Fixed deposits in India have been in demand over generations, courtesy of the secured returns and high-interest earnings they provide on your investment. The RBI brought in revisions for the repo rates, sometime back, in August. This was a welcome change, due to which most issuers are now offering better FD interest rates. As a senior citizen, especially, you should definitely consider fixed deposit investments to enjoy guaranteed returns and safety.
Along with the present FD interest rates, there are a number of factors that make this instrument popular among investors. Read on to know how the increased interest rate clubbed with the multitude of FD features work in your favor as a senior citizen.
As a senior citizen, you are bound to have a low-risk appetite. This is because if you are nearing retirement or are already retired then your savings and investments become your only source of income. At this juncture of your life, it is imperative to invest in instruments that provide an assured return.
Choosing market-linked investments, in the absence of an active source of income, exposes you to risk, which you may not be able to bear. In this scenario, FDs can be your go-to option as they safeguard your money and offer fixed returns irrespective of market conditions. Moreover, choosing a trusted issuer like Bajaj Finance for your Fixed Deposit investment will offer increased safety for your money with the highest ratings from agencies like ICRA and CRISIL.
Higher interest gains
To gain from higher FD interest rates, look for reputable company FDs. This is because the interest rate on offer for company FDs is higher than bank FDs. As a senior citizen, you can enjoy an FD interest rate of up to 9.10% for a cumulative Bajaj Finance FD for a minimum maturity tenor of 36 months. Assured with such high interest, you can utilize your maturity sum comfortably to fund an array of expenses related to your retired life without dipping into your savings.
Low deposit amount
No matter what your savings are, you can store away some cash for everyday expenses and unforeseen emergencies, and start a Senior Citizen FD with as low as Rs.1000. This low minimum deposit eliminates the need for you to wait until you start an FD, and gives you fixed returns.
Flexible payout options
You are free to choose the tenor of maturity for your FDs as per your convenience. Starting from 7-day FD maturity plans to investments with a 60 months’ maturity, you can decide the tenor for your investment as per your convenience. Moreover, you can also benefit from a regular income by choosing the non-cumulative FD variant.
Here you can also choose the payout frequency from monthly, quarterly, semi-annual, and annual options. During your retirement years, getting access to regular earnings will help you take care of your recurring requirements. Alternatively, if you are keen on accessing the interest along with your invested sum on maturity then invest in a cumulative FD. You can ladder your FD investments based on your long-term and short-term needs so that you have enough funds at your disposal when you need it.
Easy application and management process
You can now apply for and manage your FD investment from the comfort of your home. With easy online application and doorstep pickup of documents, investing in an FD is convenient. Additionally, you can use tools such as the FD calculator to compute the maturity value on your investment in advance based on the FD interest rate you are offered. This way you can forecast your exact earnings and plan your finances better.
Your fixed deposit investment will not only help you build wealth safety but will also work as a financial backup for emergencies in your golden years. So, make the most of the present FD interest rate hike to park a sufficient amount in this reliable avenue.