Business & Finance

SDP: Best Investment Plan for Guaranteed Returns 2021

Systematic Deposit Plan i.e. SDP is a savings tool introduced by Bajaj Finance to help small-time investors and individuals who have started earning recently.

Systematic Deposit Plan, i.e., SDP, is a savings tool introduced by Bajaj Finance to help small-time investors and individuals who have started earning recently. According to this deposit plan, you need to invest a fixed sum every month starting from Rs. 5000. It comes in two forms, viz. Single Maturity Scheme and Monthly Maturity Scheme. The lock-in period of every deposit and the total number of deposits might vary according to your choice of SDP variant and as per your convenience. The key differences between the SDP variants are stated below:

Tenor and Number of deposits – The tenor for the Monthly Maturity Scheme can be up to 60 months, and the number of deposits can range from 6 to 48. 

In the case of the Single Maturity Scheme, only the first deposit is locked in for the complete tenor, whereas the tenors of the remaining deposits are adjusted according to the maturity date. This is because all the deposits mature on the same date if you choose the Single Maturity Scheme. Therefore, the subsequent deposits are locked in for around 1 month less than their preceding deposits. 

Which is the ideal SDP variant?

The Monthly Maturity scheme is ideal for those who want to receive the interest accrued returns every month to manage their extra fund needs. With this variant, you can create a chain of deposits that are locked in for the same tenor. 

You will receive maturity proceeds in successive months upon tenor completion that can be used to take care of your monthly utility bills, grocery bills, and other expenses. 

The Single Maturity Scheme can be used to create a new corpus that can be further invested in a fixed deposit or any other instrument to compound the SDP returns. If you expect to benefit from the returns of an FD through the convenience that an RD provides, then this variant of SDP is ideal for you. 

Therefore, both the SDP variants come with benefits, and the ideal SDP variant depends upon your financial requirements and investment goals. The SDP calculator provided on its portal will let you know the SDP variant that is suitable for you. Some of the key benefits of SDP are given below:

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High-interest rate

The interest rate of SDP depends on the interest rate that prevails on the deposit date. The deposit dates can be the 3rd, 7th, or 12th of each month. The interest rates are comparable to the FD interest rate offered by the Bajaj Finance FD scheme. Therefore, high returns are guaranteed if you invest in this deposit plan. 

Method of Payment

Only the first deposit needs to be made via cheque, and the remaining deposits will be automatically deducted from your bank account via a NACH mandate. 

Stability

SDP variants are as stable as Bajaj Finance FD. This is because it has received high ratings by CRISIL and ICRA when it comes to the safety and stability of the depositor’s money. Therefore, you need not have any reservations in mind when it comes to investing in SDP.

Early withdrawals

Early or premature withdrawals are permitted only if the deposits have completed a lock-in period of 3 months. A nominal penalty might be charged for premature withdrawals. 

Also, a loan against every SDP deposit is available if you want to keep your deposits undisturbed even during a financial emergency. All these features and benefits make it the best monthly saving scheme in 2021. 

Summary 

SDP i.e., Systematic Deposit Plan offered by Bajaj Finance, is one of the best saving schemes as it allows you to start investing with a minimum of Rs. 5000 every month. It provides high returns as its interest rate is comparable with the FD interest rates of the Bajaj Finance FD scheme. It comes in two variants, viz. the Single Maturity Scheme and Monthly Maturity Scheme, both of which have unique investment methods and benefits. The flexible tenor, high stability, convenient withdrawal norms, and other features of SDP variants make them highly recommended investment options in 2021.

gauravkhanna921

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.

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