What is CKYC and why is it important for opening a Fixed Deposit account?

CKYC (Central Know Your Customer) is a registry of KYC documents maintained by the central government. Therefore, if you are availing of a financial service in any bank, NBFC, or other financial institution, you can register your documents in CKYC. After doing that, you won't have to submit a fresh set of essential documents every time you avail of financial service. This applies to investing in fixed deposits as well. 

 

Completing the document verification procedure is compulsory while investing in FDs. Once you register your documents in CKYC, you will get a CKYC number that you can share with the financiers instead of submitting documents. Therefore, it saves considerable time and provides much convenience while depositing in FDs. 

 

NBFCs such as Bajaj Finance have gone a step ahead by providing a complete online investment procedure. Now, you will not only get the benefit of online document verification via CKYC but you can also use the online FD form to initiate the investment process from your home or office. Therefore, the investment process offered by Bajaj Finance FD is modern and convenient for everyone. The other benefits of investing in Bajaj Finance FD are explained below:

 

High-interest rates & Stability 

 

When you invest in a fixed deposit, you expect a better growth rate than savings accounts and RDs. However, the recent decline in the bank FD rates in India has posed a serious question on how profitable FDs are compared to these traditional investment options. 

 

While you earn a higher interest rate of up to 6.75% by investing in Bajaj Finance FD, you also get the stability that you expect from an FD. The higher credit ratings of MAAA/stable and FAAA/stable provided by CRISIL and ICRA underlines the fact that it is one of the most stable investment options in India. 

 

If you invest Rs. 20,00,000 for 5 years in a bank FD, your investments will grow at a rate of 5.25%. The returns offered by bank FDs and Bajaj Finance FD are described below:

 

FD Plan

Deposit Amount

Interest Rate 

Tenor

Interest Gains 

Returns

Growth In Investment

Bank FD

Rs. 20,00,000

5.25%

5 years

Rs. 5,95,916

Rs. 25,95,916

29.79%

Bajaj Finance FD

Rs. 20,00,000

6.75%

5 years

Rs. 7,72,486

Rs. 27,72,486

38.62%

 

You can see a huge difference in the interest gains and growth in the investment rate. However, you can start your investment with only Rs. 25,000 and explore the interest gains for other combinations of tenor and investment amount by visiting the FD calculator page. 

 

Collateral-free loan 

 

Financial emergencies can disrupt your financial strategies and investments. To avoid that, Bajaj Finance FD gives you the alternative of opting for a loan against your deposited amount. The loan can be up to 75% of the deposited amount and you don't have to submit any collateral for obtaining this loan. Bajaj Finance FD also provides easy withdrawal norms to assist you in times of financial or medical emergencies. 

 

Customize your investment 

 

Bajaj Finance FD provides maximum customization options while investing in FDs. While you can choose a tenor between 12 and 60 months according to your financial strategies and requirements, you can also prefer to invest in multiple FDs in one go. 

 

For that, the feature of a multi-deposit facility is offered by this FD scheme. According to it, you can choose to invest in several FDs with separate tenor and deposit amounts. Also, you may invest in either cumulative or non-cumulative or both simultaneously with the help of this feature. This helps you to ladder your fixed deposits smoothly and you may also benefit from extra liquidity and the option of investing at a higher interest rate in the future.



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