Strategies for maximising your Bajaj Finance fixed deposit returns while minimising risks

Fixed deposits have long been preferred investment avenues in the country. Almost 90% of Indian families consider FDs to be a reliable investment tool. And with good reason, since these are fixed-income instruments where the rate of interest does not depend on ever-changing market movements. The FD rate is locked in from the moment you book an FD up to maturity. Hence you can know the exact amount of earnings at maturity.

Usually, these instruments offer lower returns given the low-risk tendency of such instruments, however, Bajaj Finance, a leading financial institution, offers FDs at attractive interest rates maximising your returns while minimising investment risk.

Here are a few strategies that you can keep in mind to maximise your FD returns while keeping risk at a minimum.

• Keep all eggs in different baskets

Diversification of investments is often an overlooked yet extremely important step. Financial experts suggest keeping all eggs in different baskets as this helps in mitigating risks. Investing in different types of tools based on risk appetite can help in maximising profits when the market is performing well and hedging against losses when the market is bearish. Bajaj Finance FD is the perfect tool for diversifying your investments as you earn generous returns while keeping capital secure.

• Select longer tenures

The interest accrued on your deposit is directly proportional to the tenure chosen. Hence, longer tenures assist in getting higher returns. Bajaj Finance offers flexible tenures between 12 and 60 months. Tenures 36 months and above have considerably higher returns up to 8.60% p.a. This is why choosing a longer tenure can help in maximising returns.

Bajaj Finance also offers a few special tenures that carry higher than usual FD rates. Here is a list of the special tenures with respective rates of returns:

Investor profile	Tenure (months)	Applicable interest rate (% p.a.)
Citizens aged below 60 years	15	7.45
Citizens aged below 60 years	18	7.40
Citizens aged below 60 years	22	7.50
Citizens aged below 60 years	30	7.45
Citizens aged below 60 years	33	7.75
Citizens aged below 60 years	44	8.35
Senior citizens	15	7.70
Senior citizens	18	7.65
Senior citizens	22	7.75
Senior citizens	30	7.70
Senior citizens	33	8.00
Senior citizens	44	8.60

As you can see, choosing these can help in getting a better yield as opposed to similar regular tenures.

• Choose the cumulative FD option

Bajaj Finance offers investors both cumulative and non-cumulative FD options. If you choose cumulative FDs, the interest is compounded annually and reinvested. On the other hand with non-cumulative FDs, the interest is paid out periodically. If liquidity is not a concern and you wish to maximise your returns, then choosing a cumulative FD is a smart option. Thanks to the power of compounding, you can significantly enhance your returns over time.

• Ladder your deposits

Laddering your deposits is a popular investment strategy where instead of putting all funds in one FD you divide your investments across several FDs of different tenures. This provides investors with liquidity as well as gives them the chance to take advantage of potentially higher interest rates, which may be announced in the future. You can easily stagger or ladder your FDs with Bajaj Finance and maximise your returns by using this simple laddering strategy.

These were a few ways of taking advantage of a higher FD rate regime. You can create generous wealth by making sure you choose all those options that lead to higher returns. Apart from this choosing a reliable financier helps in minimising risks. Always opt for FD issuers that have been accredited with good safety ratings.

Bajaj Finance has been bestowed the highest safety ratings of AAA STABLE by ICRA and AAA STABLE by CRISIL, which are the highest in their respective safety domains. This ensures the utmost safety of initial deposit and timely returns. Armed with this information you can now test this strategy to maximise your returns while minimising the associated risks.