Five reasons why investing in Fixed Deposit is a smart option for senior citizens

Updated: Jan 20, 2020, 17:59 IST | Partnered Content |

Whether you're looking for safety of investment to getting guaranteed returns, a fixed deposit is a rewarding choice for your retirement

Retirement is often perceived as the end of your working years, but it doesn’t mean that you cannot have a regular source of income. You can still choose to live your golden years with a regular source of income, without depleting your retirement savings. For those nearing retirement, safeguarding the wealth they’ve accumulated throughout their career is a prerequisite.

For those looking to grow their savings easily, and for safeguarding their accumulated retirement savings, investing in a fixed deposit is the best choice. Whether you’re looking for safety of investment to getting guaranteed returns, a fixed deposit is a rewarding choice for your retirement. This is why most investors approaching retirement or those who are retired invest in this low-risk option to safeguard their wealth.

Take a closer look at what makes this instrument ideal for your needs as a senior citizen.

 1.      Higher returns for senior citizens

While issuers like Baja Finance offer lucrative returns of up to 8.10% for new customers, senior citizens can look to get 0.25% higher returns on their investment. Whether you’re investing for your parents, or preparing for your own retirement, you can consider investing in a Bajaj Finance FD, which offers lucrative returns of up to 8.35%, if you invest for 36 months or more.

To understand how varied tenors will alter your returns, look at this calculation for senior citizens.

Deposit (Rs.)

Tenor (Yrs.)

Interest rate (%)

Interest payout (Rs.)

Maturity proceeds (Rs.)

20,00,000

2

8.15

3,39,284

23,39,284

20,00,000

3

8.35

5,43,998

25,43,998

 You can also opt for the auto-renewal facility at the time of applying for an FD. This way, your maturity proceeds will be reinvested. Thanks to this, your returns will multiply. On choosing the auto-renewal facility, Bajaj Finance offers an additional interest rate of 0.10% on the prevailing rates.

 2.      Meet your recurring and non-recurring expenses easily

Besides meeting your daily expenses, as a retiree, you may have other non-recurring expenses and goals to achieve. For instance, you may want to gift a property to your children, host a wedding, throw a grand party, make a prepayment of your home loan and so on. To conveniently pay for each need, you can ladder your FDs over varying tenors and align them to different goals. This way you will always have funds at your disposal to tackle your needs on time.

With Senior Citizen Fixed Deposit by Bajaj Finance, you can choose tenors ranging from 12 to 60 months. Besides, you can also choose from various regular payout options like monthly, quarterly, semi-annually and annually, as per your choice. To meet monthly expenses, you can invest in an FD and choose the monthly payout option, whereas to meet non-recurring expenses, you can invest in an FD payable at maturity.

 3.      Avail a loan in emergencies

Emergencies can show up anytime in your life. As a senior citizen, this may most often take the form of medical treatments. To aid you in such times, Bajaj Finance lets you pledge your FD as collateral and avail a loan against it. You can apply for this loan online and access a sanction of up to Rs. 4 lakh almost instantly! This way, you can address your emergency without breaking your investment and keep earning interest on it until maturity.

 4.      Get guaranteed returns on your investment

Unlike equities and most other investments, fixed deposits are not linked to the market. This means your interest rate will remain unchanged throughout the tenor and so your returns are assured. Besides, you can also determine your returns beforehand using the FD calculator and plan your finances accordingly.

 5.      Invest easily

Unlike other investments, you can invest in a fixed deposit without any hassle. All you have to do is fill in and submit an application form and make the payment. With Bajaj Finance, you can also open an FD online from the comfort of your home. Alternatively, you can visit your nearest branch and invest using your debit card. If you wish to invest in several FDs at once, you can do so by opting for the multi-deposit facility. Here, you can invest in up to 5 FDs using a single cheque and still choose a different amount and tenor for each unique scheme.

 Monitoring your FD is also as simple. In fact, as the FD interest remains unchanged throughout the tenor, you don’t really have to monitor the performance but keep an eye on its maturity. Some issuers like Bajaj Finance also offer auto-renewal facility. Thanks to this facility your maturity proceeds are automatically reinvested when the tenor ends. You can also avail doorstep services, or invest in Bajaj Finance online FD, to ensure a hassle-free investment experience.

 So, as a senior citizen you can invest in fixed deposits to safeguard your capital, earn guaranteed returns and keep your worries at bay. With the Bajaj Finance Fixed Deposit, you can rely on the high stability rating of FAAA and MAAA by CRISIL and ICRA, respectively to secure your sunset years by assuming no risk at all.

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

Sign up for all the latest news, top galleries and trending videos from Mid-day.com

Subscribe
NEXT STORY
This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK