A recent Salary Trends Survey conducted by Aon projected that around 87 percent of the Indian companies that were surveyed plan to offer salary hikes to their employees in 2021. Another survey reported that at least one in three employees, working in the urban cities in the country are saving anywhere between Rs. 3,000 – Rs. 5,000 on average in a month. This is mainly due to working from home, as the money would have otherwise been spent on commuting, food, and clothing.
The focus has slowly but surely shifted from spending on frivolities, to saving up for the future among the young professionals in the country. Even those who previously thought about retiring soon are pushing back their retirement to save more, amidst falling interest rates and spiking inflation in the country. With the new year upon us, a good time to start your financial analysis of the year passed is now.
You can see what you have done in terms of building your wealth, growing your net worth, and increasing your savings. With the work-from-home model allowing us to store away a couple of thousand rupees every month, it would be wise to put it to good use. It may be daunting for a young earner, or those in the early stages of their professional careers to inculcate financial discipline, such as saving or investing. Since these are crucial to wealth creation, you can choose to grow your corpus through the Systematic Deposit Plan from Bajaj Finance Limited. This feature helps you to enjoy steady growth with fixed deposit, with the ease of investing like those provided by SIPs from mutual funds.
What is Systematic Deposit Plan (SDP)?
Systematic Deposit Plan (SDP) offered by Bajaj Finance Limited is a rapid investment strategy that allows you to make small monthly deposits, with a minimum deposit amount of Rs. 5,000. Each deposit you make counts as a new Bajaj Finance FD, and matures depending on the tenure you choose. Any new deposit shall also be booked at the rate of interest applicable at the date of the deposit.
Under Systematic Deposit Plan, you can choose to save through any of the two variants – Monthly Maturity Scheme or the Single Maturity Scheme. These two schemes are available to accommodate the convenience of various types of investors in the systematic deposit strategy.
- Monthly Maturity Scheme
With the Monthly Maturity Scheme, you can invest in 6 to 48 deposits, and the tenure you choose is applied to all the deposits you make. Furthermore, the date of maturity for each of these deposits is different, as your deposits mature as per the tenure you select.
- Single Maturity Scheme
With the Single Maturity Scheme, you receive maturity proceeds of all your deposits on a single day. Unlike in the Monthly Maturity Scheme, the tenure of each deposit you make after the initial deposit will gradually reduce over time, so that all the deposits mature on a single date, and you get a lump-sum payout.
However, it is also important to note that the deposits made under the Single Maturity Scheme cannot be renewed.
How does a Systematic Deposit Plan work?
SDP allows investors, and particularly young investors, to be prudent, and become financially disciplined. Every year, we make a resolution during the New Year’s Eve to become financially stable or independent, and start saving for the future. Bajaj Finance online FD allow us to be careful with our savings, while SDPs offer us the best of both worlds – flexibility with investment and tenure, and the best interest rates to allow our corpus grow.
Let us consider an example, where you choose the tenure as 36 months, and the number of deposits is chosen to be 6, excluding the first deposit made. Considering you made your first Single Maturity Scheme deposit on the 1st of April 2020, the date of deduction of the amount for the following deposits will be chosen as the 3rd of every month.
Benefits of a Systematic Deposit Plan
- Make small deposits to get guaranteed returns
You can make minimum monthly deposits starting from Rs. 5,000 while opting for the Systematic Deposit Plan. This helps you to conveniently raise your savings in a safe environment, as the Bajaj Finance FD scheme is backed by CRISIL’s FAAA and ICRA’s MAAA safety ratings, and at FD interest rates prevailing on the date of deposit.
- Save according to your convenience
While it is important to make your first payment via a cheque to ensure that your bank account details are recorded, the subsequent ones are automated through a NACH mandate. Additionally, on a set date, either the 3rd, 7th or 12th of each month, you get the option to deposit amounts. This allows you to become more disciplined, while offering greater convenience.
- Get more options for liquidity with a Systematic Deposit Plan
Each payment generates a new deposit with the Systematic Deposit Plan, and then you get maturity proceeds at regular intervals. Additionally, once a deposit is completed 3 months from the date of issue, it can be withdrawn prematurely. Also, to meet monetary needs or at times of liquidity crunches, you can take out a loan against each deposit.
Improving the value of your investments is key to ensuring their sustainability, and Bajaj Finance FD gives you the tools you can employ to do so. However, because of the minimum deposit sum that you are expected to invest up-front, investing a lump-sum amount might not be possible for everyone. To make FD investments more attractive and convenient, Bajaj Finance has launched the Systematic Deposit Plan (SDP) feature to help you enjoy the benefits of an FD, while side-stepping this obstacle. This monthly savings tool offers you the benefits of SIPs, while mitigating their associated risks.
Equipped with this information, take control of your finances, and make a smart investment choice in 2021. To take the SDP route and increase your savings through Bajaj Finance fixed deposit scheme, simply fill out the online application form from the comfort of your home.