How You Can Ensure Your Family Gets a Regular Monthly Income

Mr. Sen celebrated his 65th birthday amongst friends, family with great pomp and show. His eldest son Ravi could not join them in person but delivered his wishes via video call. Ravi understands his responsibility and being a banker understands the importance of saving money. Instead of sending tangible gifts for his dearest father, he decides to fixate a regular monthly income for him. How?

Throughout his career, Mr Sen has mastered the art of saving by forgoing present consumption for future consumption. Via multiple FD accounts and recurring deposit accounts, Mr. Sen has managed to gather enough funds for his daughter’s marriage and their education. Post demonetisation, banks and financial institutions have implemented various regulations revolving around investments. Nevertheless, interesting fixed deposit schemes still enable investors to acquire considerable earnings each month. Ravi decides to open a monthly income fixed deposit account for his father as a token of his love and affection.

How can FD accounts promise monthly income?

Unlike standard FD accounts that can only be withdrawn on maturity, monthly income FD accounts transfer investor’s
interests earned directly to his savings account. Usually, banks and other financial institutions allow investors to obtain their interest payments from their FD accounts directly to their savings account. The opportunity cost of earning regular interest payments is a discounted interest rate, and it varies with bank’s FD policies.

But how to obtain maximum monthly interest payments hassle free? Bajaj Finance allows risk-free fixed deposit option because it enables investors to extract maximum profit. Owing to its high ICRA rating, Ravi knows that his father’s hard-earned money is in safe hands. With investment options up to INR 50 lakhs, fixed deposit options made available by Bajaj Finance remains pretty unaffected by market volatility thereby ensuring fixed monthly incomes.

Low stakes, higher returns:

Executives at Bajaj Finserv allow Ravi to calculate an exact figure of monthly returns depending on interest rates offered at the time of depositing. With non-cumulative (See also: Cumulative Fixed deposit schemes by Bajaj Finserv) FD schemes, investors can earn much interest payments. Banks and other financial institutions either offer monthly, bi-annual or quarterly interest earning options.

Through an intensive back-calculation, Ravi realised that the sum of 10 lakh INR he borrowed from his father to buy a car could help him earn a consolidated payment of INR 115,500 (tax deductions above INR 5000 annually). Ravi’s vehicle can surely wait for 18 months during which time Mr. Sen can easily earn INR 9625 monthly.

How did Ravi curate this idea and implemented it?

After thorough research and extensive information gathering on fixed deposits, Ravi realised that it is better to avoid risks for a decent monthly return. After that, he contacts Bajaj Finserv executives who show him their patented FD calculator. Depending on customer type (Senior Citizen in case of Mr Sen) and expected maturity amount, Ravi releases that monthly FD scheme suits him the best. Although interest rates vary according to market fluctuations, Ravi is assured that it would remain constant during the 18 months tenure of FD maturity.
Factors which charmed Ravi:

• Unlike most other fixed deposit schemes, Bajaj Finance already offers higher interest rates on FD with an additional 0.35% for senior citizens. Irrespective of market liquidity and risks, Mr Sen, will still enjoy 7.83% interest rate for non-cumulative FD types.

• Ravi understands the need to extract a chunk of money periodically to suits his own needs. With allowance for a minimum deposit of INR 25,000, Ravi can pay for a half-yearly trip with his family. Based on depositor’s convenience, Bajaj Finserv FD scheme allows monthly, quarterly, bi-annual and annual interest withdrawal. This would save Ravi from breaking his FD in the middle of its tenure and tempt penalties.

• Even after staying 1500 kilometres apart from his family, Ravi can still manage Bajaj Finserv FD accounts for his father through the online customer portal. Plus, Bajaj Finserv takes pride to announce its presence in more than 100 locations all over India.

Happy Ending, guaranteed!

18 months and 2 more months later, Ravi posts photographs from the Covalam beach in Kerala with his entire family. Not to mention, blessings from a proud father and endless joy serving as icing on the cake.