- Assured returns on monthly contributions with Systematic Deposit Plan (SDP)
- Choose to get returns on a monthly basis, or get lumpsum returns
Investing a lumpsum may not always be possible for investors, seeking assured returns on their investments. This is mainly because investment vehicles require a significant upfront payment, so they can get great returns. However, in most average-income households, raising a large corpus for investing at any time, may not be possible.
As most income is received on a monthly basis, wouldn’t it be great if one could save on a monthly basis too? While recurring deposit has usually been a great option for monthly savings, there is always a limitation of access to money, when it’s most needed. In other cases, the returns are very low. So what options do you have if you are looking for a monthly savings scheme that offers attractive interest rates? Systematic Deposit Plan (SDP) is an excellent savings option introduced by Bajaj Finance Limited.
What is Systematic Deposit Plan?
The investment instrument is specifically designed for individuals looking to save monthly. The deposit plan is essentially a Systematic Investment Plan (SIP) but with a twist. Investors can get started with a deposit as low as Rs. 5,000 per month, with the convenience of periodic savings. What sets SDP apart from other instruments is that these are not linked to the market. Hence, you can be assured of fixed returns at the time of maturity.
The investment framework is straightforward. Investors can choose a tenure ranging between 6-48 months and can get started with a minimum investment of Rs. 5,000. Every payment thereafter has to be made on either of the days: 3rd, 7th, or 12th of every month, also called instalments. Once you decide your monthly instalment date, every deposit made thereafter gets whatever interest rate is applicable on the day the deposit. Keep in mind; you get to choose your instalment date only once at the start of the SDP, so choose a day closer to when you receive your salary, keeping a buffer of at least two days.
Should you Invest in an SDP?
If you are looking for a safe way to grow your finances, and are looking for a decent return, then the simple answer is yes.
- Assured Returns
Any investment made with Bajaj Finance Ltd. is a safe option, as the company’s fixed deposit schemes are backed by highest safety ratings of FAAA by CRISIL and MAAA by ICRA. What’s more, over the years, Bajaj Finance Ltd. has managed to maintain zero unclaimed deposits. Currently, the company has over 260,000 happy customers, and with many new online customers enrolling, this number seems to be growing by the day.
- Attractive Interest Rates
From an interest rate perspective, the company is known to offer some of the highest FD interest rates in India. When you consider that banks and NBFCs are cutting interest rates across the board, Bajaj Finance has managed to maintain a decent interest rate offering going into the festive season.
For a better understanding of what you stand to gain in terms of the returns on your monthly deposits, let’s look at the following table.
*ROI may vary up to ± 4 BPS from the rates mentioned in the above table.
For a more in-depth analysis of your specific investment amount, use SDP calculator.
Loan Against SDP
You can also avail the option of availing a loan against your SDP, provided that you’ve completed 3 monthly instalments. If you find yourself in financially difficult times, investing in SDP offers you the added benefit of gaining quick liquidity by taking a loan that can be repaid during the tenure of the SDP. What’s more, you won’t lose any interest accrued on your SDP thus far.
SDP Compared to Other Investment Options
The unique nature of SDPs means that each customer will have their specific benefits from the fixed deposit plan. When compared to other monthly investment schemes, SDPs offer distinct advantages that are designed specifically keeping in mind the needs of the individual.
Whether you are looking for a secure investment vehicle, or primarily expecting a handsome return, SDPs inherently offer more benefits, as compared to PPFs and Recurring Deposits (RDs). In this day and age, these traditional investment vehicles will not be able to offer the same level of safety, flexibility, or rate of interest all at the same time, making SDP an attractive investment option.
Thus, if you are looking to make monthly savings, and want to start now, consider starting with Bajaj Finance online FD, and choose to grow monthly savings with Systematic Deposit Plan. You can also consider investing a lumpsum amount in Bajaj Finance FD, and watch your savings grow, with assured returns.