Increasing market volatilities and rising interest rates are an opportunity for investors to park their savings in a fixed deposit. For those who haven’t cushioned their portfolio with low-risk fixed-income instruments, now is the time to lock into Bajaj Finance Online FD.
Importance of laddering investments in Fixed Deposits
While Fixed Deposit is one of the safest investment options, the fluctuations in FD interest rates is a cause of worry for most investors. A viable solution is to ladder deposits, by setting a portion of savings aside, in different FDs with different tenors and maturity dates. It is important for these deposits to mature in successive years, and not all at once.
If an investor wants to invest Rs.10 lakh, it is best to split the investment into 5 different FDs amounting to Rs. 2 lakh each. The maturity dates for these deposits must be set in such a way, that each FD matures every year, for the next 5 years. On maturity, these deposits can also be renewed, depending on prevailing FD interest rates.
- Advertisement -
Bajaj Finance FD is a great option for investors seeking a balance of high returns and safety of deposit. Here are some benefits of laddering deposits with Bajaj Finance online FD.
Attractive interest rates
Bajaj Finance recently increased its FD interest rates and is now offering assured returns up to 7.25% to senior citizens. Investors can choose investment tenors from 12 to 60 months, to match their financial goals.
Heres a look at the latest FD interest rates, applicable for customers below the age of 60 and senior citizens.
Tenor (Months) | Non senior citizens | Senior Citizens |
12 – 23 | 5.98% – 6.15% | 6.22% – 6.40% |
24 – 35 | 6.41% – 6.60% | 6.64% – 6.85% |
36 – 60 | 6.79% – 7.00% | 7.02% – 7.25% |
Investors investing via the online mode get a rate benefit of 0.10% through the Bajaj Finserv website. By investing in a Bajaj Finance online FD, one can benefit from an end-to-end paperless process that takes just a few minutes.
In case interest rates go up in future, investors can benefit from higher returns on their next deposit. This way, laddering deposits can balance out the highs and lows over time and enable individuals to earn consistent returns.
High liquidity
Typically, when investing in FD, a steady sum of savings is locked in for a specific tenor. Hence, investors are unable to access their savings, until maturity. However, by laddering deposits, one can create a staggered income ladder that caters to their liquidity needs.
Thus, one can ensure adequate liquidity, while also getting the best returns on their deposit. A good way to plan laddering of deposits with Bajaj Finance online FD, is to use the FD Calculator online to know the maturity amount from each FD, and fund unforeseen expenses easily.