A Systematic Deposit Plan (SDP) is a new saving tool launched by Bajaj Finance, one of the leading NBFCs in the country. An SDP is an innovation to allow you to invest easily in the regular fixed deposits offered by Bajaj Finance.
If you are a person who needs to start investing with small amounts – like a first jobber or a housewife or if you want to invest a large chunk of your portfolio in fixed deposits, then SDP is a great tool, to begin with. SDP is a monthly investment plan in an FD wherein you can make small monthly deposits over the tenor of the investment.
Bajaj Finance Systematic Deposit Plan is by far the best SDP to invest in the country due to various reasons. In practice, an SDP payment gets deposited at the currently prevailing interest rate and each monthly deposit works like a new FD. Each of the deposits matures one after the other as their tenor gets over. Thus, each deposit contributes to laddering your investment and you stand to get a steady stream of income.
Let us learn more in detail about the process of investing in an SDP.
Steps to Invest in an SDP
- Choose the investment parameters- Firstly, decide if you are looking for a short-term or long-term investment. A short-term investment can start from 12 months and the maximum can go up to 60 months. This is the tenor. Then look at the amount you can invest every month. The minimum amount is Rs. 5,000 per month. Finally, decide the number of deposits you wish to make. You have the flexibility to make 6 to 48 deposits during the tenor chosen by you.
- Using the SDP calculator – You can utilise the free SDP Calculator available on Bajaj Finserv website to know the exact maturity amount at the end of the tenor. This can help you decide on the deposit amount, tenor and number of investments required to reach a certain financial goal. The SDP calculator will automatically display the interest rate (once you choose your customer category– new, existing or senior citizen). A new customer can avail up to 8.10% for 5 years. As an existing customer, you can avail an additional 0.10%, whereas a senior citizen you can avail an additional 0.25%.
- Documentation – You need to have your KYC documents ready along with the cheque for the payment of the first deposit. You also need to set up a NACH mandate with your bank to allow auto-debits from your account for the rest of the deposits. An SDP account can be easily be opened online with only the KYC documents.
- Payment Dates – You can decide your debits to take place on one of these dates every month -3rd, 7th or 12th. The date once chosen remains fixed.
Investing in an SDP gives you additional benefits such as loan against deposit even when your SDP is in place. You can also go for a pre-mature withdrawal once at least one of the deposits has completed three months. This is the best SDP to invest as you are assured of Bajaj Finance FD’s superior stability and credibility certified by credit rating agencies such as ICRA and CRISIL. To utilise the SDP to its maximum, ensure to make regular investments.