The world of investments has been changing rapidly over the last few years, thanks to the rising growth of digital technology. One key trend that has emerged in recent times is the rise of digital fixed deposits, which have revolutionized the way people invest their money in India. These digital fixed deposits have gained immense popularity, particularly among investors who are seeking safe and stable returns with added convenience. In this article, we will explore the rise of digital fixed deposits, how they compare to traditional fixed deposits, and why they are becoming the go-to investment option for many Indians.
What are digital fixed deposits?
Digital fixed deposits are offered by Non-Banking Financial Companies (NBFCs), which are financial institutions that provide financial services like loans, credit facilities, investments, retirement savings, and more to both individuals and organizations. NBFCs offer digital fixed deposits that are similar to the traditional fixed deposits offered by banks, with a few key differences. Traditional fixed deposits require investors to visit a bank and complete the account opening process manually, whereas digital fixed deposits can be opened online, from anywhere, without even visiting a branch physically.
Bajaj Finance, one of the leading financial services companies in India, has been at the forefront of the digital fixed deposit market in the country. The company has launched its digital FD product that offers an attractive interest rate of up to 8.85%* p.a. and gives investors the convenience of investing in FDs from anywhere. Bajaj Finance’s digital FD has been an instant hit among investors and has revolutionized the NBFC fixed deposit market in India.
Advantages of digital fixed deposits over traditional fixed deposits
Digital fixed deposits offer several advantages over traditional fixed deposits. Here are a few of them:
- Convenience: One of the most significant advantages of digital fixed deposits is the convenience they offer. Investors can open and manage their digital fixed deposit accounts from the comfort of their homes, without any need to visit a branch physically. The entire account opening process can be completed online, saving investors time and effort.
- Flexibility: Digital fixed deposits offer greater flexibility in terms of the deposited amount, payout frequency, and payment mode. Investors can choose the tenure of their fixed deposits ranging from 12 months to 60 months, and they can withdraw a portion of their deposited amount during the tenure itself, in case of any emergency funds requirement.
- Safety: Digital fixed deposits also offer a safe and secure investment option, as they are backed by robust encryption technology to secure investor data. Bajaj Finance uses 128-bit SSL encryption technology to protect investor data and has been rated triple-A, assuring investors that their money is safe and secure.
- Higher Interest Rates: Digital fixed deposits also offer higher interest rates than traditional fixed deposits, making them an attractive investment option. Bajaj Finserv Digital FD offers the highest interest rate in the market, with an impressive rate of up to 8.85% p.a., only available for digital fixed deposits.
How do digital fixed deposits work?
Digital fixed deposits work similarly to traditional fixed deposits. Investors need to open their digital fixed deposit accounts online and select the deposit amount, tenure, and payout frequency. Once the account is opened, investors can deposit their money into the account electronically through net banking or other payment modes. The interest is paid on a monthly, quarterly, or half-yearly basis, depending on the investor’s preference. At maturity, the principal and interest amount are paid back to the investor as per their payout option.
Why are digital fixed deposits gaining popularity?
Digital fixed deposits are gaining popularity in India because they offer several advantages over traditional fixed deposits. Firstly, digital fixed deposits can be opened and managed online, making them far more convenient than traditional fixed deposits that require investors to visit a branch. Investors can quickly and easily open an account, and manage their deposits anytime and anywhere through mobile apps or web applications.
Another advantage of digital fixed deposits is flexibility. These products offer more flexibility in deposit amount, the duration of the deposit and payout frequency than traditional fixed deposits. With digital fixed deposits, investors can choose the tenor of their deposit ranging from 12 months to 60 months and even choose the frequency of interest payouts. This makes it easier for investors to manage their finances and make the best use of their investments.
Digital fixed deposits are also out-competing their traditional counterparts in terms of interest rates. Digital fixed deposits offer higher interest rates, making them an attractive investment option for investors looking for safe and stable returns.
The digital platforms of NBFCs offering Fixed Deposits are also highly secure, with robust encryption technology and, in-depth cybersecurity measures. This means that investors can invest in digital fixed deposits without any concern about the safety of their investment.
How do digital fixed deposits compare to traditional fixed deposits?
The primary difference between traditional fixed deposits and digital fixed deposits is the digital aspect. Traditional fixed deposits require the investor to visit a branch, fill out forms, and complete the account opening process manually. In contrast, digital fixed deposits offer complete online fd account opening procedures, making it quick and easy for interested parties to open their account in minutes. With digital fixed deposits, investors can also easily track their deposits and get all the required details through apps or web applications.
Another advantage of digital fixed deposits over traditional fixed deposits is the flexibility of payout options. Investors can opt for payouts at regular intervals depending on their requirements such as on a monthly, quarterly, or half-yearly basis. In the case of traditional fixed deposits, payouts are made only at the end of the tenor.
Potential investors also need to compare fixed deposit rates before committing to any particular bank. Here, digital fixed deposits again emerge as the more attractive option over traditional fixed deposits. Digital fixed deposits offer higher interest rates than traditional fixed deposits, giving investors a chance of higher returns on their investments.
The rise of digital fixed deposits and the Bajaj Finserv App
As mentioned earlier, Bajaj Finance has been at the forefront of digital fixed deposit platforms, and the Bajaj Finserv app is one of the best in the market. The app is user-friendly, and investors can expect to obtain all the required details at a glance, from investment amount and tenure to interest payouts. The app sends regular reminders and notifications to investors, informing them of the maturity date and other key dates, making it easier for them to keep track of their deposits.
The Bajaj Finserv app also offers investors the flexibility of choosing payout options with a few clicks and also offers an auto-renewal option. For investors who have investments in multiple fixed deposits, the app makes it easy for them to manage their investments in one place, thus making them a preferred choice among investors.
The rise of digital fixed deposits is a promising trend that is reshaping the investment landscape in India. Digital fixed deposits are an excellent option for investors looking for a safe and reliable investment instrument with higher returns. Bajaj Finserv app is offering attractive interest rates of up to 8.85%* p.a. on digital fixed deposits, making these investments more popular among Indians.