Best SDP Investment Plans in India 2020

Systematic Deposit Plans are quick savings tool, allowing a customer to save a large corpus by making multiple smaller deposits. It is an ideal savings instrument for first-time investors, and individuals who may not have a large corpus to open a fixed deposit account.

Contrary to Systematic Investment Plans (SIPs), Systematic Deposit Plans are not market-dependent, which eliminates the risk involved in investing in the former. The assured high return of the best SDP plans makes it ideal for a diverse customer base looking to increase their corpus through small monthly savings.

How to Select the Best Plans?

Customers can select the best Systematic Deposit Plan according to the features and benefits at offer. This savings tool is offered by companies like Bajaj Finance, and comes with several unique advantages that a customer can benefit from.

Benefits of a Systematic Deposit Plan

The most important benefit of this instrument is the facility of making small, monthly payments to build a large corpus. Customers can save only Rs.5,000 every month in this savings tool to benefit from this policy.

It eliminates the need to deposit a large sum of money as required while opening a fixed deposit. Systematic Deposit Plan administers savings in a disciplined manner, allowing individuals to meet various short-term and long-term financial goals with ease.

Other than that, there are several benefits that the best SDP plans have to offer. Let’s take a look –

• High stability – Systematic Deposit Plans are safe savings schemes, ensuring assured and high returns within a pre-determined tenor. It is a feature of fixed deposits which are considered highly credible.
• Flexible deposit terms – Customers can opt for a deposit period ranging from 12 to 60 months to save with a Systematic Deposit Plan. Depending on one’s financial requirements, they can either opt for a shorter time, as it can help them fulfil immediate financial requirements, or a longer period for substantial wealth accumulation.

Customers can also opt to deposit the funds in any of the 3 available dates, i.e. 3rd, 7th, or 12th of each month. They can select an option according to their preference and carry the rest of the deposit on that particular date.

• Attractive interest rates – The best SDP plans offer an attractive interest rate, as customers enjoy the rates prevailing on a particular date when they make the deposit. Each payment is treated as a separate fixed deposit, which allows accumulating high returns.

Moreover, senior citizens and existing customers can enjoy a higher rate while opting for Systematic Deposit Plan.

Customers can determine the total returns ahead of making a deposit by using an SDP calculator; it allows an individual to find a suitable investment period and deposit amount according to the requirements.

The above-mentioned table offers an insight into the interest earned and total maturity amount from a Systematic Deposit Plan on a regular account.

Senior citizens can earn a higher return thanks to the additional interest rate, which they can determine via an SDP calculator, offered over and above the regular rate of interest.

• Premature withdrawal facility – Customers can withdraw one or more deposit from the Systematic Deposit Plan, once it crosses more than 3 months from the date of its first deposit. Withdrawal will be subjected to the current guidelines and regulations implemented by the Reserve Bank of India.
• Easy payment method – The easy payment method offered by the best SDP plans brings additional convenience to the customers. The monthly deposits can be automatically credited via the NACH facility after a customer registers with the financial institution. They only have to make the first deposit via a payee cheque to open their account.
• Easy application process – The simple application process to start a Systematic Deposit Plan allows customers to save time and effort when availing this savings tool.

Prospective customers of Systematic Deposit Plan offered by Bajaj Finance only have to apply with their KYC details, a payee cheque, and documents required for NACH registration at the time of applying. The process to apply for a joint savings plan is also similar, ensuring minimum hassle for every customer.

One should consider all the above-mentioned factors while selecting the best SDP plans as their savings instrument. It will allow them to reap the maximum return without depositing a lump sum amount, allowing easy investment and assured returns.