Business Wire India
As someone earning a salary, you know the importance of savings. After all, what you do with the portion of your income that you do not spend dictates your propensity to create wealth to meet your goals. Thankfully, today, saving on a monthly basis and growing your wealth is easier, with the introduction of the Bajaj Finance Systematic Deposit Plan. This option helps you navigate conventional problems you may face with savings schemes, namely, rigid lock-in periods and lower interest rates.

In terms of making monthly contributions, Systematic Deposit Plans (SDPs) are akin to Systematic Investment Plans (SIPs), albeit, without the risk factor involved with equities. To know more about how it can help you make monthly savings and augment them, read on.

Make small monthly contributions easily
Bajaj Finance provides both first-jobbers and seasoned professionals an accessible and hassle-free route to making monthly contributions. To begin a Systematic Deposit Plan, all you need to do is set aside a sum of Rs.5,000 or more per month. You then make the first contribution by cheque and automate the rest via a NACH mandate. You can make between 6 and 48 deposits in total. What’s more, no bounce charges are levied by Bajaj Finance in case you miss a monthly contribution, though the bank may, instead of NACH dishonour.

Grow your wealth steadily and safely
At the heart of the Systematic Deposit Plan is the Bajaj Finance Fixed Deposit. Every contribution you make opens a new FD, with the interest rate being what is prevalent on the date of deposit. This FD offers market-leading interest rates and currently, new customers can earn at a rate of up to 8.10% and senior citizens, at a rate of up to 8.35%. What’s great is that you don’t have to compromise on safety to build your savings as this FD carries both ICRA’s MAAA and CRISIL’s FAAA ratings. These are the highest in their respective categories.

Tailor your savings to your goals conveniently
Savings are meant to be available for your goals and while you earn impressive FD interest rates, you can also align your payouts to the targets you have in mind. You can have your monthly contributions mature after a tenor of 12 to 60 months and further, you can plan your finances with greater accuracy by making contributions on either the 3^rd, 7^th, or 12^th of every month.

To understand how the competitive FD interest rates and the flexible tenor provision play out in terms of growing your savings, you can use the SDP calculator. Here is an example.

Customer type: Regular

Monthly savings	Tenor	No. of contributions	Interest rate	Interest on each deposit	Monthly payout
Rs. 5,000	36	24	8.10%	Rs. 1,316	Rs. 6,316
Rs. 10,000	36	24	8.10%	Rs. 2,632	Rs. 12,632

For the above examples, the:

• Total payout amounts to Rs. 1,51,584 and Rs.3,03,168 respectively
• Interest earned amounts to Rs. 31,584 and Rs.63,168 respectively