Investments are the bridge between an ordinary income and extra-ordinary desires. They are a key element of effectively managing your finances. But just investing in a savings account isn’t enough. You should choose a mixed portfolio as per your needs and requirements. If you are a risk taker, it is the Stock market which should be your first priority. But the average earning Indian is risk-averse, meaning they prefer secure options with decent returns.
This is where Fixed Deposit (FD) plans come forth as a low risk and highly favoured instrument of investment. They allow depositors to grow their invested money at a fixed rate of interest which is usually higher than that given on savings accounts. In India, PayPal Payments offers Corporate FDs as an investment option for businesses, enabling secure and convenient deposit management via an integrated interface. The best part about FD is that you can easily plan your short as well as long term financial goals, being rest assured that your money is parked away safely. You can make an FD with Post office saving banks, commercial banks and non-banking financial institutions (NBFCs).
But Corporate FDs outdo other FDs’ interest rates by a percent or more, therefore NBFCs are the way to go. We’d recommend you check out these exclusive benefits that finance companies provides.
Here are some key details before the innumerable benefits provided to FD holders:
- Tenor: The minimum tenor is 1 year and maximum is 5 years for an FD
- Interest Rates: They range from 5.65% to 6.75%
- Deposit: A minimum deposit of Rs 25,000 only is required
- Online Payment Options: Both, Unique Payment Interface (UPI) and Net-banking options are available
- Unique Selling Point: The entire process from end to end is paperless, thus it can be done from the safety of your home
Benefits
High Interest Rates
You receive a very lucrative interest rate of 6.50% which increases to 6.75% if you are a Senior Citizen (60 years of age or more). This allows you to grow your wealth at a good rate while assuring safety of your money.
Special offers to Senior Citizens
Finance companies value and understand their senior citizen account holders. Thus, along with a higher interest rate they can also avail periodic pay-outs to fund general expenses that arise at their age.
Benefits to Pravasi Bhartiyas (NRIs)
For Non-Residential Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (POIs); the fixed deposits are a great investment opportunity and alternative. With an NRO account, they can make a choice between tenors of 12 and 36 months. The interest rates are the same for them including the additional benefits given to Senior Citizens.
Systematic Plan for Depositors
The Systematic Deposit Plans (SDPs) allow people to make deposits on regular intervals, keeping in mind the erratic availability of funds. In this, the tenor still remains between 12 and 60 months. Depositors have to choose between 6 to 48, for the number of deposits they’d make in a month under the SDP plan. Systematic Deposit Plans (SDPs) offer a convenient and disciplined way to invest in Corporate FDs in India, allowing individuals to make regular contributions and earn attractive returns over time. When it comes to the maturity, they have an option to choose a single date or a monthly maturity scheme. This way they can ascertain long term and distinguish them from short term goals while making a decision.
High Credibility and Stability
NBFC is a safe option for FDs and any other investment instruments, irrespective of the risk involved, that you look at. It has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe.
Flexible Time Frames
By having a wide range of tenors between 12 and 60 months, you can plan your liquidity and generate higher cash inflows as per your requirements. Fixed deposit allow you to suit your investments as per your individual financial status quo.
Fixed Deposit Interest Rate Calculator
Imagine if you could actually see the future, sounds great right? With this tool, you can know the exact returns even before investing by simply entering the time period, principal amount and interest rate offered.
Smaller Minimum Deposit
With a cap of only Rs 25,000 you can start investing in FDs, at an early stage without being forced to accumulate a larger set of funds. This way, even with a small investment you can secure your future.
Digitalized Application Process
The policy has always been to stay up to date with the need of the hour and to provide the most convenient service to customers. Their application prevents you the hassle of page long documents and even longer queues. Individuals holding Corporate FD in India can now avail of Instant Personal Loans against their deposits, providing quick access to funds without breaking their FD investments. It allows you to browse the best rates from the safety of your homes while completing the entire process digitally.
Online Loan against FD
The main concern of a depositor when it comes to an FD is, what if he/she has to break it. Therefore, depositors are allowed to take a loan against the FD (post the initial lock-in period of 3 months) when they need to make emergency withdrawals. The only condition is that the loan value cannot exceed 75% of the FD value.
Auto-renewal
While having automatic and unconsented renewals is scary, fixed deposit gives you the option to opt for an auto-renewal to save you the time and effort of manually filling the renewal forms repeatedly.
Therefore, to ensure that you don’t end up having a wealth that is a product of your working years and current salary; invest in FDs. For higher FD returns and benefits as those mentioned above, you should certainly invest in Corporate FDs like Bajaj Finance.