It’s pretty evident that any individual would wish to figure out the best course of action that can be taken to maximise their income. This mentality has become all the more prevalent as the financial year draws to a close, with the idea of saving up on tax rising during this particular phase. A combination of both these mentalities has compelled the majority of people to figure out the financial instrument that they can go for.

However, before we can elaborate on the same, there’s a statement we need to clarify – no one makes money by saving. They make money by investing.

Saving a proportion of your funds in avenues like a savings account, Public Provident Fund (PPF), or a recurring deposit might seem like a viable idea – that is, until you realise that the interest rates present in these financial instruments aren’t anything to write home about. The purpose of merely saving up your money is not the only thing we’re touching upon – you also need to find an investment avenue that provides you with substantial returns.

Of course, when one talks about investment, then the concept of mutual funds, a systematic investment plan, or stocks might come to mind. However, since these financial instruments are subject to market risk, there’s a chance that you might not attain the return on investment you were hoping for. This can throw your financial plans in disarray since your expectations from the investment you’ve made might not be met.

We’ve discussed two prevalent problems that you might face while selecting the optimal way to maximise your profits – nailing down an avenue with a high interest rate and getting assured returns on your investment.

The solution to both these problems can be met by investing in a fixed deposit.

By investing a certain amount in a fixed deposit, you will be able to enjoy a higher interest rate as compared to other forms of investment. For example, Bajaj Finance’s fixed deposit scheme provides a lucrative interest rate of 8.75%, which can go as high as 9.10% if you happen to be a senior citizen.

Also, unlike the issue that’s prevalent in financial instruments like mutual funds, a fixed deposit’s interest rate is fixed and not governed by any market fluctuations. The interest rate will be at a fixed level, regardless of how volatile the nature of the market is.

Aside from this, there are other benefits associated with the concept of a fixed deposit as well.

A feasible minimum deposit amount

The idea of investing a lump sum amount at the start of the investment tenure might seem like a hefty task to accomplish, but the fact is that this amount is not as high as you might think it to be. Just look at Bajaj Finance’s fixed deposit scheme – the minimum amount is only Rs. 25000, which means you can choose this investment scheme without having to think twice.

A flexible tenure to suit your needs

Every person – including yourself – has different financial needs. No two people would require a lump sum of money at the same point, which means that people would find it in their best interests to go for an investment scheme that matures when they want it to. With a fixed deposit from institutes like Bajaj Finance, you can choose a tenure that lasts anywhere from 12 to 60 months, allowing you to select exactly when to receive the funds as per your financial requirement.

A fixed deposit scheme is one of the best avenues of investment that you can opt for. A comparative analysis of this financial instrument, along with its benefits, will equip you with the information required to maximise your investment.

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One Comment

  1. G. Sridharan says:

    As I was advised by Bajaj finance I have invested in those funds , but after waiting for 5 years I have not got even my principal amount, leave alone even SB interest, or inflation loss for 5 years. Such a fantastic company this who profits from all gullible investors like me by their useless advises. Please beware of such companies.

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June 2021