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Look beyond tax savings and invest in FD for wealth creation

Updated on: 04 February,2020 02:50 PM IST  |  Mumbai
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Fixed deposits are safe, unlinked to the market, and doesn't require constant monitoring, making it a good ally for the experienced and amateur investor alike

Look beyond tax savings and invest in FD for wealth creation

This picture has been used for representational purposes.

Budget 2020 introduced an optional personal tax regime that offers you the benefit of newer tax slabs, as well as lower tax rates, should you forgo certain deductions and exemptions. Considering how the government has done away with 70 of over 100 tax exemptions, it’s safe to say that your investment approach must alter too.

While earlier you may have felt compelled to invest in certain avenues purely owing to their tax-saving ability, now, you can move away from this mindset, and instead choose avenues based on the value that they add to their portfolio. This gives you an opportunity to pick instruments that truly help create wealth.

In this regard, the humble fixed deposit remains to be one of the best instruments to invest in. It’s safe, unlinked to the market, and doesn’t require constant monitoring, making it a good ally for the experienced and amateur investor alike. Moreover, with Budget 2020 offering an increase in the deposit coverage offered by DIGC, or Deposit Insurance and Credit Guarantee Corporation, from Rs. 1 lakh to Rs.5 lakh, this instrument has become all the more enticing.

Get optimal returns with company FD

While bank deposits benefit from greater coverage via DIGC, it pays to consider company FDs as well, as they offer a better rate of return – an element that’s crucial for wealth creation. For instance, Bajaj Finance Fixed Deposit is one of the best in the country, for it combines high-interest rates with a host of other features that add value to your investment.

Here, you can earn FD interest rates of up to 8.35% if you’re a senior citizen, and up to 8.10% as a new customer, provided you invest for a minimum of 36 months and opt for payouts at maturity only. Both these conditions are easy to meet when you’re investing for wealth creation.

 To understand the returns in-store when you invest in this lucrative offering, consider the table below, where you invest an amount of Rs. 50,00,000 for 5 years. See how interest earned and maturity amount varies for new customers and senior citizens.


Customer type Investment amount Tenor Interest rate Interest earned Maturity amount
New customers Rs.50,00,000 5 years 8.10% Rs.23,80,716 Rs.73,80,716
Senior citizen Rs.50,00,000 5 years 8.35% Rs.24,66,457 Rs.74,66,457

These results are computed using an FD calculator, and you too can use one to tailor your investment to your wealth creation goals.

Apart from competitive FD interest rates, Bajaj Finance also offers you a suite of benefits that make investing here a sound decision. Take a look at what they are.

Flexible investment tenor: While you can choose a tenor of up to 5 years, ideal for wealth creation, you can also opt for a tenor of 12 months or 24 months for goals with a shorter timeline, such as going on an international holiday or buying a motorcycle. The window gives you the flexibility to invest as per your unique goals.

Easy FD renewal: What makes this FD ideal for wealth creation is the Auto-renewal facility. Simply opt in at the time of investing and then reinvest at maturity without any manual intervention. Moreover, you get access to a renewal bonus too, which helps you grow your corpus at a quicker rate. 

High stability and credibility: While DIGC doesn’t insure deposits from NBFCs, Bajaj Finance’s high credibility and stability ratings are sure to put any worries you have to rest. It has the best ratings from both ICRAA and CRISIL, in addition to a BBB rating from S&P Global, making it the only Indian NBFC to be awarded this high honour. 

Minimum deposit amount: Bajaj Finance FD is for investors of all types, and so, the minimum deposit amount is a mere Rs. 25,000. This allows both seasoned investors and beginners to invest right away, without saving beforehand.

Systematic Deposit Plan: For those who wish to strengthen their savings without committing a lump sum amount, Bajaj Finance offers the Systematic Deposit Plan (SDP). This first-of-its kind feature allows for nominal monthly deposits of Rs.5,000 onwards, and you can choose to make anywhere between 6 and 48 deposits. Each contribution forms its own FD and you set a tenor of your choice, from 12­–60 months as per your needs. Although similar to an SIP, an SDP is a superior pick as it doesn’t carry any risk.

In addition to these features, you can also access a Multi-deposit facility that allows you to invest in several FDs via a single cheque, invest in an FD via your debit card at select locations or avail a loan of up to Rs.4 lakh against your FD should you need emergency financing.

Best of all, you can book a Bajaj Finance online FD right away by simply filling a short online form. Now that you don’t have to worry about investing solely for the purpose of tax-saving, you can shift your sights towards investing in avenues that truly serve goals such as wealth creation. 

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