When it comes to investing in India, investors are often puzzled about the best investment options between SDP (Systematic Deposit Plan) and RD (Recurring Deposit). These are popular investment tools for investors in India, and their popularity has been enhanced further by the convenience of using mobile apps like the Bajaj Finserv app. But which of the two is better? In this article, we’ll take a closer look at the differences between SDP and RD and help you decide which investment option to choose.
What is SDP?
Systematic Deposit Plans (SDP) are a relatively new investment option in India. They work similarly to a standard term deposit with a bank but offer the flexibility of making multiple deposits at intervals convenient for the investor. Investors can choose to make deposits at any interval, daily, weekly, or monthly, depending on their preference. With the flexibility of deposit schedules offered by SDPs, investors can efficiently manage their cash flow.
The Systematic Deposit Plan (SDP) offered by Bajaj Finance is an ingenious savings tool that offers substantial benefits to individuals with different financial goals and preferences. This plan offers customers an excellent opportunity to save by making regular monthly deposits, with a minimum amount of Rs. 5,000. These consistent contributions facilitate disciplined savings and instill a savings habit in individuals. Each monthly deposit made by the customer comes with interest, which further encourages savings. Combined with the convenience of making small deposits, this plan makes savings more accessible and attractive.
One of the most appealing aspects of the Bajaj Finance Systematic Deposit Plan is that it allows customers to start saving money with a small sum of just Rs. 5,000. This makes it an ideal option for individuals who are just starting on their saving journey or those who may not have a substantial amount to invest initially. SDP provides an easy way for people to build a savings corpus over a period of time.
The Bajaj Finance Systematic Deposit Plan offers two different payout options. Based on their financial goals and preferences, customers can choose between the Single Maturity Scheme (SMS) or the Monthly Maturity Scheme (MMS). The SMS is suitable for individuals who prefer to receive a lump sum payment of their deposit amount, along with interest, at maturity. This scheme is ideal for people who have a fixed financial goal in mind, such as purchasing a vehicle or a down payment for a property.
On the other hand, individuals seeking to create a steady stream of income can choose the Monthly Maturity Scheme (MMS). This scheme facilitates the disbursement of interest on a monthly basis, while the principal amount remains intact until the end of the deposit period. This option is preferred by individuals who want to generate an additional and regular stream of income from their savings. Bajaj Finance Systematic Deposit Plan is a safe investment option as it is backed by high credit ratings by independent external agencies such as CRISIL and ICRA. These ratings make it clear that this investment is a safe and secure option for individuals who are looking for long-term savings strategies.
In conclusion, the Systematic Deposit Plan offered by Bajaj Finance is an excellent tool that provides customers with an opportunity to start saving from a low amount of just Rs. 5,000, and continually grow their savings corpus over time. With two payout options, the plan caters to diverse customer preferences, making it a comprehensive savings solution. Choosing to invest in the Bajaj Finance SDP ensures a secure investment with guaranteed returns.
Advantages of SDP
- Higher interest rates: SDP’s offer higher interest rates than Recurring Deposits, making them an attractive investment option.
- More flexible: SDPs offer investors flexibility to choose from multiple deposit schedules, making it easier to manage their finances conveniently.
- Higher returns: With the higher interest rates offered by SDPs, investors can earn higher returns on their investment, making these plans more attractive.
What is RD?
Recurring Deposits (RD) is a type of investment option offered by banks and financial institutions that allows individuals to contribute fixed and regular amounts of money at fixed intervals, typically on a monthly basis. RDs are similar to fixed deposits in terms of their interest rate offerings. However, they offer a more flexible approach to investment and savings. RDs are useful for individuals who want to accumulate savings over time or have a specific financial goal to achieve within a defined period. The interest earned on RDs is higher than the savings account interest rate, and the deposits made in RDs are secure and safe, making it a popular choice for risk-averse investors who want to reap benefits from their savings. The investment in RD is hassle-free and offers a consistent way of saving money.
Advantages of RD
- Guaranteed returns: Recurring Deposits offer a fixed interest rate, which is guaranteed over the investment period, making it a safe investment option.
- Easy to open: RDs are easy to open, with very minimal documentation requirements. This convenience makes them more accessible to the average investor.
- Monthly contributions: With Recurring Deposits, investors can make monthly contributions, making it easier to manage their finances.
Why Bajaj Finserv App?
Bajaj Finance SDP (Systematic Deposit Plan) is a versatile investment tool that allows investors to make regular deposits and earn higher interest rates on their investment. It is a new age investment option offered by Bajaj Finserv, providing investors with the flexibility to choose from various deposit schedules and tenures. Bajaj Finserv SDPs offer higher interest rates than regular fixed deposits, making it an attractive investment option for those looking to earn higher returns on their investment.
Additionally, the app provides access to other services such as personal loans, home loans, and fixed deposits. This offers investors a range of investment options from a single platform.
In conclusion, while both SDP and RD are attractive investment options in India, SDPs offer more flexibility and higher returns on investment, making them a better option. The ability to customize deposit schedules and choose longer tenures makes SDPs an attractive investment option over RDs. Additionally, using the Bajaj Finserv app can make the process of opening an SDP fast and less complicated. By taking advantage of the higher interest rates and flexibility offered by SDPs through the Bajaj Finserv app, Investors can achieve their financial goals efficiently.