Invest Smartly: Strategise FD Investments for Better Returns

Fixed deposit has long been the go-to instrument for risk-averse investors looking for financial security and steady growth. In recent times, economic instability and revenue slumps have put a new shine on this traditional investment with young and old consumers looking to make the most of FD interest rates. With Fixed Deposit offering FD rates up to 6.85% and the year drawing to a close, now is the right time to plan investments for 2021 and beyond.

While the repo rate is holding steady at 4% right now, experts predict that it may fall further by March 2021 to revive the economy. This spells good news for borrowers in the future, but for depositors looking for stability in wealth creation as well as high Fixed Deposit rates, locking in at the current rates may be a smart move.

Here’s the best FD strategy to follow in present times to get the most from the investment.

Check FD rates and FD safety ratings before investing

The first step for investors is to ensure that the FD interest rates offered by their chosen issuer are high in comparison to market rates. Investors may normally find company FDs or FDs issued by non-banks to have higher rates than those of banks. However, it pays to also balance FD rates with the safety ratings of the institution as growing savings securely is the main draw of such an investment.

The Bajaj Finance FD not only offers high FD interest rates, from 6.60% to 6.85%, but also enjoys the highest safety ratings – CRISIL’s FAAA/Stable rating and ICRA’s MAAA (stable) rating.

Trusted by over 4 crore customers, this FD also offers other conveniences such as:

• Online loan against FD

• Auto renewal

• Invest via debit card

• Multi deposit facility

• Systematic Deposit plan

All this greatly enhances the experience of investors.

Book safely online

Online booking is the safest, quickest and the most convenient method of investing currently. One of the perks of the Bajaj Finance Online FD is that it not only facilitates a 100% digital, paperless method of investing, but also offers a 0.10% hike in the FD rates for online investors. While senior citizens can enjoy rates up to 6.85%, others can invest online to get Fixed Deposit rates of 6.70%.

Invest on behalf of seniors

A smart way to capitalise on the higher FD rates offered to senior citizens is to invest in an FD on behalf of parents/grandparents. Here’s a look at the comparative returns based on the FD interest calculator when consumers invest in a Bajaj Finserv FD based on their profile and investing method.

• Deposit amount: Rs.4,00,000

• Tenure: 5 years