While investments such as fixed deposits enable you to earn high interest by investing a bulk amount in a single go, you might also feel the need for a monthly investment scheme that would help you attain your short-term financial objectives. Also, you would like if that investment option offers flexibility in terms of investment amount and tenor.
If you are thinking that investing in a recurring deposit might help meet all these requirements, we recommend you analyze some other options that might prove to be better in many ways. For instance, Bajaj Finance offers SDP or Systematic Deposit Plan for those investors who are seeking high returns through a monthly deposit scheme. The main benefits of this investment plan are stated below:
Every deposit is an individual FD
Every deposit contributed towards the SDP is an individual fixed deposit that can enlarge your small monthly savings into a huge corpus. This is possible because the minimum deposit amount is just Rs. 5000 which is much smaller than the lump sum amount that you invest in conventional FDs.
The minimum number of deposits you can contribute towards SDP is 6 whereas the maximum number of deposits allowed is 48. You can prefer any number of deposits between these minimum and maximum limits.
Flexible tenor & multiple investment choices
SDP gives you the liberty of picking a tenor as per your investment plan. You can choose a tenor for up to 60 months and you also have the option of investing in the SDP variant that suits your financial goals.
The first variant is called the Single Maturity Scheme with which you can withdraw all your deposits at once. This is possible as the first deposit is locked in for the complete tenor whereas the remaining deposits are adjusted according to the maturity date. This variant is ideal for those who want to convert their small deposits into a huge corpus.
The second variant is called the Monthly Maturity Scheme that lets you lock in all the deposits for an equal tenor. Once you choose a tenor, it is applicable on all the deposits. At the end of the maturity period, you will receive interest along with the deposited amount successively. These interest accrued returns can be clubbed together to form a substantial corpus or you can also reinvest these returns into another SDP account to keep growing your deposits exponentially.
Appealing rate of interest
The deposit date for both these variants can be the 3rd, 7th, or 12th of every month and the interest rate prevailing on the date of deposit will be applicable for every deposit individually. The benefit of investing in SDP as compared to a monthly deposit scheme like RDs is that your deposits grow at a much higher interest rate. The fixed deposit interest rates that apply to Bajaj Finance FD are applicable for SDP as well and you will be able to withdraw much higher returns especially on choosing a longer tenor.
A secure investment avenue
SDP is a secure investment avenue as per leading credit rating institutions like CRISIL and ICRA. Moreover, you also get the option of investing online through the online SDP form. You can calculate the SDP returns by using the SDP calculator that is available on the website of Bajaj Finance. The additional interest rates of 0.25% and 0.10% are given to senior citizens and online depositors respectively.
The option of loan against deposits can be availed when you invest in SDP. Also, you may choose to withdraw some of your deposits early to meet an urgent expense. All these perks and user-friendly investment options make SDP a suitable investment plan for every Indian.