Savings tools like Systematic Deposit Plans are among the most convenient and flexible options available in the market. The benefits offered to make them easy options even for new learners who have a low-risk appetite. Potential investors can safely invest in these policies to earn high interest in their savings and in turn fulfill their financial goals.
Vitally, anyone considering to invest Rs.10,000 per month in SDP should make sure that their investment generates worthwhile revenue. While Systematic Deposit Plans offer the option to begin investing with as low as Rs.5,000; there is no higher cap on the investment that can be made. Consequently, it is also paramount to ensure that the investment is safe and devoid of market-related risks thus making it a stable and safe option to accumulate savings.
Factors leading to high returns under Systematic Deposit Plans
The Systematic Deposit Plan offers several benefits; some of these directly contribute to ensuring high returns. It is important for individuals to invest Rs.10,000 per month in SDP to understand these benefits in detail.
- High-interest rate: The rate of interest offered on Systematic Deposit Plans begins at 7.6% per annum, ensuring that the total revenue generated is quite high. Importantly, individuals investing in these policies can avail even higher rates of interest depending on their age e.g. if they are senior citizens if they are existing customers of the financial organization, etc.
- Risk-free investment: Systematic Deposit Plans are not subject to market risks like mutual funds and other investment options. For individuals willing to invest Rs.10,000 per month in SDP, this is a vital feature. It ensures that their high investment does not end in any loss.
- Lengthy tenor option: Individuals can opt for Systematic Deposit Plans for a minimum of 12 months. However, this policy also offers a range for the maturity period, which can go up to 60 months. Saving in this plan for a lengthy tenor ensures a higher return on the saving.
- Deposition frequency: Investors also have the option to choose the number of deposition they want to make through their maturity tenor. While investing Rs.10,000 per month can generate quite high revenues, the plan offers the provision to select a minimum of 6 deposits. The maximum number of deposits can go up to 48.
It is advisable for individuals investing in Systematic Deposit Plans to calculate the returns they can expect on their investment using a systematic deposit calculator. While the investment sum is decided at Rs.10,000, investors must also consider the total number of deposits they want to make as well as the maturity tenor they intend to apply for.
Additional benefits offered by Systematic Deposit Plans
Along with the benefits discussed above, the following features ensure an enhanced experience of investment for any individual about to invest 10,000 per month in SDP.
These are explained below in detail –
- Hassle-free deposition: Any individual beginning to save in a Systematic Deposit Plan has to complete their first deposit using an account payee cheque. Once the financial account of this individual is linked with the help of the NACH facility, investors need not worry about their deposits, which are automatically debited on the due date.
- Choice of deposition date: Individuals about to invest 10,000 per month in SDP are also offered the choice of deposition date according to their convenience. Usually, 3 dates are offered to them – 3rd, 7th, and 12th of every month. Once selected, this date cannot be changed before the maturity of this policy.
- Minimal requirements: Any adult Indian citizen can save their earnings in these plans. Furthermore, the documents required to apply for these policies are also minimal –
- KYC documents.
- PAN card of the applicant.
- Recent passport-sized photograph.
- Account payee cheque was drawn from the account to be linked.
- NACH mandate to link the account.
- Easy premature withdrawal: Individuals investing in such plans can also prematurely withdraw their deposits if they have any sudden monetary need. The rest of the deposits will keep generating revenue.
It is advisable to use a systematic deposit calculator under such circumstances to check the interest to be earned.
- Option to avail loan: Investors choosing to save their earnings in Systematic Deposit Plans can also avail of a loan to meet their sudden financial necessities. Using the savings tool as collateral allows individuals to avail of a loan at an attractive rate of interest.
In case of any financial emergency, individuals should compare their loan option to that of premature withdrawal to ensure maximum profit.
Offered by reputed financial institution Bajaj Finance, any individual can start saving in Systematic Deposit Plans to achieve their monetary objectives. From students and newly earning individuals to high-income individuals, anyone can invest in Systematic Deposit Plans to build their future financial assets.