Fixed Deposit retains its image of being “one of the most stable investment tools”, even in 2020. It is definitely a smart way to earn planned and risk-free returns. Let us see why fixed deposits (FD), and more so Company Fixed Deposits or the ones offered by Non Banking Financial Institutions (NBFCs), are gaining significance in 2020.
Attractive interest rates
One of the most common arguments against fixed deposits is that they give low interest. But with changing times and increased competition, fixed deposits are able to offer more to depositors. A comparison between bank and company FD list will show that the latter gives 1% to 2% higher interest rates, which are also immune to market fluctuations and REPO rate cuts. One of India’s leading NBFC fixed deposit product, Bajaj Finance FD, is offering up to 7.85% interest rate currently. You can check the rate you are eligible for with a fixed deposit interest rate calculator.
Systematic Deposit Plan
Introduced by Bajaj Finance, this is the newest variation of FD in the Indian investment market. When you avail this unique scheme, you choose to invest in FD with regular monthly deposits for a stipulated period of time. So basically, this option tackles the issue of putting aside a large chunk of your wealth at one go. You get to reap the benefits of a fixed deposit in a burden-free manner. Choose from minimum 6 and maximum 48 monthly deposits for a period of 12 to 60 months and make a clearer decision with a fixed deposit interest rate calculator.
A range of payout options put the investor in control of his/her FD. There are 2 types of fixed deposits – non-cumulative and cumulative. Non-cumulative FD has 4 payout options – monthly, quarterly, half-yearly and yearly. Cumulative FD gives the whole amount (interest plus principal) only at the time of maturity; but pays a higher interest compared to a non-cumulative FD. Choose your FD depending on your investment goal and make a clearer decision with a fixed deposit interest rate calculator.
Loan against fixed deposit
Your FD can also act as a safety net at the time of an emergency. A loan of up to 75% of the total FD value can be availed by the depositor. So as you do not need to break your FD to arrange money, you also don’t lose out on any interest. A win-win situation!
Low minimum deposit amount
FDs are great also because they are accessible to all income groups. Be it a young office-goer or an industrialist or a retired senior citizen, everyone can start building their wealth with as low as Rs. 25,000.
Ideal for even NRIs
Non-resident Indians can invest in fixed deposits in India with a Non Resident Ordinary (NRO) account. The income they might earn here can be grown with an FD at a rate of up to 7.50% for new customers and 7.75% for senior citizens. Exact returns can be calculated beforehand using a fixed deposit calculator.
An internet search for a company FD list in India will tell you that Bajaj Finance FD is the only Indian NBFC with an international rating of ‘BBB’ by S&P Global. This means that it is a highly safe investment product. With excellent stability ratings from reputed credit rating agencies like CRISIL and ICRA also make it a great investment option. You can open an FD account any time with a simple online process.
As the economy is going through a crisis in 2020, fixed deposits still continue to remain one of the most stable investment options preferred by investors across all categories. While the interest rates over all fixed income investments have been declining in accordance with the repo rate cuts, company FDs still continue to offer high interest rates up to 7.85%.
Apart from high interest rates, Company FDs offer attractive features such as flexible interest payouts, loan against FD, Systematic Deposit Plan, and easy investment terms. Even NRIs can benefit from high-yielding company FDs. Thus, a company FD is a good investment in 2020 for investors across all age groups.