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Why Fixed Deposits Are One of The Best Investment Options for Women

Women have excelled on all fronts, whether home, business or profession. However, whatever their role, they have to grapple with financial insecurities. For example, business women have to face business ups and downs, while a homemaker depends on family members for financial support. Additionally, working women also have to deal with rising expenses and prospects of job loss.

Amidst all these constant changes, an investment option that offers stable and assured returns can provide financial security. Low financial awareness, and cultural bias hold women back from taking greater risks, when it comes to personal finance.

How Is Bajaj Finance Fixed Deposit for Women One of The Best Investment?

Bajaj Finance FDs offer the ideal combination of assured and higher returns among the various savings instruments. Here are 6 reasons why this Fixed Deposit for women is such a great investment choice:

1. Fixed and Assured Returns

Fixed deposits (FDs) are as safe as savings accounts, but they offer higher returns. So why settle for 3.5% or 4% interest rate?

Moreover, even if you are in the higher tax bracket, the post-tax returns are still higher than that of a savings account. The tenor of FDs range from 12 to 60 months, and if you are a senior citizen, you will get higher rates of interest on your FDs.

2. High Stability

The credit rating of Bajaj Finance FD is AAA/Stable by CRISIL, India Ratings, CARE Ratings and ICRA.

3. Minimum Deposit

The minimum deposit for Bajaj Finance FD is Rs. 25,000. The lower minimum threshold will help cover more women across various occupations. Even unemployed women can manage their cash wisely by investing them in FDs.

4. Choice of Payout Intervals

Based on your needs, you can choose between the cumulative and non-cumulative fixed deposit for women.

Women who need periodic payouts for maintenance, can choose the Bajaj Finance non-cumulative fixed deposit scheme. You can then receive money at intervals of your choice, such as every month, quarter or half yearly. Since the interest amount is withdrawn at intervals, they do not provide cumulative effects.

However, if you want to generate long term wealth you can invest in the Bajaj Finance cumulative fixed deposit scheme. Here, the interest is not withdrawn at shorter intervals and get added to the principal, thus, being compounded annually.

The difference between cumulative FD and non-cumulative FD can be understood with an example.

5. Power of Investment

Rather than having the money lying idle, women can grow their money through FDs. For example, Rs. 1 lakh can earn you an interest of Rs. 7600 in 12 months at ROI 7.6%. The same Rs. 1 lakh can earn you Rs. 45,915 in 60 months at ROI 7.85%, with the power of compounding.

Thus, disciplined saving and investment can help women to grow wealth through fixed deposits. The longer the investment, the higher the returns due to the compounding effect.

6. TDS On Fixed Deposits for Women

Fixed deposits have tax deducted at source (TDS). If women submit their PAN number, then 10% TDS is applicable on the interest earned. However, 20% TDS is applicable, if the PAN number is not submitted. Additionally, if the total income is less than Rs. 2.5 lakh (3 lakhs for senior citizens), women can get tax exemptions by submitting form 15G or form 15H at their bank.

What’s more, women can apply, and manage these FDs online. Bajaj Finance has several distribution points, and offers doorstep services as well.

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Written by Aman Khanna

Aman  is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.

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