To accumulate wealth, you must keep on investing it. Even a flourishing business must keep on investing the extra cash they have for future needs. Business expansion is a necessity for growing entities. Businesses need working capital and cash for operational requirements and also require credit or available cash for fixed assets. You might even be looking for acquisitions or mergers in the future that will create value for your business. Ensure you can create a strong capital base with the cash generated. This cash can be invested in various investments to earn interest or returns.
Where should you invest in your business?
You have equity and market-linked investments available in various forms such as mutual funds. However, business rules and prudence does not allow you to use such risky options. Especially if you’re planning your first business cycle, having a safe investment option is worthy. One such safe and high-profit earning investment option is an FD. Fixed Deposit can help maximize the interest income earned and when you are in need in future then investing money in FDs can be very beneficial.
Finding the best FD for your business needs
Bank FDs have been the traditional choice of investors. However, they earn very less interest as they are prone to changes when policy announcements come in place. There are more lucrative FD options available in the form of company FDs like Bajaj Finance Fixed Deposit.
Let us look at various ways in which it Bajaj Finance FDs can help you expand your business.
- High-interest rates– One of the primary reasons for such popularity of Fixed Deposit from Bajaj Finance is its high-interest rates. Being a well-established NBFC, it offers the highest interest rates – one of the best in the industry. You can receive interest rates as high as 8.95% if you are a sole proprietor and a senior citizen.
If you’re a new customer, you get an interest rate of 8.6% whereas the existing customers get an interest rate of 8.75%.
With such high-interest rates, the amount you gain post maturity can be beneficial for your business. Additionally, your principal amount remains there undistorted.
- Flexible tenor and ease of laddering– Unlike many other financial institutions, Bajaj finance FD does not provide you with fixed tenors. You are independent to choose any tenor as well as the amount of money you want to invest. Starting from 12 months and a minimum investment of ₹25,000, you can go high up to 60 months and ₹5 lakhs.
So by planning your business needs and future expenditures, you can invest the right amount of money in FD. For maximum benefit, you must invest for the longest duration, i.e., 60 months. For instance, if you invest ₹5 lakhs for a period of 60 months, you can earn up to ₹2.6 lakhs.
In such case, your principal amount of ₹5 lakhs remains the same and now you have ₹7.6 lakhs. You can use it for your business or keep on investing it for more outcomes.
You can also ladder multiple FDs for constant cash flow to meet ongoing business expenses.
- Loan against FD– One of the best services you can avail from Bajaj Finance FD is the loan against FD facility. If you have an FD with Bajaj Finance, then you become eligible to borrow a loan against your FD without pledging any other collateral. You do not need to go for any other lengthy processes as in the case of personal loan. You can raise a loan up to 75% of the value of the FD and only pay a different interest rate (over and above what you are earning on FD). So, in case of urgency, you can take a loan against FD and resolve your immediate payment needs.
Thus, your business can benefit from smart investment planning in Bajaj Finance FDs. It will help create a base capital for the future and also allow you to keep your idle cash safe. You can invest all those profits you make from a business. You can check your FD maturity amount with online FD calculator to ease your decisions. Managing multiple FD accounts is easy with the online account management tool, Experia- your online fixed deposit account.Follow us
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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.