Most people are risk-averse investors. They earn a nominal salary per month and have high expenditures. Their monthly savings are, therefore, low. Hence, there is no lump sum amount to invest in an FD. Most people do not want to invest in a recurring deposit either as it cannot tackle interest rate risks. So they wonder, “Where should I invest given the above qualifiers?”
Do you sound like “Most people”, and have the same question on your mind? Then, the one-stop solution for you is the Systematic Deposit Plan (SDP) from Bajaj Finance.
SDP is a new variant of fixed deposits that combines the features of recurring deposits, mutual fund SIP schemes, and regular term deposits.
SDP investments in India are slowly gaining traction. However, currently, there are very few financial institutions that offer the SDP Scheme. One of the leading NBFCs to offer SDP investment in India is Bajaj Finance.
Features of Bajaj Finance SDP
- Types of SDP schemes
Currently, Bajaj Finance offers two variants of SDP. They are as follows:-
a. Monthly maturity scheme: An ideal plan for the small investor, the monthly maturity SDP scheme, allows you to invest nominal amounts each month. You don’t need a lump sum amount to invest, unlike a regular FD.
You can choose any deposit frequency between 6-48. You can choose an investment duration between 12-60 months that will be applicable for all your monthly deposits.
Each deposit will have a different maturity date and interest rate. The interest rate applicable to each deposit will be the prevailing market interest rate on the date of investment. Bajaj Finance allows you to make deposits on 3 days in a month – 3rd, 7th, and 12th.
Thus, this is a great plan to minimize interest rate risks. Moreover, it inculcates financial discipline.
b. Single maturity scheme: The single maturity SDP scheme is ideal for retirement planning. Under this scheme, all your monthly deposits will have the same maturity date. In other words, the investment duration of subsequent deposits goes on decreasing.
The interest rate applicable to each monthly deposit will vary. Under this scheme too, monthly deposits are invested at prevailing market rates on the investment date.
However, deposits under this scheme cannot be auto-renewed. But, it is an excellent plan to build a lump sum retirement corpus.
Depending on your investment style and financial goals, you can select any of these SDP schemes.
- Minimum Deposit Requirements
You just need Rs. 5,000 in your pocket to invest in the Bajaj Finance SDP plans. Bajaj Finance SDP will grow your small investment into a lump sum amount overtime.
- Online Application Process
You can apply for a Bajaj Finance SDP plans online from the comfort of your home. You just need to fill out an online application and upload soft copies of requisite documents. Once your form and documents are duly verified, your SDP plan is opened. Thus, it is an easy, quick, and trouble-free process. Moreover, you will also gain an additional return of 0.1% by investing online, provided you are aged below 60.
If you do not know how to invest your money in an SDP scheme, check the detailed procedure on the Bajaj Finance website.
- SDP calculator
It is quite tough for a layman to manually calculate returns from an SDP investment due to the complexities involved. Bajaj Finance has an inbuilt SDP calculator on its website that instantly computes your ROI. Just plug in some basic details and your returns are displayed even before you undertake the investment.
Apart from the benefits listed above, Bajaj Finance allows premature withdrawals post a minimum lock-in period of 3 months. The Loan Against Deposit facility too is available on SDP schemes. Thus, you must consider investing in the SDP scheme from Bajaj Finance.