Know About These 5 Things Before Investing In A Fixed Deposit

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Know About These 5 Things Before Investing In A Fixed Deposit

By depositing your earnings in a fixed deposit, you can build a roadmap that can drive your investment plans steadily. However, to protect your capital from uncertainty and to achieve significant growth for your investments, you need to be careful about a few things. Also, you have to understand a few things such as what is investment, how to earn through fixed income instruments, what is the growth rate, tenor, and interest payout, etc. before investing in a fixed deposit plan. Apart from that, you can gain knowledge about these things before finalizing your decision: 

Credibility of issuer 

Before trusting a bank or finance company with your deposits, ensure that it is a credible name in the market. Also, don’t believe merely by the reputation as a financial institution that you might be going through a crisis and you would want to avoid investing in it during that period. 

You can check the credibility ratings offered by credit rating agencies as they rate an issuer based on numerous factors like stability, history, customer satisfaction, etc. For example, Bajaj Finance FD has FAAA/stable ratings from CRISIL and MAAA/stable ratings from ICRA. These credit ratings are the highest ratings that these agencies offer and reflect that it is completely safe to invest in Bajaj Finance FD. 

Interest Rate 

If you have found some creditworthy banks and NBFCs, your next move should be checking the FD interest rates offered by them. For that, you can utilize the FD calculator that will be present on their websites. With the assistance of an FD calculator, you will be able to judge the exact interest rates that you would get after choosing a specific tenor, amount, and type of FD. 

Since bank FD rates are not high enough to provide swift growth for your capital, you can think of investing in company FDs. Bajaj Finance FD is offering the best FD interest rates in the FD market that can be as high as 6.75%. 

Not only that, you get a 0.10% higher FD interest rate on preferring the method of online investment by using the online FD form that is available on its website. If you are older than 60, you will get a 0.25% higher FD rate than regular investors. 

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Tenor options 

The tenor range that you get with a particular financier should be wide enough to accommodate your financial plans. Bajaj Finance FD not only provides a wide tenor ranging from 12 to 60 months but this tenor range is also flexible. This means that you can pick any number of months or years for locking your deposits as per your comfort and investment strategies. 

Withdrawal terms 

The withdrawal terms offered by a financier should be lenient enough to enable you to liquidate your investments during emergencies. With Bajaj Finance FD, you get to withdraw the deposits prematurely after completion of just 3 months from the deposit date. You may also apply for collateral-free loans against your deposits to take care of your financial requirements without disturbing your investment plans. 

User-friendly features 

Some financiers might come up with a unique feature or facility that might cater to your investment needs and goals efficiently. For example, the multi-deposit feature introduced by Bajaj Finance FD helps you gain more benefits through FDs by investing in more than one fixed deposit plan at a time. The investment tenor, deposit amount, and FD type can be different for each deposit which allows you to ladder your investments smartly so that you can gain higher liquidity opportunities in the future.

By investing in fixed deposits, you can ensure a smooth pathway for meeting your investment goals. However, before investing, you must understand what is investment and ensure whether a few things like tenor, the credibility of the issuer, flexibility in terms of withdrawal and tenor options, etc. are in place or not.

Bajaj Finance FD is not only a safe instrument but it also offers a high-interest rate and a convenient online investment process to its customers. Apart from that, you also get a tenor range that is flexible, a higher rate for senior citizens, and special features like a multi-deposit facility that enables you to ladder your deposits efficiently. 

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