Which Bajaj Finance Fixed Deposit should you pick to diversify your investment portfolio

Bajaj Finance and most other financiers primarily offer two types of FDs, cumulative and non-cumulative FD. You can select one based on your preferences and goals.

1. Cumulative fixed deposit

A cumulative fixed deposit account is where you get your payout amount all at once until the tenure ends. You get a lump sum at maturity. This type is perfect for those looking to fund long-term goals. Be it buying a car, saving for a home down payment, or funding your child's wedding. This tool is ideal when you need money altogether at once and do not have immediate cash requirements. You can use the online FD calculator to get an idea of how much you can make at maturity.

2. Non-cumulative fixed deposit

This type of FD is perfect for those who require a regular cash flow. Here the interest is paid off periodically, you can choose from monthly, quarterly, half-yearly, or annual payouts. These payouts can be used to pay off EMIs, loan amounts, and credit card bills or even be used as a monthly income source, especially for senior citizens who are retired. You can easily plan your retirement by investing in a non-cumulative FD and use these FD proceedings as a monthly payment as a substitute for your salary. You can use the Bajaj Finance online FD monthly payout calculator to get an estimate of how much you need to invest to get a desired monthly payout.

3. Systematic Deposit Plan (SDP)

In addition to cumulative and non-cumulative FD types, Bajaj Finance also offers an industry-first investment option called the Systematic Deposit Plan (SDP). The SDP is more like a combination of both types of FDs and SIP. This allows you to start your investment journey even if you do not have a large savings corpus in place. Making it perfect for students and early earners. This helps in inculcating a savings habit early in life. You can start with just Rs. 5000. Under the SDP, you have two variants based on payout options, one being the Monthly Maturity Scheme (MMS) where you get monthly payouts much like the non-cumulative option and the Single Maturity Scheme (SMS) where you get a lump sum payout at maturity.

Based on your investment goals, income, and expenses you can evaluate these 3 options and choose the one that suits you best. Apart from choosing an FD option with the highest FD rates choose the right FD type, which is made to achieve your goals. You can use the easily available online FD calculator to evaluate and compare FD options for your investment goals. Each type offers individual advantages to suit your investment objectives. Doing this can help you achieve your investment goals in a hassle-free manner.

About Bajaj Finance Limited

Bajaj Finance Ltd. ('BFL', 'Bajaj Finance', or 'the Company'), a subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 66.05 million customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BB+/Positive and a short-term rating of B by S&P Global ratings.

To know more, visit www.bajajfinserv.in.