While the Indian equity benchmark indices ended on a higher note with 6% gains this week, the stock market trends in the last week have shown high volatility. The coming weeks are also likely to remain increasingly volatile. And in this unpredictable economic climate, it is best to take cues from the past, and invest in fixed-income instruments offering assured returns. Fixed Deposit is one such stable instrument, where you can reap the benefits of guaranteed returns on your deposit.
Read on to know more about benefits of Fixed Deposit investments during these times of uncertainties.
Uncertainty will continue to prevail
The world is witnessing some of the most unprecedented times, and developments in the global and domestic landscapes may contribute to higher volatility in the markets. For long-term investors, choosing to invest quality mid-cap or small-cap stocks can help accrue benefits over time.
However, even these long-term investments are not devoid of risk, which makes it essential to deviate some portion of your savings in a safe instrument like fixed deposit.
On the other hand, for those investing for short-term, markets will remain volatile, and investors must choose fixed-income instruments to grow their savings.
US-China trade tensions have resurfaced
The ripple effects of US-China trade wars were felt last year, which contributed to market volatilities even then. And these trade tensions have now resurfaced, and pose a high threat to the short-term recoveries in the Indian markets.
FD rates in India can fall further
The Reserve Bank of India has announced multiple repo rate cuts in the past few months, to infuse liquidity in the economy. However, excess liquidity adds a downward pressure on fixed deposit rates, which may result in reduction of FD interest rates in India, by several financiers.
Thus, investors may consider investing in prevailing high interest rates, which can help in higher growth of savings. Financiers like Bajaj Finance Fixed Deposit offer one of the highest FD rates of up to 7.85%, so you can grow your savings by more than 40%.
To understand this better, let’s assume you invested Rs. 10,00,000 in a Bajaj Finance FD, for 5 years. See the table below to know the returns for different customer types:
|Customer type||Interest rate||Interest earned*||Total maturity amount*||Growth of savings|
|New Customer||7.60%||Rs. 4,42,319||Rs. 14,42,319||44.2%|
|Existing Customer||7.70%||Rs. 4,49,034||Rs. 14,49,034||44.9%|
|Senior citizen||7.85%||Rs. 4,59,153||Rs. 14,59,153||45.91%|
*The above results have been computed by Bajaj Finance FD interest calculator.
Thus, you can see how your savings can grow by more than 40% by investing in a Bajaj Finance FD, for a tenure of 5 years. With a deposit book of more than Rs. 20,000 crores and 2,35,000 unique customers, this FD has the trust of its investors. It is also rated highest on safety by CRISIL and ICRA, which indicates that your savings are safe in this company FD.
Fixed Deposit can be used as contingency fund
As a fixed-income instrument, FD not only offers guaranteed returns but also enables investors to save for contingencies. In case of emergencies, investors can liquidate their savings (on completion of minimum lock-in period) or also avail a Loan against FD to fund their expenses easily.
With Fixed Deposit proving to be a smarter choice in the current times of economic uncertainties, waste no time in locking in to prevailing high interest rates, offered by Bajaj Finance. Existing Bajaj Finance customers can reap the benefits of a convenient online FD process, which is paperless and helps you invest from the comfort of your homes.
There are also additional facilities for new customers, who can apply online and have their documents collected from their doorstep. Make a smart choice with Bajaj Finance FD and watch your savings grow, easily.