Systematic Deposit Plan is a unique investment option offered in India’s financial market, allowing a customer to make small monthly deposits to build a large corpus. Introduced by reputed financial institution Bajaj Finance, this quick savings tool is the ideal option for individuals who have just started their professional career or have several monetary obligations to fulfil.
Bajaj Finance Systematic Deposit Plan was introduced as a feature of the company’s Fixed Deposit, catering to customers who cannot accumulate a substantial fund to open an FD account. Similarly, this savings plan offers several features and benefits that allow an individual to reap higher returns from their investment.
Why choose a Systematic Deposit Plan?
Systematic Deposit Plan offered by Bajaj Finance comes with the benefits of SIP, without the risk of market-dependent investments. Moreover, this savings tool is one of the most stable options available in Indian financial market; rated stable by ICRA and CRISIL, Bajaj Finance Systematic Deposit Plan ensure guaranteed, high-yield return at the end of investment period.
There are several other reasons why a prospective customer should opt for a Systematic Deposit Plan offered by this particular financial institution.
Take a look –
- High return on investment –
Systematic Deposit Plans accumulate substantially higher returns as Bajaj Finance offers an attractive rate of interest. This quick savings tool categorise each of the deposit as an independent FD, earning interest at the prevailing rate applicable for that day of deposit. This ensures maximum return against a particular deposited amount.
Here is a breakdown of returns earned during different periods of investments and deposits –
|Sum of deposit||Total term of investment||Number of deposits||Interest earned (on each deposit)||Interest received (total amount)||Maturity amount|
Other than that, Bajaj Finance Systematic Deposit Plan also provides an additional rate of interest (over and above the applicable rates) to existing customers and senior citizens –
|Sum of deposit||Total term of investment||Number of deposits||Interest earned (on each deposit)||Interest earned (total amount)||Maturity amount|
Customers can use a systematic deposit calculator before investing to maximise their return from a particular investment term.
- Flexible terms –
Systematic Deposit Plan allows a customer to invest the funds for a flexible tenor. One can choose a period between 12 to 60 months, during which he or she can make 6 to 48 deposits according to their convenience to deposit the necessary amount.
Such flexibility allows an individual to make deposits even after meeting all of their financial obligations. Moreover, Bajaj Finance Systematic Deposit Plan also enables a customer to select the date of deposit according to their convenience. Prospective investors can choose between 3rd, 7th, or 12th of each month as the preferred payment date and make the remaining deposits on that particular day.
Other than the above mentioned terms, a Systematic Deposit Plan offers the provision of a joint account, which can prove beneficial for family members. Joint accounts follow the guidelines applicable on an FD account, making it more straightforward for prospective customers.
- Hassle-free payments –
Customers can deposit as low as Rs.5,000 every month to start their Systematic Deposit Plan. The minimum deposit amount allows individuals to save without worrying about their personal budget. One can also use a systematic deposit calculator to determine the best investment period and monthly deposit sum for maximum return.
Moreover, Systematic Deposit Plan uses National Automated Clearing House, or NACH, facilities to transact the deposit amount every month automatically. It makes the payments hassle-free and quick; an account holder only has to submit their first month’s payment via a payee cheque to authenticate the payment, following which the amount will be automatically transacted on the preferred date of each month.
- Withdrawal facility –
Systematic Deposit Plan allows withdrawal of one or more deposits after only after 3 months of making the payment. It allows an individual to meet any emergency financial requirement, without paying any charge for the withdrawal of funds.
Customers can also opt to avail a loan against their Bajaj Finance Systematic Deposit Plan if they seek financial assistance without liquidating their savings. The invested sum will continue to earn interest, ensuring maximum return after a given tenor.
Bajaj Finance Systematic Deposit Plan is one of the highest-yielding, most flexible investment options available in today’s financial market. Customers can select this option to reap the benefits of high return with zero market risk.
- Ease of depositing
The first payment in a Systematic Deposit Plan shall be made through an account payee cheque. From thereon, the subsequent payments would be automatically debited by the respective financial institution from the depositor’s account. Therefore, individuals do not need to assume the hassle of periodical payment, while at the same time enjoying the conveniences of systemised wealth accumulation.
A depositor would only need to produce a NACH mandate that authenticates the automated payments.
Account holders can also choose to withdraw their accumulated corpus prematurely. Such withdrawals will be subject to Reserve Bank of India (RBI) regulations.
- Simple documentation
To open an FD account through Systematic Deposit Plan, an individual only needs to submit his/her KYC documents alongside cheque for the first payment and a NACH mandate.
- Loan against fixed deposit
As an alternative to premature withdrawal, depositors can opt for a loan against their accumulated corpus to meet any immediate financial obligation. This feature allows individuals to ensure their FD account continues earning interest.
Hence, Systematic Deposit Plan poses as a formidable option for individuals, who want to save well for their future without straining their present financial position. Compared to a systematic investment plan, it guarantees assured returns even during a market crash