Fathers are like the sun in the familial skies, showering children with warmth and love. From ensuring quality education, good health and offering support, fathers go to great lengths to fulfil the needs of their children. These efforts are often backed by sound financial planning, which can help pull the family through financial emergencies and tough times.
With Father’s Day around the corner, you may be feeling grateful about the efforts and sacrifices made by your father. And if you’re looking to express your gratitude towards him, why not go beyond the bells and whistles and gift your father something that helps him secure his future? The ongoing economic uncertainty is a major reason to do so.
If your father is retiring soon, he may need a strong financial investment to strengthen his retirement corpus. And if he has retired, you may help him create a contingency fund to fund urgent requirements.
Choose the right investment as the markets go into a tailspin
In a matter of a few weeks, risky asset classes turned into least preferred investment choices. The volatility index in March quadrupled from the levels seen in January and February. It was the highest level of market volatility record in over five years. Wealth erosion in the last two months has nudged even the best of wealth managers and financial experts to change their strategies.
Last month the Reserve Bank of India said that the Indian economy may witness a contraction. If RBI’s assessment is proved accurate, the Indian economy is set to witness its first contraction in 41 years. In such circumstances, few experts would contradict the choice of a risk-free fixed income investment such as a fixed deposit (FD).
Lock-in to best FD rates amid economic uncertainty
The Reserve Bank of India, owing to the weakness in the economy, has been on a rate-cutting spree which tends to have an adverse impact on the incomes of the senior citizens, who primarily depend on the interest from their deposits.
The economic slowdown also impacted small saving schemes such as the Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizens Savings Scheme (SCSS), and more, as interest rates on these schemes were reduced by 70-140 bps for the first quarter of 2020. Therefore, earnings from the interest on deposits in these schemes have also fallen. Based on further evaluation of the macro-economic situation in the country, the RBI may go for a rate cut in its next bi-monthly policy meet.
Thus, now could be a great time to invest in a fixed deposit for your father, so that further rate cuts in future don’t impact your investment. Amid uncertainties in the financial space, this may be the best time to choose fixed-income options to ensure steady growth of savings, with assurance of guaranteed returns. Amid all fixed income instruments, Fixed Deposit stands out because of the convenience it offers, along with the promise of attractive returns.
Why choose to invest in a Bajaj Finance FD?
When looking at different FD options, it may be disheartening to encounter FD interest rates averaging from 4 to 6%. However, for those looking for higher growth of savings, choosing to invest in a Bajaj Finance Fixed Deposit can be a great option for your father. Thus, this Father’s Day, consider making an investment in Bajaj Finance FD, to get assured returns and the convenience of investing as per his requirements. Let’s look at the benefits of investing in a Bajaj Finance FD for your father.
High return on investment
Bajaj Finance FD offers one of the highest FD interest rates in India, as compared to bank FDs, post-office FD and even most other fixed-income options. Moreover, Bajaj Finance Senior Citizen Fixed Deposit interest rates are 0.25 per cent higher than regular FD rates.
The table below compares the investment growth on Rs. 1 lakh invested for five years in a Bajaj Finance FD vis-a-vis a bank FD.
|Investment Amount||Tenor||Interest Rate||Maturity Amount||Investment Growth|
|Bajaj Finance Senior Citizen Fixed Deposit||Rs. 1,00,000||5 years||7.85%||Rs. 1,45,915||45.91%|
|Bank Senior Citizen FD (Industry Standard)||Rs. 1,00,000||5 years||6.00%||Rs. 1,34,686||34.68%|
Thus, you can see how a difference of a few basis points in the interest rate can end up making a major difference in the returns you can earn, with Bajaj Finance Fixed Deposit. Thus, you can consider investing in your father’s name, to earn higher returns on your deposit.
Periodic income with interest payouts
Senior Citizens can reap the benefits of higher periodic interest payouts offered by Bajaj Finance and spend their golden years without worrying. Thus, you can consider choosing the frequency of interest payouts, opting for monthly, quarterly, half-yearly or annual payouts, as per your father’s needs.
To understand this better, let’s see the payouts that your father can get for different payout frequencies, basis an investment of Rs. 5 lakhs for a tenure of 5 years.
|Payout Frequency||Interest Rate||Interest Payout|
|Half Yearly||7.70%||Rs. 19,250|
If you’re looking to plan the investment amount beforehand, consider using Bajaj Finance FD interest calculator to determine the returns and maturity amount.
Safety of Investment
Bajaj Finance FD is the recipient of the highest ratings in the industry. India’s topmost rating agencies such as ICRA and CRISIL have given stability ratings of MAAA and FAAA to Bajaj Finance FD. These are the highest ratings, given on the basis of the company’s financial performance, past repayment history, and its ability to repay debt and current liabilities. These ratings indicate that you can be assured of guaranteed returns, irrespective of market dynamics.
Additionally, Bajaj Finance has the trust of more than 2,35,000 happy FD customers who have contributed towards a deposit book of more than Rs. 20,000 crores. This reflects the amount of trust people repose on this FD, and hence, you can be sure that the money invested for your father is safe in this deposit.
End-to-end online investment
For those who are looking to avoid paperwork and the need to step out to invest, Bajaj Finance offers the facility of an easy online FD that is an easy, end-to-end paperless process. Thus, you can consider making an investment for your father right from the comfort of your home. All your FD-related communication can be sent to your registered details, and you can also track your investment online using the Experia App.
Even with a small capital amount you can reap all these benefits of Bajaj Finance FD. You can start investing with a sum of Rs 25,000 and choose tenures ranging from 12 to 60 months based on your convenience. In times of financial emergencies, your father can consider withdrawing from his FD prematurely, on completion of minimum lock-in period. Else, he can also choose to avail an easy Loan against FD to fund urgent needs, while also continuing to earn interest on his fixed deposit.
Down the line, this investment could prove to be the most thoughtful present you could give to your dad; relieving him of the worries during turbulent times such as these. This small gesture can make a huge difference, and help support him in times when he needs it the most.