A corporate FD is a type of investment that NBFCs (Non-banking Finance Companies) offer. It provides good returns if you invest a fixed sum of money for a fixed tenor. It is much similar to the fixed deposit schemes offered by banks and post office deposit schemes. However, corporate FDs are known for providing a better interest rate, a bunch of innovative user-friendly options, and additional features to their customers. The higher returns provided by them can be used for the higher education of your child, daughter, or son's marriage, a foreign trip, or just to accumulate a sizable corpus for your future.
If you expect high returns from an FD then you should invest in an FD scheme that offers an attractive <a href="https://www.bajajfinserv.in/fixed-deposit-fees-and-interest-rates">FD interest rate 2021</a>. Bajaj Finance FD scheme comes with interest rates of up to 7.25% which is the highest FD rate in the market currently. The following methods will help you to gain better returns on investing in this high-paying FD scheme:
<h2>Select a long tenor</h2>
The highest FD rates are always applicable to the longest tenor and Bajaj Finance FD is not an exception to this. Therefore, if you want to grow your deposits at 7.25% then choose a tenor of 36 months or higher than that.
Remember that with a longer tenor, the number of interest calculation intervals increases and this compounds your returns if you have deposited your savings in a cumulative FD. Therefore, if you opt-out from the periodic interest payouts will provide you high compounded returns over a period.
<h2>Reinvest your returns</h2>
After investing in a cumulative FD of a longer tenor, you can also think of reinvesting your returns upon tenor completion. This will deposit your interests along with principal at maturity and your investment will multiply at a steady rate.
Bajaj Finance also gives you the option of reinvesting your FD returns by default by providing the auto-renewal option in its online FD form.
<h2>Ladder your deposits</h2>
Laddering deposits by creating a chain of deposits of varying tenors is a rather old technique of ensuring enough liquidity points. It also gives you the opportunity of investing your returns at a higher FD rate if the FD rates rise meanwhile.
Bajaj Finance has gone one step ahead for laddering deposits by introducing the multi-deposit facility. This is because you can now invest in more than one FD at once with this facility. You also get the option of choosing the tenor, FD amount, and FD type of your choice. This means that you can ladder your deposits easily and even use them for satisfying your regular fund needs and meeting your long-term goals simultaneously.
The additional FD rate of 0.25% is offered to senior citizens and if you are non-senior then the online investment alternative will help you to grow your deposits by a 0.10% higher FD rate. Moreover, you can now maximize your returns without any worries as the Bajaj Finance FD scheme has been regarded as one of the safest investment avenues by credit rating organizations like CRISIL and ICRA.
A <a href="https://www.bajajfinserv.in/company-fixed-deposits">corporate FD</a> is a fixed deposit scheme that is introduced by a non-banking finance company or institution. It is much like bank FDs but it comes with a higher rate of interest and an array of user-friendly features. For instance, Bajaj Finance offers an interest rate of 7.25% on its FD plans and it even allows you to invest through an online method.
Moreover, the flexible tenor, multi-deposit facility, option of reinvesting FD returns by default, and other features help you to maximize your returns effortlessly. Under this FD scheme, senior citizens get a 0.25% higher FD rate and non-seniors can accelerate their deposits at a 0.10% additional FD rate by choosing the online investment technique.
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