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How To Grow Your Savings With Fixed Deposit?

By Staff
|

Amid high market volatility and rising inflation rates, investors seek a stable investment avenue that offers assured returns, to grow their savings. Fixed deposit is a preferred option for investors seeking assured returns on maturity. However, with the recent announcement of LTRO (Long-Term Repo Operations), banks have been reducing FD interest rates.

If you're still seeking lucrative interest rates to lock-in your deposit, NBFCs like Bajaj Finance Fixed Deposit are offering interest rates up to 8.35%. In fact, as of January 2020, Bajaj Finance has 2.2 lakh FD customers, with around 80,000 of these being senior citizens. What's more, their deposit book amounted to approximately Rs. 20,607 crore.

Nonetheless, in the FD landscape, both bank and company FDs offer features that aid wealth generation. If you're looking to grow your savings by investing in fixed deposit, here are some tips for helping you.

How To Grow Your Savings With Fixed Deposit?

Invest in company fixed deposit for more returns

When the goal is to generate wealth reliably and steadily over the course of time, then the NBFC FD is a great option to go with. This is mainly due to the fact that NBFC FDs typically offer higher FD interest rates in comparison to bank FDs, giving you the ability to truly build your wealth and combat inflation effectively. What's more, the new and optional tax regime offers concessional tax rates for those willing to forgo exemptions, thus giving you an opportunity to optimise your investment strategy for wealth building alone.

With Bajaj Finance, regular customers and senior citizens obtain rates of up to 8.10% and 8.35% respectively. There is also no fear of defaults or delays with this NBFC, as it is known to have '0' unclaimed deposits. Additionally, it has been awarded with the highest safety ratings of FAAA by CRISIL and MAAA by ICRA, which makes it the safest fixed deposit for you to invest in.

Take a look at what you can expect to earn through this FD.

New customer

Investment amount (In Rs.) Tenor (In months) Interest rate Interest earned (In Rs.) Maturity Amount (in Rs.)
15,00,000 5 8.10% 7,14,215 22,14,215
20,00,000 5 8.10% 9,52,286 29,52,286
30,00,000 5 8.10% 14,28,429 44,28,429

Senior Citizen

Investment amount (In Rs.) Tenor (In Years) Interest rate Interest earned (In Rs.) Maturity Amount (in Rs.)
15,00,000 5 8.35% 7,39,937 22,39,937
20,00,000 5 8.35% 9,86,583 29,86,583
30,00,000 5 8.35% 14,79,874 44,79,874

The above-mentioned results were generated using the Bajaj Finance Fixed Deposit calculator.

Auto-renew to get compounding interest gains

Another FD feature you should take advantage of when investing for wealth generation is FD Auto-renewal. Here, you can choose to reinvest your earnings at maturity automatically without needing to fill any additional forms. By seamlessly reinvesting your corpus, you continue to grow your wealth through the power of compound interest. Further, Bajaj Finance offers renewal bonuses, currently an additional 0.10%, giving you a way to augment your wealth further.

Monthly deposits with Systematic Deposit Plan

Another way to grow your wealth in a disciplined manner is to save with the Systematic Deposit Plan. Here, you make monthly contributions starting Rs. 5,000 per month, and each contribution counts as a new FD. You can choose to make 6 to 48 deposits with your FD tenor ranging from 12 to 60 months.

Additionally, it is also important to note that the tenor picked for your first deposit will apply for all subsequent FDs. For young-earners, this feature is exceptionally beneficial as it doubles-up as a savings-cum-investment scheme that can help them work towards wealth generation.

Armed with this information, employ any of the above-mentioned approaches to grow your wealth via a fixed deposit. To truly optimise your experience, partner with a leading issuer to get access to impressive interest rates and a range of features. You get this with Bajaj Finance and you can even take advantage of the Bajaj Finance Online FD facility to apply easily. So, what are you waiting for? Starting investing at the earliest and grow your wealth reliably!

Read more about: fixed deposit
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