A fixed deposit is one of the most popular and safest investment options for investors across all age groups. It has stood the test of time as an investment avenue. The assurance of guaranteed returns and the safety of the investment make it a preferred investment option for all types of investors.
Even investors who have an inclination towards market-linked instruments, tend to diversify their portfolio by allocating some portion of their portfolio to fixed deposit investments. Fixed deposits not only provide assured returns but also help you in offsetting the risks of market linked investments such as equity, mutual funds, etc in your portfolio.
Let us take a look at some distinguished benefits of fixed deposit investment:
- Monthly interest on FD
With a non-cumulative FD, you can get monthly interest on fixed deposit. The most important aspect of this benefit of fixed deposit is that you can choose how you want your interest. There are various periodic options available when you invest in fixed deposits. You can choose from monthly, quarterly, half-yearly and yearly interest options.
- Availability of online tools
Companies such as Bajaj Finance provide you with online tools like the online FD calculator if you don’t know how to calculate fixed deposit interest. It is very convenient these days to know how much interest your fixed deposit will give you at the end of maturity. And you can even invest through the online application process. Once you apply through the online application process one of the representatives from the company will get in touch with you.
- Loan on fixed deposit
You don’t have to worry about withdrawing your investment during an emergency, which is of great concern to most investors while investing in a fixed deposit. The benefit of fixed deposit is that if you invest in fixed deposit you can avail a loan of 75% of FD value.
- High FD interest rates for senior citizens
Almost all financiers give priority to senior citizens. Higher FD interest rates for senior citizens along with the option of availing periodic interest payouts make FD a preferred investment option for those looking to secure their post-retirement life.
- Multi deposit facility
Bajaj Finance provides a multi deposit facility which you can choose while filling your FD application form. You can choose to pay for multiple deposits through a single cheque payment. You can choose different payment frequencies for your different FDs. Which means you can withdraw one of the FD, before maturity while keeping all the other deposits safe.
Company FDs with a good credit rating by agencies such as ICRA and CRISIL ensure that your money is in safe hands and you will get the amount due to you upon maturity. Bajaj Finance FD has a credit rating of FAAA/Stable by CRISIL and MAAA/Stable by ICRA, one of the highest ratings in the industry given to any fixed deposit investment. Thus, you are assured of guaranteed returns even when if the economic condition is very volatile.
As the economy is going through a tough phase in 2020 and the stock markets have been extremely volatile, it is imperative for investors to park some portion of their funds towards fixed income investments such as a fixed deposit. Experts have indicated that there is a strong likelihood of the global economy going into recession. In such a scenario, it will be helpful to have an investment avenue that offers you the benefit of periodic payouts along with high interest earnings. A fixed deposit investment meets all these criteria.