When investing your hard-earned savings, you may have doubted the safety of your investment, because of the fear of losing money. While every investor seeks an assurance of high returns with growth-oriented investment options, it is also important to balance out the risk by investing in low-risk investment options.

This Christmas, make a smart investment choice like fixed deposits, which helps you grow your money, while lowering the risk. By investing in Bajaj Finance Fixed Deposits, you can earn up to 8.75% when you invest in a cumulative FD for at least 36 months or up to 9.10% on a 36-month cumulative FD if you are a senior citizen.

Read on to know how fixed deposits bring more to the table than you may have thought, and overcome your fear of losing money.

Earn guaranteed returns

Unlike shares or mutual funds, fixed deposits are not a risky investment avenue as they keep your money safe, far away from market fluctuations. As your interest earnings on fixed deposits do not depend on market conditions, they offer you a fixed return. When choosing an FD pick one with a high rating from a credit rating agency for maximum security.

Build a savings habit

An investment habit will help you build a healthy financial future. This is because if you want to earn a specific amount of interest on your investment, you will have to set aside your savings for a fixed period of time. So, when you channelise your savings into investment options like fixed deposits, you lock your money until maturity without feeling the urge to spend it. This intention will help you earn better returns over time. Moreover, once you taste the fruit of your labour you’ll find it easier to invest continually.

 Earn higher returns

The FD interest rate you earn is higher as compared to what a savings account or recurring deposit has to offer. Thus when you invest in FDs, you tend to multiply your money faster. Some issuers even offer you higher returns when you choose a longer tenor for your FD or when you renew the FD with them. So, if you are looking for an investment option to earn substantial returns, fixed deposits are your best bet. They’re as safe as a savings account and offer better growth for your corpus.

 Cater to emergency needs

When you face an emergency cash crunch you can dip into your FD prematurely to cover your expenses. However, remember that the financial institution will charge a small penalty for premature withdrawals on your fixed deposit. In case you are in urgent need of money, it is better to take a loan against your FD rather than disturbing your investment. This way you can easily access a high amount as the loan is secured. The best part is that while you repay the loan, the FD will continue to earn interest.

 

Invest flexibly

Fixed deposits come with a flexible tenor so you can invest for as long as you wish to, be it a few weeks or a few years. In addition, you have the option to choose between a cumulative and non-cumulative fixed deposit basis your monetary requirements. In case of cumulative FDs you can access the interest earnings on your investment at the end of the tenor, along with the investment amount.

This option is best if you’re looking to build wealth as you can enjoy the benefits of compounding. On the other hand, in case of non-cumulative FDs, you can access interest earnings at regular intervals based on the periodicity you choose. You can opt for monthly, yearly, quarterly, and bi-annual payouts as per your needs.

 These perks prove that investing in a fixed deposit is best for the risk averse and is sure to wipe out any worries that you have. To err on the side of caution, it is best to compare FD interest rates offered by different investment houses and check your maturity amount in advance using the FD calculator. This will give you a clear picture of what you can expect. Once you get the hang of it, you can ladder your FDs based on your goals to ensure a balance between liquidity and long-term wealth.