When it comes to financial management, it’s best to deploy your funds in a reliable and rewarding avenue offering assured and fixed returns such as fixed deposits. Bajaj Finance has made it easier to earn rewarding returns without depositing a lump sum amount. You need to make a monthly deposit to earn returns at a fixed rate just like fixed deposits. Let us discuss further better understanding about one of the best investment plans — Systematic Deposit Plan (SDP) and how to leverage its different features.
What is Systematic Deposit Plan?
Bajaj Finance Systematic Deposit Plan is an efficient savings tool with the features of fixed deposit providing higher interest rates without any risky element. You can start an SDP with Rs.5,000 only on a monthly basis. Its fixed rate of returns makes it different from a Systematic Investment Plan (SIP). SIPs are market-linked products and subject to market risk. On the other hand, SDP is free from such risk just like an FD. Even with small investment amount you can look at its growth for significant returns.
The safety aspect makes it one of the best SDP plans, unlike any SIP. You are going to invest your funds in a stable and safe environment. SDP is certified with CRISIL’s FAAA and ICRA’s MAAA ratings. Bajaj Finance has no unclaimed deposits. Bajaj Finance has served 2,50,000+ FD customers with the deposits of Rs.20,000 crores.
How it works
The overall operation of the SDP is fairly straightforward. Monthly deposits of Rs 5,000 or more in the Systematic Deposit Plan works on the following principles.
- Each deposit you make in an SDP creates a new FD.
- Prevailing interest rates on the date of deposit will be applicable on your deposits.
- The flexibility of tenor is offered. Choose from 12 to 60 months.
- The payments are to be made through a NACH mandate through your registered savings account. You can make deposits on the 3rd, 7th or 12th date of every month.
- You can make 6 to 48 deposits with a single maturity date or different maturity dates for a tenor of 12 to 60 months. The tenor will be applicable to all of your other deposits, once decided.
- The deposit will be automated.
- You can withdraw the SDP prematurely if needed after 3 months from the date of SDP issuance.
- If you do not want to withdraw your funds prematurely, you can avail a loan against SDP.
You will have so many features to leverage each of your deposits in the SDP.
Benefits of Systematic Deposit Plan
You are going to receive fixed returns on each of your deposits without any adverse effects of market fluctuations.
2. Flexible Investment Amount
You can start an SDP with Rs.5,000 that can go up to Rs.5 crore. Fixed returns with such flexibility of tenor attract depositors towards SDP.
3. Convenient, automated payments
You just need to submit a cheque for your first deposit in order to register your bank details with Bajaj Finance so that you can make future deposits through NACH mandate.
4. Lucrative interest rates
Bajaj Finance has recently increased its FD rates and offered interest rates up to 7.25%. Senior citizens are the only beneficiaries to get an additional interest rate of 0.25%.
5. Disciplined Savings
You need to make deposits on a monthly basis. It makes you save first and then spend. This habit will result in accumulated wealth that will be helpful to achieve your financial goals.
6. Beneficial for young earners
If you have started to earn just and have limited funds, still you can start investing through SDP. As mentioned, it can be started with Rs.5,000 only.
That’s how an SDP is said to be a lucrative investment plan. You can use the SDP calculator to know your returns on deposits. Just choose the investor’s type, enter investment amount per month, investment tenor and number of deposits you want to make. The online investing process makes it more convenient.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.