Today, investments form a vital component of any financial strategy as they help your finances grow steadily and battle inflation as well. After saving up an amount of Rs.70 lakh, you may be wondering which investment channel you can turn to for guaranteed monthly income. In such a scenario, a fixed deposit may be your best bet as it offers you liquidity along with investment stability. Here’s how can gain monthly monetary assistance from your FD.
Choose monthly interest payouts
When you invest in an FD, you can either choose to take back the interest accrued along with the principal at maturity or earn frequent interest payouts throughout the tenor. Opting for monthly payouts will give you liquidity every 30 days or so. You can then use this monetary assistance to meet recurring expenses like utility bills, medical expenses, or a child’s tuition fee costs.
When you invest Rs.70 lakh for 2 years with Bajaj Finance, for example, you will enjoy an interest rate of 7.88% as a new customer. Here your total interest gain will be Rs. 11,03,200, which comes to Rs.45,966 per month.
Ladder FDs with terms differing by one month
Another option you have is to split up your investment into smaller amounts and stagger the tenors with terms maturing every month. You could break up the Rs.70 lakh into 10 portions of Rs.6 lakh and 2 portions of Rs.5 lakh. This can then be invested in FDs for 1-year tenors starting at successive months. This ensures that every month you will have Rs.5/6 lakh plus interest to bank on.
Having seen How to get monthly interest from fixed deposit, take a look at the features that make it ideal for your needs.
Flexible investment tenors
Financiers make it very easy for you to align your FD investment to your financial needs by offering flexible tenors. Tenors normally range from a few days to a handful of years. So, if in the future you do not require monthly financial assistance from your FD, lengthen the tenor and save your finances for goals like a down payment for a home or a family wedding.
Generous interest rates
You can earn handsome returns via a fixed deposit by choosing a financier who offers lucrative FD interest rates. Among the top issuers in the country is Bajaj Finance. On a Bajaj Finance Fixed Deposit you get an FD interest rate of up to 9.10% if you are a senior citizen, up to 9.00% if you are an existing customer, and a FD rate of up to 8.75% if you are a regular customer when you invest for at least 36 months with payout at maturity.
Reliable investment stability
A key reason why fixed deposits are a compelling solution is that they are not affected by variations in the market. Additionally, your finances are kept in a stable environment. While banks are known to be safe, you need to verify your financier’s credit ratings if you are investing with a company. For instance, the Bajaj Finance FD carries ICRA’s highest safety rating of MAAA and CRISIL’s highest safety rating of FAAA. These ratings ensure investment security.
Special rates for senior citizens
As a senior citizen, you not only benefit from the security of your finances, but you profit from boosted FD interest rates. To illustrate, Bajaj Finance offers senior citizens a 0.35% Higher Interest Rate on FD than what is offered to regular customers.
Opting for a Bajaj Finance Fixed Deposit also offers you convenient online tools. Compute your returns with ease by using the Bajaj Finance FD calculator. Monthly interest rates are automatically applied as per your profile and tenor, and your interest is generated in an instant. Further, you can monitor your investment on the go online and can get your investment on the road via a simple online application form.