Fixed deposits are regarded as one of the most secure forms of financial investments as it provides guaranteed returns. However, select financial institutions in India offer investment schemes with the help of which individuals can avail higher returns over their existing fixed deposit accounts. Among those several investment schemes which can substantially enhance your savings, systematic deposit plans deserve mention.
What do you mean by a systematic deposit plan?
An SDP or systematic deposit plan is a type of a monthly savings scheme that allows applicants to invest a fixed amount in their FDs regularly to generate a corpus over time. Bajaj Finance has incorporated this feature in their fixed deposits to let account holders avail substantial returns on low regular investments. It is highly beneficial for those who do not have lump sum funds available with them to avail the benefits of a FD.
How to apply for a systematic deposit plan?
In order to start an SDP, you should first meet certain eligibility criteria set including –
Account-holders are required to be a citizen of India.
- Initial deposit
Applicants need to make an initial deposit of Rs.25,000.
- Eligible applicants
Companies, Hindu Undivided Family, partnership firms, family trusts, associations, clubs, societies, etc. are also eligible for a systematic deposit plan.
Moreover, these following documents are required to open a fixed deposit account under a systematic deposit plan –
- Passport size photographs.
- PAN card.
- Identification proof such as Aadhaar Card, Passport, etc.
- Address proof such as Voter ID, PAN card, etc.
Features and benefits of an SDP
A Bajaj Finance Systematic Deposit Plan comprises the following features and benefits which an investor needs to be aware of before opting for such a scheme –
- Interest rate
In case of a SDP, the prevailing interest rate set by your financial institution on the date of each monthly deposit is applicable for that certain deposit.
- Minimum deposit
Account-holders can open a Bajaj Finance Systematic Deposit Plan account with a minimum monthly deposit of Rs.5,000.
- Investment tenor
While opening a fixed deposit with SDP, you can opt for an investment tenor ranging from 12 to 60 months. Bajaj Finance also offers account holders to select any of the three days – 3rd, 7th or 12th of each month to make their monthly payments towards the SDP, which will be regarded as the fixed date for all your remaining deposits in your investment tenor.
- Payment method
To make your initial deposit in a Bajaj Finance Systematic Deposit Plan, you are required to make your payment through an account payee cheque. You can choose to deposit manually but it is advised to opt for standard instructions so that you do not miss your monthly payments.
- Pre-mature withdrawal facility
In case of a financial emergency, you can avail the pre-mature withdrawal facility of this investment scheme. However, to withdraw funds, your fixed deposit has to be active for more than 3 months from its date of opening.
So, applicants who are not taking advantage of this investment scheme are losing out by not investing in fixed deposits under an SDP. Moreover, interested candidates can also take the help of an online fixed deposit calculator to estimate their returns on investment on a systematic investment plan.