Fixed Deposit is one of the most popular & widely used investment products in India. This financial instrument is facilitated by both Banks and Non-Banking Financial Companies (NBFC), who provide a fixed interest return on investment higher than savings and current account deposits for the pre-defined duration of the investment.

There are two Modes of Earning Interests on Fixed Deposits

  • Cumulative Returns: In a cumulative fixed deposit scheme, the interest amount is compounded over the term of the deposit and paid at maturity. Longer deposits generally earn higher Fixed Deposit rates.
  • Non-Cumulative Returns: On the other hand, in a non-cumulative scheme, the interest amount is payable on a monthly, quarterly, semi-annual or annual basis.

Until the FD matures, investors receive a fixed interest rate that is higher than a conventional savings account. This sort of deposit, locks up the money of investors for a predetermined amount of time.

Fixed Deposit

The importance of Fixed Deposit

With the passage of time, Fixed Deposits have evolved into an extremely versatile and flexible financial product that offers many benefits. FDs are a good investment option for many reasons. Here are a few:

      1.Promotes Savings:

An investor must hold the investment amount for a fixed period of time when investing in FDs. Consequently, people save money without realizing it because premature withdrawals will result in penalties, thereby encouraging savings.

      2.Guaranteed Returns:

With fixed deposits, an investor can be assured of the return on their investment. Due to the fact that FD returns are pre-determined & equity market fluctuations and other factors make FDs one of the safest investment options. The risk profile of FDs is lower since they are not subject to market fluctuations.

      3.Tax benefits include:

If one invests in a 5-year Tax Saving FD, they will be able to take advantage of the tax benefits under Section 80C. In these products, they can deduct up to INR 1.5 lacs from their investment, making only the interest taxable.

With this investment, premature withdrawals are not allowed except in cases of untimely death.

      4.Flexible Repayment Cycle:

Investors can choose from different tenures ranging from 1-5 years,with various repayment structures to opt from such as monthly, quarterly, half-yearly and yearly repayment of interest rates.
This also provides stability to an investor and if timely re-investments are made, one can increase his CAGR by a huge margin.
The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span.

Liquidation is simple

An FD can be liquidated easily, If the amount needs to be withdrawn before the maturity, there will be a small load fee charged. The liquidation request can be placed both online & Offline.

Loans against FDs
An FD is a reliable financial tool in the event of a financial emergency. These investments are eligible for loans of up to 90-95% of the amount invested.
Through this one can use the same capital received through the loan, and re-invest it to earn in various ways. The interest charged on the loan can be covered with the interest earned on the FD & the remaining small percentage left can be easily paid back with the revenue earned through the Loan amount.

Bajaj Finserv Fixed Deposit

Due to falling repo rates and steps taken by the RBI to inject liquidity into the economy, issuers are lowering their FD interest rates as a result of downward pressure. In addition, market volatility has been high, which is why investors have been seeking investment avenues which offer fixed income instruments. Since the recent announcement to reduce repo rates allows individuals to invest in safe options, they can be assured of a return on their investments.

Investing in Bajaj Finserv Fixed Deposit will provide investors with rich benefits, one of them being custom repayment plans. When the investment environment is stable, one can earn more with high FD interest rates. Through OwnersTown, investors can invest in a Bajaj Finserv online FD from the comfort of their home and enjoy a paperless process.

Investing in FD with OwnersTown

With OwnersTown’s online fixed deposit investment, you can earn more than you would with a bank FD. An affiliation between OwnersTown and Bajaj Finserv has led to the launch of the company’s online fixed deposit product. As a market leader, Bajaj Finserv  Ltd. has a customer base of more than four crore investors, making it the most trusted name in financial investments.

Make your savings work for you by investing in a Fixed Deposit that gives out one of the highest payout in the market.

If you would like more information on the same, please contact marketing@ownerstown.com and start growing now!!