As we bid farewell to 2023, we welcome a brand new year 2024 with a new set of resolutions and aspirations. One of the most common resolutions is to save more and invest wisely. However, in today’s volatile market, investing in the right option can be quite a daunting task. Fixed Deposits (FD) remain a popular investment option for risk-averse investors, but with the rise of digitalization, many have turned to online FDs, such as Bajaj Finserv’s digital FD. In this article, we will compare Bajaj Finserv’s digital FD with other investment options to help you make an informed decision.
The Benefits of Investing in Fixed Deposit Online
Fixed Deposit remains a popular investment option for people who prefer a guaranteed return on their investments. This is because the interest rate on a fixed deposit is fixed and remains stable throughout the investment period. Bajaj Finserv’s digital FD offers an attractive interest rate of up to 8.85% per annum, making it an attractive investment option for many.
One of the biggest advantages of investing in fixed deposit online is the convenience it offers. With the Bajaj Finserv app, investors can open an FD account in a matter of minutes, without having to visit a bank branch. Additionally, the app offers a range of features such as a fixed deposit calculator, which helps investors calculate the maturity amount and interest rate of their deposits.
Another advantage of digital FDs is that they offer a higher interest rate compared to traditional FDs. This is because digital FDs do not require a physical branch or overhead costs, allowing companies to offer a higher interest rate to investors. Furthermore, digital FDs offer a range of tenures, ranging from 12 months to 5 years, allowing investors to choose a tenure that suits their financial goals.
Comparing Fixed Deposit with Other Investment Options
While fixed deposits offer a range of benefits, they may not be the best investment option for everyone. Here is a comparison of fixed deposits with other investment options.
1. Equity Funds – Equity funds are a popular investment option for investors looking for high returns. Equity funds invest in stocks of various companies, providing investors with the opportunity to earn higher returns than fixed deposits. However, this also means that equity funds come with higher risks. The value of equity funds can fluctuate rapidly, and investors may end up losing money if they do not research the markets and invest wisely.
2. Public Provident Fund (PPF) – PPF is a popular investment option for risk-averse investors, similar to fixed deposits. However, PPF has a longer lock-in period of 15 years, making it a more suitable option for long-term investments. Additionally, PPF offers tax benefits, with investments of up to Rs.1.5 lakh per annum being deductible under Section 80C of the Income Tax Act. However, PPF offers lower returns than digital FDs, with the interest rate set at 7.1% per annum for the January-March 2022 quarter.
3. Gold – Gold remains a popular investment option for many, especially during times of economic uncertainty. Gold prices tend to rise during times of inflation and political turmoil, making it a safe haven for investors. However, investing in gold requires a significant amount of capital and comes with high transaction costs. Additionally, the value of gold may vary with changing market conditions, making it a less stable investment option than fixed deposit online.
Follow the below mentioned steps to book an FD on the Bajaj Finserv App:
1) Download the Bajaj Finserv app from the Play Store/ App store
To open a Bajaj Finance Digital FD, you need to first visit the website or simply download the Bajaj Finserv app. If you’re a new customer, you’ll need to register on the mobile app with your 10 digit mobile number. Once you’ve entered your details, click on “Proceed”. Enter the OTP received on your number and click on proceed. You can set your 4-digit MPin for a seamless log in experience to the app.
2) Select the Digital FD option
Once you’ve logged in on the app, go to the ‘Investment’ section and select the “Digital Fixed Deposit” option. You’ll then be shown the benefits of Digital FD. Click on ‘Open FD’ to enter the amount you wish to invest and the preferred tenure (duration of the investment). Bajaj Finance offers tenor options ranging from 12 months to 60 months. Experience higher interest rates of up to 8.85% p.a. on selection of tenure of 42 months on your chosen amount.
You can also opt for different pay out frequencies (monthly, quarterly, half-yearly, or yearly) depending on your financial needs.
3) KYC (Know Your Customer) process
Once you’ve completed the payment process, you’ll need to complete the KYC process. Enter your personal details, residential details, Occupation details with your Aadhar Card/Pan Card
4) Choose the payment method
After selecting your investment amount and tenor, you’ll be prompted to choose a payment method. Bajaj Finance accepts payments through net banking, debit cards, NEFT, and mobile wallets. Choose the payment method that is most convenient for you and follow the instructions to complete the payment.
You can complete the KYC process online by providing your basic details like name, address, and PAN (Permanent Account Number) and uploading scanned copies of your ID proof and address proof. Once you’ve completed the KYC process, your account will be activated, and you can start investing in the Digital FD.
5) Track your investment
Once you’ve opened a Bajaj Finance Digital FD, you can track your investment through the Bajaj Finance website or app. You can track your investment details like the amount invested, the interest rate, the tenor, and the maturity date. You can also download your account statement and receive email alerts for all transactions related to your FD.
Investing in the right option can be a daunting task, and the right investment option may vary with each individual’s financial goals. While fixed deposits remain a popular investment option for many, digital FDs, such as Bajaj Finserv’s digital FD, offer greater convenience and a higher interest rate than traditional FDs. However, investors must weigh the risks and benefits of each investment option and choose an investment option that suits their financial goals. With the rise of digitalization, it has become easier than ever to invest in the right investment option, so why not start investing with Bajaj Finserv’s fixed deposit app today?