When it comes to saving and investment options, there are quite a few avenues one can explore today. In other words, you can decide to park your money in lucrative investment avenues depending on your risk appetite, investment goals and liquidity needs. While investors favouring a high risk-to-return ratio opt for market-linked options like equities and mutual funds, those who are risk-averse find reliable tools like FDs a better fit. You can use the fixed deposit interest calculator to determine the returns you would earn on your investment to make better financial decisions.

 

While fixed deposits offer higher returns than savings accounts, you need to park a lump-sum amount for an extended period to enjoy such returns. This may be difficult for people who have just entered the job market. In such cases, a systematic deposit plan comes in handy.  

What are Systematic Deposit Plans?

Systematic deposit plans help eliminate the one-time investment pressure of FDs by allowing you to pace out your investment over a monthly basis. Thus, with a systematic deposit plan, you can invest small amounts every month to earn high returns and build a corpus over time. Much like an FD, SDPs are safe from market-linked fluctuations and offer guaranteed returns. In a nut-shell, you get to enjoy an investment opportunity that combines the security of an FD with the flexibility of monthly contributions.

How Do Systematic Deposit Plans Work?

In an FD, you make a one-time deposit and this lump-sum continues earning the same interest for the investment tenor. However, Systematic Deposit Plans work a little differently. For starters, every deposit you make via your Systematic Deposit Plan is treated as a new FD. Moreover, the interest accruing on every new deposit is calculated on the prevailing interest rate the day the deposit is made.

 

You can choose an investment tenor ranging from 6-60 months and make regular monthly contributions to grow your wealth and cultivate a healthy savings habit. Thus, a Systematic Deposit Plan works like an RD, where the monthly deposits you make earn interest rates that are comparable with the prevalent FD rates

Features of Systematic Deposit Plan

Low Starting Amount

You don’t need to save up a sizable sum to invest in an FD. Instead, you can start a Bajaj Finance Systematic Deposit Plan with a small sum of just ₹5,000 and a PNB SDP with just ₹100. You can invest tREAD MOREhe amount every month to build a sizable corpus overtime.  READ LESS

Investment Flexibility

Bajaj Finance offers tenors varying from a minimum of 12 months to a maximum of 60 months, while the minimum tenor is fixed at 6 months by PNB. Depending on your investment goals, you can pick a favourREAD MOREable tenor. You can choose a shorter tenor for short-term goals or opt for a long tenor and enjoy the benefits of compounding. Apart from flexibility in terms of the investment tenor, you also get to pick the number of deposits (6-48) you wish to make to the account.  READ LESS

High Returns

A Systematic Deposit Plan allows you to enjoy high returns as each deposit you make grows as per the latest interest rate. Depending on your customer profile, you can avail of interest rates as high asREAD MORE 8.35%. Additionally, you can also avail of higher returns from Bajaj Finance’s special interest rates for special tenors of 15, 18, 22, 30, 33 and 44 months. Moreover, if you qualify for the senior citizen rate, you can enjoy an additional 0.25% on the general interest rate.   READ LESS

Premature Withdrawals

If you’re in need of immediate funds, you can also withdraw from your Systematic Deposit Plan. You can withdraw one or more deposits, but only if the FD has completed three months since its booking datREAD MOREe. Although, there may be penalty charges applicable on such withdrawals.  READ LESS

Payout Options

You can avail of two types of payout options with a Systematic Deposit Plan. The Monthly Deposit Plan allows you to enjoy monthly returns, while the Single Maturity Deposit Plan makes you eligible for READ MOREa one-time payout at maturity.   READ LESS

No Bounce Charges

With a Systematic Deposit Plan from lenders like Bajaj Finance and PNB, you won’t have to pay a bounce charge on a missed monthly payment. This means that you won’t have to shoulder extra expenses at aREAD MORE time when you’re already dealing with a cash crunch.  READ LESS

Loanable Asset

Much like FDs, Systematic Deposits are also loanable assets. In other words, you can leverage the value of your SDP to secure a loan or avail of an overdraft facility. 

Convenient Payments

Thanks to the completely digital application process, starting an SDP is easy and hassle-free. Once you’ve deposited the first instalment via cheque, you can sign a NACH mandate for auto-deductions froREAD MOREm your account on the 3rd, 7th or 12th of every month. READ LESS

Secured Investment

Unlike SIPs that are riddled with market-related risks, a SDP is a plan that comes with guaranteed return benefits. Moreover, if you start your SDP with a reliable lender like Bajaj Finance, you don’t READ MOREhave to worry about the safety of your funds. Bajaj Finance has secured the highest credibility ratings from CRISIL and ICRA, making it a safe choice for your investments. READ LESS

Eligibility Criteria for Systematic Deposit Plan

Booking a Systematic Deposit Plan is pretty simple if you:

  • Are a resident Indian of 18 years or above

  • Can produce copies of your PAN Card 

  • Can produce the requisite KYC documents like Aadhaar Card/passport/voter’s ID, etc.

  • Can produce proof of address like utility bills, municipal tax receipt, etc. 
     

Note: SDP accounts can also be opened on both an individual and joint basis. There are special guidelines for minors opening SDP accounts.   

Systematic Deposit Plan Interest Rate

Before you start saving through a Systematic Deposit Plan, it’s prudent to review the tenor options and applicable interest rates. Here’s the latest rates applicable on a Bajaj Finance Systematic Deposit Plan:

Tenor

Non Senior Citizen*

Senior Citizen

12-14 months

7.40%

7.65%

15-23 months

7.50%

7.75%

24 months

7.55%

7.80%

24-35 months

7.35%

7.60%

36-60 months

8.05%

8.30%

*Disclaimer: Interest rates mentioned in the table correspond to the rates as on 10th May, 2023. The rates are subject to change at the discretion of the lender. 

Special Interest Rate for Systematic Deposit Plan

If you wish to see your money grow at a higher rate of interest, you can opt for any one of the following special tenors and earn cumulative returns.

Tenor

Non-Senior Citizen Interest Rate(Cumulative)*

Senior Citizen Interest Rate(Cumulative)

15 months

7.45%

7.70%

18 months

7.40%

7.65%

22 months

7.50%

7.75%

30 months

7.45%

7.70%

33 months 

7.75%

8.00%

44 months

8.35%

8.60%

*Disclaimer: Interest rates mentioned in the table correspond to the rates as on 10th May, 2023. The rates are subject to change as per the discretion of the lender. 

Systematic Deposit Plan Single Maturity Scheme Calculator

It is important to estimate your returns from SDP before you opt for this saving tool. A Systematic Deposit Plan single maturity scheme calculator helps identify your earning for a given tenor with all your deposits maturing on the same day. You can access a Systematic Deposit Plan calculator online and better plan your financial portfolio. 

 

To use this digital tool, you have to first select the applicable customer type. In other words, you have to choose between senior citizen and non-senior citizen options. You will then have to input your monthly investment amount and pick a desired tenor for your SDP. Lastly, you will have to pick the number of deposits from the drop down menu. Once that’s done, the SDP calculator will automatically display your maturity amount, interest earned and maturity date.

Difference Between Monthly Maturity Scheme and Single Maturity Scheme

  • Monthly Maturity Scheme

Under the Monthly Maturity Scheme, you can pick a tenor ranging from 12-60 months and make your deposits 6 to 48 instalments. However, this selected tenor is applicable to each new deposit. The returns from the deposit is payable when the said deposit matures as per the applied tenor. This type of Systematic Deposit Plan brings you the benefit of assured and steady monthly returns. 

 

Say for instance, you’ve picked a tenor of 2 years and decided to complete your investment in 7 deposits. Then you’re returns will be scheduled as: 

No. of Monthly Maturity Deposits

Tenor*

Deposit Date

Maturity Date

SDP 1

3 years

7.10.2022

7.10.2024

SDP 2

3 years

7.11.2022

7.11.2024

SDP 3

3 years

7.12.2022

7.12.2024

SDP 4

3 years

7.01.2023

7.01.2025

SDP 5

3 years

7.02.2023

7.02.2025

SDP 6

3 years

7.03.2023

7.03.2025

SDP 7

3 years

7.04.2023

7.03.2025

*Standard tenor applicable to all deposits. 

  • Single Maturity Scheme

With a Single Maturity Scheme, the returns from the amount that you invest over time is paid to you once at the time of maturity. In other words, every deposit you make has the same maturity date under this plan. This helps you acquire a large lump-sum corpus at the end of the tenor. The investment tenor for such Systematic Deposit Plans range from 19 to 60 months and the number of deposits you can make varies from 6 to 47. 

 

Say, for instance, you choose to invest in a Single Maturity Systematic Deposit Plan for 2 years in 6 instalment, then, your maturity schedule will look like this: 

No. of Single Maturity Deposits

Tenor*

Deposit Date

Maturity Date 

SDP 1

2 years

7.10.2022

7.10.2024

SDP 2

1 year 10 months 29 days

7.11.2022

7.10.2024

SDP 3

1 year 9 months 29 days

7.12.2022

7.10.2024

SDP 4

1 year 8 months 29 days 

7.01.2023

7.10.2024

SDP 5

1 year 7 months 29 days

7.02.2023

7.10.2024

SDP 6

1 year 6 months 29 days

7.03.2023

7.10.2024

SDP 7

1 year 5 months 29 days

7.04.2023

7.10.2024

*Subsequent deposit tenors reduce with the progression of the plan to ensure all deposits mature on the same day.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs

Is a joint deposit account possible for a Systematic Deposit Plan?

Yes, you can open a joint account under a Systematic Deposit Plan. 

Is the auto-renewal facility available for the Systematic Deposit Plan?

No, auto-renewal facility is not available for a Systematic Deposit Plan.

Can I stop the Systematic Deposit Plan anytime I want?

Yes. You can reverse your e-mandate anytime to stop contributions to your SDP.

Will a change in SDP rates affect my current deposits?

The updated or revised interest rates will only apply for new deposits you make under the plan. Interest on deposits made prior to the rate revision will be calculated on the basis of the rate prevalent on the day the deposit was made.

Can I get monthly interest payouts from my Systematic Deposit Plan?

Non-cumulative or monthly payout option is not available under SDP. In other words, the interest on the sum compounds annually and is paid on a yearly basis. However, if you wish to enjoy monthly payouts, you can opt for the Monthly Maturity SDP scheme. You can pace out your investments such that you have deposits maturing every month.

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