A fixed deposit is one of the most popular savings plans for almost all investors. You will rarely find anyone without a fixed deposit. However, with time many new features have been added to it. These have been done to ease the investment criteria and help people be more regular with a fixed deposit investment and reap its benefits to the maximum.
A Systematic Deposit Plan (SDP) is an innovation in the regular fixed deposits offered by Bajaj Finance. An SDP in India is a new feature to the existing fixed deposit which allows you to deposit a small amount every month at the current prevailing interest rate. The SDP has an inbuilt laddering feature where each deposit matures after being compounded quarterly. You are assured of a smart saving tool by setting the tenor and aligning your short-term and long-term goals.
Looking at overall returns, we suggest you top six reasons why you should start an SDP in India –
- High interest – With the 1-2% higher interest rate than a normal bank FD, you can be assured of lucrative interest rates which you can multiply with increasing the number of deposits.
- In-built laddering – The SDP plan entails the investment of each deposit at the current prevailing interest rate. The compounding takes place quarterly and each deposit keeps getting matured consecutively. Thus, it is an incoming stream of income for the tenor you have chosen. It’s a great plan for constant steady income for new and experienced investors alike.
- Easy deposits – You can start an SDP in India with a minimum amount of Rs. 5,000. This is a decent and easy amount to start with for new jobbers and they also need not worry about depositing each month as there is no penalty for skipping a deposit.
- Flexibility to choose the number of deposits – You can choose the number of deposits anywhere from 6 to 48. The tenor can also be chosen by you ranging from 12 to 60 months. This can be decided as per your short and long term goals.
- Ease of investment – You can start an SDP easily with your KYC documents, NACH mandate and account payee cheque for the first payment. You can also choose the dates for the subsequent deposit from 3rd, 7th or 12th of each month.
- Other benefits – You can take a loan against the SDP for liquidity without affecting the deposit. You can also go for pre-mature if atleast one of the deposits under SDP has completed three months in the plan.
A useful financial planning tool in the form of a Systematic Deposit Calculator is available on Bajaj Finserv website. You can estimate the maturity amounts for each SDP and plan your financial goals accordingly. It’s an easy to use tool where you just need to enter the values for the investment amount, the number of deposits and tenor. The Systematic Deposit Calculator can ease your journey into the SDP.
The SDP in India launched Bajaj Finance comes with high stability ratings from CRISIL and ICRA. This means your investments are guaranteed to fetch high returns.