Man has always been a seeker of excess resources. Over time, these resources have primarily shifted to materialism and more narrowly, money. The idea of maximising the money owned by an individual is common but what is uncommon is the knowledge to achieve this. This is where investments play a key role. 

The common working individual in a country like India, struggles with choosing the right investment option. There are several reasons for this. They primarily include multiple instruments and different companies where one can invest. The instrument will depend on the individual’s goals. Whether, he/she can set aside a huge corpus for longer time periods or can set aside a small portion of their earnings at regular intervals; helps them make this choice.

While the choice of the company depends upon the credibility and benefits offered by it. When instruments are mentioned, people often mention Fixed Deposits (FDs) as an ideal alternative. But, what about people that don’t have such a large amount at once? They need an alternative source. However, in company choices- Bajaj Finance has been quite famous off-late. They are popular for the Bajaj Finance Online FDs but they also have a Systematic Deposit Plan (SDP), for such aforementioned people. 

The SDPs at Bajaj provide you stability and security while allowing you to set up a corpus in a disciplined manner over a period of time. Under this plan, you can choose to save through any 1 of the 2 sub-plans: Monthly maturity scheme and Single maturity scheme. Each scheme caters to different kind of needs and the depositors can make a choice based on their convenience. 

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. 

Following are some features for both SDPs in general: 

• Interest Rates: The interest rate prevailing on the day of each monthly deposit will apply to it individually. The rates will vary depending on the tenor of the deposits. This feature is applicable across both the sub-plans.

• Tenor: Bajaj Finance SDPs have tenor options ranging from 12 months to 60 months. You can even customise the day of the month on which you want to make the deposit- 3rd, 7th or 12th of each month. In case of Monthly maturity scheme, the date once chosen; applies universally to all deposits but for Single maturity, as mentioned earlier it reduces after the 1st one to collectively mature on a single day.

• Minimum Deposit: In SDPs, you can start small with a minimum deposit of just Rs 5000.

• Payment Method: The first payment must be made using an account payee cheque, in order to ensure that your bank gets registered. The subsequent payments for deposits are deducted directly from the depositor’s bank using the NACH mandate, for investments with Bajaj.

• Pre-mature withdrawal: This is permitted for one or more deposit provided the FD has completed more than 3 months from the date of its issuance. In any case, the current RBI guidelines will apply with respect to pre-mature withdrawals.

• Loan against deposit: As under the FDs, Bajaj Finance allows depositors to take a loan against each deposit keeping in mind the applicable norms.

• High Stability and Credibility: Bajaj Finance is a safe option for any investment instruments, irrespective of the risk involved, that you look at. It has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe. 

Now that the details have been mentioned, we would recommend you opt for the monthly maturity scheme with a 2-year SDP. This provides you returns (money) on different dates while allowing you to calculate with a fixed time period of 2 years. 

Therefore, besides being a convenient and good investment option; SDPs are a safe and secure option to park away funds at regular intervals.