As an FD investor, it is understandable that you want the highest FD rates to earn more interest income. However, the interest rate on bank FDs has been on the downward slope since RBI announced a repo rate cut five times in 2019. Recently, RBI lowered the repo rate to 4%, which is an all-time low since the year 2000.
When RBI decreases the repo rate, it creates more liquidity in the banking system. As a result, banks also reduce the interest rate of all types of fixed deposit to balance the effect. This means that bank FDs may not yield the interest income as per your expectations. However, NBFCs like Bajaj Finance is one of the few FD issuers which are still offering the highest interest rate in 2020.
You can fetch interest rate up to 7.85% on Bajaj Finance FD. Given the current circumstances when bank rates are falling and the market is prone to uncertainty, it makes a wise investment decision to lock your money in Bajaj Finance FD.
High Interest Rate Should be Backed by Safety
Along with the high interest rate, make sure your FD investment is risk-free and gives assured returns. For instance, Bajaj Finance FD is known for its highest stability rating from ICRA and CRISIL. It is safe from market volatility. This means that your investment is also secure.
High Interest Rate Should Give Maximization of Returns
A good FD investment is one which allows you to grow your money over and above the high interest rate. If you invest in Bajaj Finance FD, it allows you to ladder your investment. Instead of putting all your money in a single FD, you can divide them into multiple FDs. Each of these multiple FDs will have different interest payment frequency and tenor. So, when you need to withdraw money in case of the liquidity crisis, you have to break only one FD and let the other ones remain invested.
If you chose to renew the FD after maturity period, Bajaj Finance rewards your re-investment with 0.10% additional interest rate.
Bajaj Finance FD also doesn’t levy any restriction on premature withdrawal. Unlike in a tax saving FD where your money is locked for five years, Bajaj Finance FD allows you to break your FD before tenor at a small penalty amount. So, your liquidity is not compromised at the cost of the highest FD rates.
Bajaj Finance FD is a sound investment option if you want high interest rate, safety and maximization of returns in a single fixed-income instrument. It offers up to 7.85% interest rate, one of the highest FD rates in 2020 when banks have lowered their interest rates and the market is vulnerable to instability. Bajaj Finance FD has also been accredited with the highest safety ratings by India’s top credit rating agencies. If you are looking to maximize the returns on your FD, you can consider laddering and auto-renewal options with Bajaj Finance. In a nutshell, a company FD such as Bajaj Finance FD is a rewarding investment choice for 2020. You can also use a fixed deposit calculator to predict your earnings before booking an FD. It also eliminates the need for manual calculation that is prone to errors.
To grow your savings at a high rate, you can invest in Bajaj Finance FDs that are providing an interest rate of up to 7.85% and 7.60% for senior citizens and regular investors respectively. These are one of the highest FD rates in 2020. These fixed deposit plans are safe as they are credited highly for their safety and stability by CRISIL and ICRA. Moreover, you can also access their multi-deposit facility to ladder your investments or you can invest in an SDP to earn more through the prevailing interest rates.