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Crafting an effective investment strategy utilizing Bajaj Finance Fixed Deposit

Read on to know about these strategies and how they could help you make the most out of a Bajaj Finance Fixed Deposit.  

studio18 Last Updated:July 24, 2023 11:57:19 IST

Fixed deposits are low-risk investment avenues that offer stable returns. Most financial institutions offer competitive interest rates, providing you substantial interest earnings. Among the top offers are the Bajaj Finance FD rates, which go up to 8.60% per annum.

However, planning your investment smartly is crucial to ensure the financial growth you envision. For this, you need to consider a few things, from your risk tolerance to your goals. There are several strategies you could adopt to optimise your investments and maximise your returns.

Read on to know about these strategies and how they could help you make the most out of a Bajaj Finance Fixed Deposit.  

6 Strategies to Invest Effectively 

Being strategic with your investments means holistically considering your goals, finances, investment vehicles, and more. Here are a few tips to help you get started. 

Understand Your Financial Objectives

The first step is evaluating and setting your goals. This includes the reasons for your investment and when you expect the maturity amount. Whether you are saving for your child’s education or a special vacation, you need to understand the objective and plan accordingly. 

Doing so will help you determine the amount you need to invest and the appropriate timeline. The Bajaj Finance Fixed Deposit offers flexible tenors ranging from 12 months to 60 months, enabling you to save for short- to mid-term goals. 

Remember, the Bajaj Finance FD rates will vary depending on the tenor you choose. Generally, lower tenors have lower rates and vice-versa. But if you need a substantial amount in the short- to mid-term, you could deposit a bigger amount.

It should be noted that the interest you earn also depends on the type of FD you choose. For example, for a non-cumulative ₹30 Lakh FD, the interest per month is lower than the total interest earned on a cumulative FD. 

Evaluate Your Financial Standing 

Another essential point that could help you make the right investment decision is evaluating your financial standing. This includes your financial obligations and the amount you put toward investments. 

Since fixed deposits lock-in your funds, you can’t access them until the end of the tenor. Keep in mind that issuers do allow premature withdrawal, however, this facility has a penalty which could affect your returns. As such, it is essential to invest wisely, and in a manner that doesn’t impact your other obligations. 

Choose the Payout Option Based on Needs

Fixed deposits have two types, cumulative and non-cumulative. In cumulative FDs, the interest payout is at the end of the tenor. However, in non-cumulative FDs, you receive payouts at periodic intervals. 

Cumulative options are best when you don’t need frequent access to funds. They also enable you to leverage the power of compounding as the interest earned gets reinvested. Non-cumulative FDs are better when you need a periodic inflow of funds. 

Keep in mind that the Bajaj Finance FD rates and other financial institutions’ rates for a cumulative FD may be higher than those for non-cumulative FDs. This ultimately affects your maturity amount, so choose accordingly.

Diversify Your Investment Portfolio

An essential reason for portfolio diversification is that it spreads the risk, allowing you to minimise the exposure and secure your returns. It enables you to leverage the returns from one avenue against a loss or the underperformance of an investment. So, you need to invest in instruments which have different risk levels and investment horizons.

Assess Your Tax Obligations

Evaluating your tax implications is also an essential part of making an investment strategy. This is because when you pay taxes, your actual earnings are reduced. The interest you receive from FDs is taxable if the annual earnings exceed ₹40,000. This has been extended to ₹50,000 if you are a senior citizen. 

If you do not assess the tax obligations associated with an FD, it might result in a hefty tax amount, which could affect your final returns.  

Use Online Calculators and Tools

Several issuers offer FD calculators to help you estimate the maturity amount and returns. With this, you can understand if the ₹30 Lakh FD interest that you earn per month is suitable for your needs. Alternatively, you could check if the total interest earned lines up with your goals, in case of a cumulative FD. 

If the earnings are not adequate, you can modify your investment terms. This type of planning is only possible if you have accurate and reliable information. In this case, the FD calculator offers such information, and it is free to use.  

Features and Benefits of Bajaj Finance Fixed Deposit 

Check out some features and benefits of a Bajaj Finance Fixed Deposit that make it a worthy savings tool to consider.

Attractive interest ratesHigh credit ratingsMultiple payout optionsFlexible investment tenorLow minimum investment

Eligibility Criteria for Bajaj Finance Fixed Deposit 

Before booking an FD, check out the Bajaj Finance Fixed Deposit eligibility criteria. Here are the parameters you need to meet: 

Indian residentSole proprietorships, partnership companies, and Hindu Undivided Families (HUF)Member of a society, club, association, or family trust

You could also contact a Bajaj Finance representative if you are a Non-Resident Indian (NRI), Overseas Citizen of India (OCI), or Person of Indian Origin (PIO).

Documents Required for Bajaj Finance Fixed Deposit

Here are the documents required for booking a Bajaj Finance Fixed Deposit.

PAN cardKYC document: Aadhaar card/Voter ID/Passport/Drivers licence

The above are general document requirements. Depending on the entity (individual, HUF, etc.,) you invest as, you may need to submit additional paperwork. You can check the list on the issuer’s website before booking an FD.

Booking a Bajaj Finance Fixed Deposit is a smart decision since you can access various features and benefits. Remember to use the above strategies to maximise your financial growth through the current Bajaj Finance FD rates on offer.

This is a Partnered Post.