Systematic Deposit Plan (SDP) is a monthly savings tool that can help you grow your savings without any market-related risks. Launched by Bajaj Finance, it is a new concept in the Indian market.
SDP is a new feature of Bajaj Finance FD which gives you the flexibility to invest in FD with a minimal monthly saving. You can start by depositing just Rs. 5000 in your SDP account every month. The deposits can go up to 20 lakhs. The tenor options range from 12 to 60 months and you can make any number of monthly deposits from 6 to 48 as per your savings. Therefore, you do not have to wait to accumulate a large amount to create an FD as SDP plans can be started even with a small monthly saving.
For example, you decide to deposit Rs. 10,000 for ten consecutive months. Now, if you select a tenor of 12 months then your first deposit will mature on the 13th month and the remaining deposits will mature in the subsequent months.
Features of SDP
Interest rate
- Each deposit will be considered as an independent fixed deposit and the interest rate will vary according to the rate that is applicable on that specific day.
- Unlike regular FDs or RDs, the interest rate is not fixed throughout the tenor. As a result, you can gain from the prevailing interest rate for each of your deposit.
Payment method
- The first deposit should be done through account payee cheque of your respective bank account. The remaining deposits will be automatically deducted via a NACH mandate.
- You can choose to deposit on 3rd, 7th or 12th of every month as per your convenience. However, this date will remain fixed for all the remaining deposits.
Auto-renewal
- You can choose to re-deposit the deposits in your SDP account once again but for that, you will have to fill a separate form (for each deposit) as the feature of auto-renewal is not applicable for SDP.
Benefits of SDP
No late payment charges
Late payment charges are not levied in case you miss the stipulated date of deposit on a particular month.
Loan against FD
- You can also avail a loan against any deposit under SDP as per your eligibility.
Safety
- Your deposits are safe with SDP as ICRA and CRISIL have accredited Bajaj Finance FD for its safety and stability. Therefore, you can deposit your savings in a disciplined manner without exposing them to any kind of market risks.
Guaranteed returns
- You are assured of guaranteed returns which can be predicted by using the SDP Calculator.
- You simply have to input the values for the deposit amount, the number of deposits, and tenor. The SDP Calculator will automatically calculate the interest rate, monthly interest earnings, total earned interest, monthly payout and total payout.
- The applicable interest rate on your deposits will increase as you increase the tenor. Also, senior citizens, Bajaj Group Employees, and existing customers will be benefitted with an additional interest rate.
Apart from these benefits, SDP allows you to open a joint deposit account. You can stop depositing in SDP account anytime by cancelling the NACH mandate if you do not want to continue with SDP.
This is the best SDP Plan for individuals who have just started earning as they can deposit smaller amounts in SDP and gradually, they can collect a large corpus by laddering the returns in either FDs or in SDP plan itself.