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Grow Your Savings With Systematic Deposit Plan

With the Monetary Policy Committee keeping the repo rate of 5.15% and reverse repo rate of 4.90% 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 4 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 6 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 keep risk at arm’s length during the early stages of employment.

Reap returns at a rate of up to 8.35%
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% and 8.35% 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.

Type of customer Deposit amount per month (in Rs.) Deposit tenor
(in months)
Number of deposits Interest earned on each deposit (in Rs.) Monthly payout (in Rs.)
New customer 5,000 24 12 821 5,821
Existing customer 5,000 24 12 832 5,832
Senior citizen 5,000 24 12 848 5,848

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 3rd, 7th 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 4 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.

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