Keeping liquid cash in a savings account may help you prepare for urgent needs or financial emergencies. However, when using your savings account as an emergency fund, you could end up stagnating the growth of your funds. But, you can avoid compromising on financial growth, and seek guaranteed returns by choosing the right investment options.

For investors seeking steady growth of their savings, fixed deposit is a preferred investment option. You could consider investing in a Bajaj Finance Fixed Deposit that not only offers guaranteed returns up to 8.95%, but also enables you to take a loan against FD, if the need arises.

Read along to know how this feature makes investing in a fixed deposit a smart decision.

What is Loan against FD?

Understanding your need for liquidity, issuers allow you to pledge your FD as collateral any time you are faced with a cash emergency. Bajaj Finance further offers a quick and direct process, using which you can use your FD as security anytime you want to access your funds before the FD matures.

This stellar feature is helpful as you can meet your needs with the required amount of money basis your FD investment without breaking it. This means that at maturity, you can still access assured returns on your invested sum. As a result, you can build wealth over time while tending to present financial needs easily and conveniently.

What do you earn on maturity?

Apart fromoffering you the flexibility of a loan,opting for a loan against FD also allows your funds to mature via lucrative interest rates. You can secure some of the best FD interest ratesin the market with Bajaj Finance. Senior citizen investorscan earn up to 8.95% interest on investments made for at least 3 yearswith interest payable at maturity. On the other hand, as a regular investor or existing Bajaj Group customer, you can earn 8.60% and 8.85% respectivelyon your FD on the same terms.

To understand how this works, take a look at the tables below illustrating the investment and maturity amount for regular investors, existing customers, and senior citizens.

As a regular investor:

As a senior citizen investor:

As an existing customer:

In case you decide to prematurely break your FDs then you will have to forego your expected maturity proceeds as listed above, pay a premature withdrawal penalty, and even lose out on the FD interest rate offered to you. This is because the FD interest rates for a shorter tenor may be less as compared to a longer tenor.

So, when you use your investment as security for a loan, you allow it to mature at the fixed rate, where it keeps earning its share of interest. This way, year after year, you can reap the growth of your savings while also using the investment to seek liquidity.

What are the other ways you stand to benefit from this FD?

Alongside thisremarkable feature,Fixed Deposits by Bajaj Finance are easy to invest in. The minimum investment amount is just Rs.25,000, so there isn’t any need for you to delay or wait to build a larger corpus. Bajaj Finance Fixed Deposit not only helps you save for retirement, but can also enable your savings to generate monthly income post-retirement.

Moreover, you can invest in several FDs of varying tenorsof your choice using just one cheque via the multi-deposit facility or through the debit card payment facility in select locations. This helps get started with investing without any hassles and meet various life goals easily. Added to this, you can also select the auto-renewal option when investing and allow your investment to grow even after maturity on lucrative interest rates. Bajaj Finance offers you an extra 0.10% as interest when you reinvest.

Apart from thesefeatures, the Bajaj Finance Fixed Deposit also has high credibility ratings by CRISIL and ICRA. These assure you of timely and guaranteed returns on your investment. So, to make the most of these benefits, get started now.Fill an online form and wait for a representative to contact you in order to complete the process of booking an FD.