Stocks v/s Fixed Deposit: How to Handle this Market Crash?

Amid the recent economic turmoil, India’s economy has taken a major hit. Within 20 consecutive trading days, SENSEX plummeted by almost 15,000 points or approximately 36% from its previous stand. This has left the share market in a poor overall standing as many investors lost their wealth accumulated over the past 4 to 5 years. 

Situations like these are likely to deter many investors away from equities, as the financial market is likely to take a prolonged time to recover from this sheer drop. In times like this, investing in fixed-income instruments offering assured returns options might prove beneficial instead of opting for market-dependent schemes like SIPs.

How to handle the market crisis?

Amid swinging stock indices, it may be a good idea to invest in the market if you’re looking for long-term gains. With blue-chip stocks at low prices, investors can use this time to invest and look for big gains later. However, this may be a risky investment, as stock prices may take a very long time to recover. 

Thus, you can look to diversify your portfolio with low-risk options that offer stable returns without the risk associated with the money market. During such times, investing in a Fixed Deposit is a great option, as you get the right balance of risk and rewards, making it possible for you to not just protect your savings, but also grow them. 

There are several benefits that Fixed Deposit offers, which makes it one of the best savings option during the current situation. Take a look at some of the advantages of this savings instrument.

1. Assured returns

Bajaj Finance Fixed Deposit has the highest safety ratings of FAAA by CRISIL and MAAA by ICRA, making it one of the safest options for you to grow your wealth. As one of the only NBFCs to have ‘0 unclaimed deposits’, Bajaj Finance FD is known for highest levels of safety, which means your deposit is always safe with this NBFC. 

And why not! After all, it carries the trust of more than 2,50,000 customers contributing towards a deposit book of more than 20,805 crores.  These numbers again, reflect the trust of depositors in this Fixed Deposit. 

2. Attractive rate of interest

Bajaj Finance Fixed Deposit has one of the best FD interest rates, which go up to 7.80% for new customers, up to 7.90% for existing customers and up to 8.05% for senior citizens. 

By investing in this Fixed Deposit for 5 years, you can grow your savings by more than 40%. To understand how, let’s assume you’ve invested Rs. 1 lakh in Bajaj Finance FD for 5 years. The table below shows how different customer segments can grow their savings:

Customer Type	Interest Rate (%)	Interest earned (Rs.)	Maturity amount (Rs.)	Growth of savings (%)
New	7.80	45,577	1,45,577	45.57%
Existing	7.90	46,254	1,46,254	46.25%
Senior citizen	8.05	47,273	1,47,273	47.23%

Thus, you can see how your savings can grow by more than 40% in just 5 years. Thus, locking into these attractive FD interest rates is a smart choice. 

3. Convenience of investing

In the current scenario, Bajaj Finance Fixed Deposit offers you the convenience of investing from the comfort of your home. All you need to do, is to invest through a paperless investment process that helps you to lock into these interest rates before they come down. Visit the Bajaj Finance online FD form and reap the benefit of an online process that enables you to grow your savings easily. 

You can also customise your investment processes, as per your convenience, by choosing tenors as per your convenience. You can also choose to get interest payouts on a periodic basis, and choose the frequency of these, as per your needs. 

Additionally, you can benefit from features like multi-deposit facility, and auto-renewal facility. On renewing your deposits, you can also enjoy the benefit of 0.10% higher interest rates. 

4. Flexible lock-in terms –

Investors can also benefit from the flexible terms offered by financial institutions. For example, one can invest in a Fixed Deposit for a tenor ranging from 12 to 60 months, allowing them to cater to both short and long-term financial goal. Customers can easily find their suitable term using an FD interest rate calculator that helps determine FD maturity amount and fixed deposit return, before you invest. This eliminates the need for any FD Calculation formula as you can easily use the FD rate calculator to plan your investments easily. 

5. Premature withdrawal facility –

In case of an emergency, individuals can opt to withdraw one or more deposits to mitigate their financial requirements. Customers can withdraw any deposit that has completed a minimum lock-in period of 3 months from the date of payment. 

However, for those looking to continue earning interest on their deposits, can choose to avail an easy Loan against Fixed Deposit that helps you fund urgent expenses without losing interest on deposits. 

In today’s volatile market, investing via SIPs does not offer the necessary security or prospective of return. Alternate options like Fixed Deposit offers assured returns, with the flexibility to customise your investment as per your investment goals. 

Thus, regardless of your risk appetite, you can continue to invest in online FD to grow your savings and keep benefiting from assured returns.