How to Save For Your Vacations?



A research analyst by profession, Mr. Ashok Mitra has been a cyclist, adventurist, and an avid traveler. In less than 5 years of employment, he has toured more than 40 locations all over India – Delhi, Bengaluru, Visakhapatnam, Hyderabad, Varanasi, Jaipur, Mumbai, Sikkim; you name it! Interestingly, Mr. Mitra has realized his love for trekking during his second trip to the Shivaliks. Thanks to his easy-going attitude and the determination to make an impact everywhere he sets his foot on, Mr. Mitra knows exactly how to minimize his costs. Being a risk-averse individual, Ashok has multiple FD accounts in different banks.

Since time immemorial, he has always dreamt of traveling to Africa. He takes pride in flaunting different sorts of souvenirs he has been receiving from his uncle in Mozambique. But now his excitement can only be satiated through a tour of the African rainforest; something that he has only dreamt of, to date!

Not that he had not tried saving, but he failed. Even after compensating for avoidable luxuries, the trip will still cost around INR 1.5 lakhs, many times higher than what he paid for a packaged tour to Himachal last year.

Pre-condition to take off:

In strictly technical terms, Ashok finds it challenging to balance liquidity with savings. He has heard about fixed deposits, but the returns are not substantial. This implies that Ashok will need to keep depositing for more months before he can enjoy the African safari. Although bank FD interest rates are lower, they are more secure.

Should Ashok forgo security for his hard-earned money for higher FD interest rates? He knows that fixed deposit accounts provided by standalone companies sometimes turn out to be fraudulent. Should he turn to lower returns and make his performances more secure?

What can Ashok do to realize his African trip daydream?

Saving money is perhaps the most secure and slowest form of obtaining a decent return. Since demonetization has set in, equity and mutual funds’ performance have deteriorated. Plus, Ashok is an optimist and is risk averse. Investing in debts or gold might bear fruit, but his occupation is already tremendously hectic. How to obtain peace of mind and maximum returns securely in a smaller time span?

  • Ashok might consider investing in small capital funds. Statistics reveal that investors get an excellent opportunity to accumulate stocks at a lower cost. However massive bank debts in mid-2018 might mean lower capital returns.
  • Investing in public provident funds is reliable and provides decent returns for a maximum investment of INR 1.5 lakhs. But if Ashok needs to tour Africa next year at the earliest, he might choose fixed deposit accounts because returns from PPF are a long-term affair.
  • Bonds, post office account schemes, and public offerings are a slower mechanism to save money for a vacation. There are investment ceilings and term floorings which Ashok can’t manage to abide by.
  • The company fixed deposits offered by Bajaj Finserv will allow Ashok to book his Fixed Deposit account online. Plus it would provide him higher (than banks) FD interest rates, hence higher returns.

Soon you will find out how Ashok’s trip can easily be sponsored from the returns obtained from opening an FD account in Bajaj Finance. This is how:

  • Liquidity: Institutionally, fixed deposit accounts are far less liquid than savings or current accounts. Banks and other financial institutions often charge hefty fines in case of premature withdrawals. Bajaj Finserv understands your problem, and with a meager deduction rate, users can withdraw their FD deposits in times of emergency. Calculate net returns on maturity using FD calculators online.
  • Higher credit Rating: Ashok’s friends have warned him of deceitful financial institutions which promise incredibly high returns. Losing his deposits to counterfeit financial institutions, unauthorized lenders and Ponzi Schemes is something which he cannot afford to.

Bajaj Finserv offers 100% security. With a considerably high credit rating from ICRA and CRISIL, investing in Bajaj Finance fixed deposit accounts is a piece of cake.

  • Lower stakes, higher returns: In contrast to FD interest rates provided by nationalized banks, Bajaj Finance offers 8.1 % – 8.6 % irrespective of age, monthly income and other parameters.

12 months and 16 days later…

Ashok posts an entire album of photographs from the Nile. Ashok thanks his Bajaj Finance executives for helping him choose 12 month FD scheme that sponsored his dream. Bajaj Finance group greets him back with a warm welcome.