When it comes to the question of investing life savings on to something reliable, fixed deposits have been the first choice for most Indians. This isn’t just because they’re safe, but also because they promise a decent rate of return. If you choose to invest with a credible institution, there’s the added security of that as well.
In general, it can be observed that NBFCs are slowly replacing banks in being a more popular destination for fixed deposit investments.
Non banking financial companies or NBFCs are a recent feature, but have been successful in making a great impact, thanks to the professional banking services they offer.
So if you’re looking to invest in fixed deposit, it can be wise to choose an NBFC over a bank.
Tips To Invest in Fixed Deposit
Here are a list of tips that can help you when investing on fixed deposits.
Fixed Deposit Interest Rates: The first thing that you need to know as an investor is the fixed deposit high interest rate on your investment. The entire exercise of keeping your money in a deposit will be futile, if you don’t make the right choice. Bajaj Finserv, a leading NBFC, offers one of the highest FD rates in India at 8.25%.
If you’re a senior citizen, you can get an additional 0.25% interest for deposits extending up to 1 crore.
Tenure: Keeping a large sum locked in for a long period is a good way of saving money, but it might not be practical for many of us. Therefore, it is essential to choose the tenure of the deposit with care. Bajaj Finserv has a fixed deposit scheme, in which the tenure can range anywhere from 12 to 60 months. This kind of flexibility with respect to the duration of deposits will make your decision-making a lot more easier.
Fixed Deposit Calculator: One of the major disadvantages of investing in a fixed deposit is the returns will be fully taxable if the interest amount exceeds 10000 rupees. If the entire process of manual calculation seems a bit difficult, then you can choose a Bajaj Finserv fixed deposit calculator to help you. Use FD calculator available on Bajaj Finserv’s portal and let you know the amount receivable as returns at the end of the maturity period.
Security: With fixed deposits, there’s always huge amount of money involved. In this regard, if there’s not enough security for your money, then there’s a danger of you losing the entire sum. Look for financial institutions that are reliable and have been around for quite some time now. Bajaj Finserv firstly, has a solid FAAA rating from Crisil which is a renowned credit-rating company and a MAAA rating from ICRA. So you can rest assured about where you’re actually putting your money into.
A good investment will always have your back if you’re ever in distress. This makes it all the more important to choose an investment plan that is beneficial to you personally. Other than just the method of investment, you also need to choose from where you’re going to invest. Choosing the right bank can be just as important as choosing the right method of investment, since your money will be locked in with them for a long period of time.
Fixed deposits are a great way to ensure that you have a leg up on the competition when it comes to securing your financial future. You won’t have to run around looking for loans and such when you’re in a financial crisis. This makes it all the more enticing when you’re planning for something big, like a vacation or retirement.