How to Make the Proper Use of SDP Calculator

While there are many investment options which require large capital to generate any significant returns, Systematic Deposit Plans allow individuals to invest a small amount periodically. Intended to help investors build a corpus with easy investments, a Systematic Deposit Plan is a quick savings tool which does not require a lump sum amount to start the investment protocol. It is as simple as an SIP but without the market-linked risks.

While the highest interest rate is offered by the best SDP plan for 5 years, the rate of interest applicable on shorter tenors are also impressive. Beginning at 7.6% interest rate, existing customers, employees, or senior citizens can avail attractive interest rates of up to 7.85%.

The minimum deposit amount for investment in such accounts begins at Rs.5,000. This makes it a convenient investment option for new earners and low-income groups who do not have excessive disposable cash at hand. Especially in the case of new earners, healthy financial habits are generated to help in wealth generation.

Another major advantage of investing in the best SDP plan for 5 years is that investors can avail secured loans against them. Using these accounts as collateral allow applicants to avail lower rates of interest on their loan which in turn can save a substantial in interest repayment if instead they availed a regular unsecured loan. However, it is important that potential investors also check the returns they can expect on their investment sum, using an online calculator.

Things to decide before using SDP calculator

There are quite a few pointers which should be decided before using an SDP calculator. While the calculator can be used to decide on the final amount of investment, it is essential for the investor to decide on a few basic issues.

• The maximum and minimum funds that an individual can invest must be decided beforehand.
• While higher tenor usually offers much better returns, it is important to check how long an investor can practically keep the money invested.
• The number of deposits must also be decided before using the calculator.

How to use SDP calculator?

Using a SDP calculator is quite easy after an individual has decided on the above-mentioned detail. The following steps should be considered while using these online calculators.

1. After accessing an online calculator, potential investors must choose the type of customer they are. This includes options like new customers, existing customers, senior citizens, and employees.
2. Potential investors must mention the funds they want to invest in the Systematic Deposit Plan.
3. The maturity tenor for which an investor wants to invest his/her money must also be updated in the given calculator.
4. Finally, investors must also select the number of deposits they want to opt for in their savings scheme.

Once all the above details are filled in, the calculator displays the total returns along with applicable interests as well as other related details irrespective of whether it is the best SDP plan for 5 years or less. These details are listed below.

• Applicable interest rate.
• Total interest earned.
• The total payout at the time of maturity.
• Monthly pay-out under this scheme.
• Interest earned on every deposit.

Applicants should use the calculator to check the return on different investment sums as well as the number of deposits and maturity tenor. After finalising the numerous details, they can move on with the process of application.

How to apply for SDP?

Before beginning with the application procedure for Systematic Deposit Plans, it is important to note the requirements which must be fulfilled to apply for it. Any Indian citizen can invest in the best SDP plan for 5 years or a shorter tenor, making it a convenient option for investment. The few documents which must be presented while applying for this scheme are mentioned below.

• Government-issued identity proof like Voter ID, Aadhaar card, driving licence, passport etc.
• 2 to 3 recent passport-sized photographs.
• Applicant’s PAN card.
• Financial account details of the applicant.
• Account payee cheque with the first deposit amount.

After arranging all the above documents, investors can complete their application process. It is important they select a date among 5^th, 7^th or 12^th of every month for the day of deposition. Note that this cannot be changed later. The application form can be easily accessed online and it should be filled in carefully. Be it the best SDP plan for 5 years or of a shorter tenor, after submission of the form, a representative from Bajaj Finance will contact the applicant for document collection. Improve your savings without the need to save a lump sum corpus for investment.