Would you rather take Rs 1 Crore rupees at one go or get Rs 1 Lakh a month for the next 8 years? This age-old question is best understood by factoring in that inflation and market conditions would make Rs 1 Crore mean a lot less 8 years later. But, if one were to receive a fixed monthly source of income; that, would solve the problem. Apart from combatting changing circumstances, it allows one to have a consistent, reliant and beneficial financial future.
This is exactly why in the modern sense, managing finances is all about regulating expenditures, saving wisely and investing prudently. This is best achieved by putting your money in a monthly income scheme. The reason being that, for a working individual doing so provides not one but 2 salaries in a way. Not to forget that for businessmen, it means at least 1 regular source of funds coming in.
Monthly Income Schemes range from monthly income mutual fund schemes, fixed deposits, systematic deposit plans etc. Hence, the number one reason you should invest in them is that you’d want the extra interest by making your money, a source of future funds and thereby ensuring stability as well as growth.
They are provided by several institutions and entities in the market. Commercial Banks and Non-Banking Financial Companies (NBFCs) emerge at the top of the list. But with better interest rates, it is NBFCs that steal the show. For example, we could look at Bajaj Finance.
Interest rates make Bajaj Finance your go-to option. The Average FD Rate in India, as of July 2021, is 5.5%. However, Bajaj provides you with FD rates ranging from 5.65-6.75%. While mutual fund monthly income schemes are a great option too, we’d recommend investing in the Bajaj Finance Corporate FD and the Systematic Deposit Plan.
Benefits of Bajaj FD
High Interest Rates: At Bajaj Finance, you receive a very lucrative interest rate of 6.50% which increases to 6.75% if you are a Senior Citizen (60 years of age or more).
Special offers to Senior Citizens: Along with a higher interest rate, senior citizen depositors can also avail periodic pay-outs to fund general expenses that arise at their age.
Benefits to Pravasi Bhartiyas (NRIs): For Non-Residential Indians (NRIs), with an NRO account, a wide range to choose between tenors of 12 and 36 months is available.
High Credibility and Stability: Bajaj Finance has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe.
Flexible Time Frames: By having a wide range of tenors between 12 and 60 months, you can plan your finances and generate higher liquidity according to your requirements.
Smaller Minimum Deposit: With a cap of only Rs 25,000 you can start investing in FDs, at an early stage without being forced to accumulate a larger set of funds.
Digitalized Application Process: At Bajaj, the application prevents you the hassle of page long documents and even longer queues. It allows you to browse the best rates from the safety of your homes while completing the entire process digitally.
Online Loan against FD: Depositors are allowed to take a loan against the FD (post the initial lock-in period of 3 months) when they need to make emergency withdrawals. The only condition is that the loan value cannot exceed 75% of the FD value.
Auto-renewal: Bajaj gives you the option to opt for an auto-renewal to save you the time and effort of manually filling the renewal forms repeatedly. It is completely voluntary and you’re still in control.
Systematic Plan for Depositors
The Systematic Deposit Plans (SDPs) launched by Bajaj allows people to make deposits on regular intervals, keeping in mind the inconsistent availability of funds. In this, the tenor still remains between 12 and 60 months. Depositors have to choose between 6 to 48, for the number of deposits they’d make in a month under their SDPs at Bajaj FD. There are 2 options:
Monthly Maturity Scheme: Under this scheme, depositors can invest in 6 to 48 deposits. They, however, choose one tenor that applies to all deposits but the maturity date differs depending upon when each deposit starts.
Single Maturity Scheme: As the name suggests, under this scheme, you receive maturity proceeds of all your deposits on the same day. The tenor of each deposit after the first one will reduce such that they confine to this condition.
Additionally, you could always use the Bajaj Finance FD Calculator to estimate your returns. Hence, Bajaj Finance is the way to go for Monthly Income Schemes.