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Update: 07 June 2021 17:26 STI
Bombay (Maharashtra) [India], June 7 (ANI / NewsView): Term deposit is one of the most preferred financial investment tools available in the market.
Factors such as security of the amount invested, assured returns, ease of investment and payment options make it the ideal investment tool for risk averse investors.
In addition, a very profitable fixed deposit plan such as a Bajaj Finance Online FD offers lucrative returns over a longer period of time. However, deciding on the right time to place funds in a FD could be a difficult task due to the constant fluctuations in interest rates. In this case, staggering your deposits is a very effective idea, as it balances the effects of fluctuations in interest rates.
Laddered deposits for increased returns
FD Laddering is a simple investment strategy, in which investors place their money in several FD instruments of different durations to offset their risk. The technique essentially consists of dividing its funds and investing them in separate FDs, instead of locking the entire corpus in a single FD. This can be best understood with an example.
An investor wishing to invest Rs. 6,000,000 in a fixed deposit plan can divide the sum into 3 equal parts and invest the funds in 3 separate online Bajaj Finance FDs. Here the tenors for all FDs are different, starting with a one-year tenor to a three-year tenor.
This is what the investment table would look like.
The funds received at the end of each deposit can be reinvested in a new 3-year FD plan. When the first FD matures, it can be reinvested for an additional three years, maturing in the fourth year. This process can be continued until the third FD is reinvested in a 3 year deposit.
This creates an investment loop, allowing sufficient liquidity to be generated to meet financial needs. You can create your own phasing strategy based on respective goals and financial needs. With attractive FD rate provided by Bajaj Finance FD, you can easily grow your savings.
Simple and credible investment platform
There is no need to wait in long lines to submit documents, as investments can be made in Bajaj Finance’s online FD from the comfort of your own home. Bajaj Finance’s online FD form and cKYC document verification process will improve the overall experience. An additional 0.10% FD interest rate can be achieved by using this end-to-end paperless investment procedure. To confirm the returns that apply to the type of FD and tenor one has decided to go for, they can visit the Fixed Deposit Calculator page available on the Bajaj Finserv website.
Bajaj Finance Online FD is a haven for investing earnings. This can be verified by the high credit scores it has received from CRISIL (FAAA) and ICRA (MAAA), which are the major credit rating agencies in India.
FD laddering is a great way to maximize returns to maturity and minimize risk. It is recommended that you use a laddering strategy that is best suited to your financial goals, income, and cash flow needs. It is an ideal tool for anyone who wants to get the most out of their fixed deposit investment.
Bajaj Finance Limited, the loan company of the Bajaj Finserv Group, is one of the most diverse NBFCs in the Indian market, serving more than 44 million customers across the country.
Based in Pune, the company’s product offering includes sustainable consumer loans, lifestyle finance, digital product finance, personal loans, home equity loans, small business loans, home loans, credit cards, two and three wheel loans, commercial / SME loans Loans, securities lending and rural finance which includes gold loans and vehicle refinancing loans as well as fixed deposits. Bajaj Finance Limited is proud to hold the highest FAAA / Stable credit rating for any NBFC in the country today.
To find out more, visit: www.bajajfinserv.in.
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