With the growing knowledge of financial planning, more youngsters are now prioritizing savings to increase their source of income and enhance financial planning. Consequently, savings plans like Systematic Deposit Plans are becoming quite popular among individuals, especially those who have just started working.
Additionally, the plan’s features and benefits, like its attractive SDP interest rate, tends to not only help individuals to make the most of their savings but also to manage their finances better.
Nonetheless, to achieve it, individuals need to learn how to make the most of the benefits that accompany the systematic deposit plan and plan their savings accordingly.
Features of Systematic Deposit Plan
The following highlights the significant features and associated benefits of Systematic Deposit Plan offered by Bajaj Finance and how to take advantage of them –
- Monthly savings plan
This particular feature comes in handy for those individuals who intend to build a robust saving steadily. In this plan, Individuals are allowed to deposit a minimum sum of Rs.5,000 each month. Individuals with a moderate income can make the most of this opportunity and facilitate the process of savings successfully. In turn, it would also help them to inculcate the healthy habit of regular saving.
- Flexible deposit period
Under this FD plan, each monthly deposit comes with a minimum maturity period between 1 year and 5 years. Additionally, Fixed deposit holders are entitled to choose a convenient date to deposit their monthly deposit. Notably, the date chosen would remain constant for the subsequent deposits as well.
To further decide a convenient maturity period against their Systematic Deposit Plan, individuals can use an SDP calculator online and figure the same successfully.
Additionally, it will help them to gain valuable insights about things like prevailing SDP interest rate for different customers and estimated income on their respective deposits.
- Substantial interest rate
This plan offers its account holders a competent rate of interest that facilitates income generation and helps their savings to grow significantly. Since each deposit under this plan is treated as a separate entity, The SDP interest rate for each of them may vary.
Such a difference would occur depending on the interest rate that was prevailing at the time of deposit. Notably, The interest offered to regular, systematic deposit holders is different from what is offered to the senior citizens. Hence, individuals should be careful when it comes to computing the estimated interest in each case.
- Ease to apply and pay for
This plan comes with an easy application process that can be initiated online. It directly makes it a feasible savings avenue for those who do not favor long and cumbersome processes and wish to complete the formalities at the earliest. Likewise, the deposit plan allows individuals to open a joint fixed deposit account. It enables co-account holders to continue the account even when one of them expires.
Similarly, systematic deposit holders have the opportunity to deposit money into their savings plan through the NACH-approved automated payment process. Consequently, the entire process becomes simple and also ensures that individuals do not miss out on any payment.
- Simple documentation process
The said plan of Bajaj Finance comes with a simple documentation process that requires individuals to submit a few basic documents like –
- Latest passport-size photograph.
- Aadhaar card.
- PAN card.
- NACH mandate.
- Account payee cheque.
- Driving license, passport, voter ID or National Rural Employment Guarantee Act authorised job card (any one).
Individuals can take advantage of this minimum requirement and gather the essential documents quickly by figuring out the same in due advance.
- Loan facility
In case of an emergency, individuals can make the most of this Systematic Deposit Plan and meet their financial requirement accordingly. It must be noted that they can avail a loan against each of their plan on meeting the per-decided norms.
Consequently, to avail the required assistance at the right time, individuals must find out about the associated conditions and streamline their loan plea accordingly.
- Premature withdrawal facility
Under the systematic deposit plan, individuals are allowed to withdraw from one or more deposits before its maturity date. However, Such a withdrawal is allowed as per the RBI’s norms and regulations pertaining to premature withdrawal of FD. Notably, The withdrawal process is allowed only on such deposits which have been inactive for more than three months.
- Zero-bounce charge
The systematic deposit plan is quite lenient when it comes to imposing penalties on missed payments. To elaborate, in a situation when individuals have failed to deposit on the scheduled date, they would not have to pay any penalty for it. On the contrary, The financial institution of the deposit account may be required to pay the penalty for disobeying the terms of NACH mandate.
In brief, individuals can make the most of this monthly plan and its competitive SDP interest rate in their favour and save a substantial sum of money with each planned deposit.