent regulations by RBI has mandated the insurance on the investments made in FD. Herein, the investors are eligible for an insurance of Rs. 1 Lakh including the amount of principal and accrued interest. When it comes to tax benefits, the earned amount on FD is taxable. The income earned from interest which isn’t greater than Rs.10000 is exempted from tax. However, there are tax-saving FDs which provide a tax-exemption on a maximum earned income of Rs. 1.5 lakh. These FDs have a definite duration of 5 years in which they get matured. This way,  your fixed deposits not only reduce the risk you incur through investments,  but also taxes that you might have to pay on the returns. 

An important advantage you get while investing in a Bajaj Finance FD, is that you get an easily accessible loan against it which can help you during emergencies in the future. Also, you can also skip the payment of an additional withdrawal fee if you need an instant withdrawal. Instead of closing your FD account before it gets matured, Bajaj Finance offers you a personal loan which is 90% of the total amount of FD. Loan against FD provides you a reduced rate of interest to pay it off because it is secured with your FD account becoming collateral.