Fixed deposit is one of the best investment options for senior citizens as it provides safety of the invested capital. Also, seniors can use FDs as an income source by investing in non-cumulative FDs which provide periodic returns.
Senior citizens also get a higher FD rate than regular citizens. This helps them to take care of their present and future finances in a better way. However, they might not be too keen on investing in bank FDs as the bank FD rates have seen a downward trend this year.
Corporate FDs like Bajaj Finance FD can be a good option in this situation as it not only provides interest rates up to 6.85% but also enables you to pick a flexible tenor ranging from 12 to 60 months. The other benefits of investing in this FD are given below:
A higher FD rate
Bajaj Finance offers an additional 0.25% fixed deposit rates for senior citizens. This higher FD rate helps them to earn better returns at maturity.
As a senior citizen, you can also opt for monthly, quarterly, six-monthly, and annual interest payouts by depositing your savings in a non-cumulative FD. The periodic interest payout options coupled with the higher FD interest rate will help you meet your household expenses and responsibilities.
Easy investment procedure
You don’t have to collect a large corpus to invest in an FD now as you can invest in a Bajaj Finance FD with just Rs. 25000. The provision of an online FD form and cKYC process that enables you to get your documents verified online makes it a convenient option for everyone.
This end-to-end online procedure is especially helpful for those who do not prefer to visit the branch office for completing the necessary formalities.
Simple withdrawal policy
A good thing about this FD scheme is that it provides lenient withdrawal policies. Therefore, you can withdraw your FDs easily if you need funds urgently. You can also apply for a loan against your term deposit plan as 75% of the FD value is offered as a loan.
It means that you don’t have to disturb your deposits in any way in case you face a financial crisis or emergency. This makes it a true contingency fund as your FDs are always at your disposal.
FDs are better than market-linked instruments like mutual funds, stocks, etc. because they are safe and grow your deposits at a fixed rate. Bajaj Finance FD has received MAAA/stable rating from ICRA and FAAA/stable rating from CRISIL. These are the highest ratings that these credit rating agencies offer. Therefore, your savings are totally safe.
Assists your financial plans
Life after retirement needs financial planning as you don’t have a stable income source and want to make the best of whatever you have saved till then. Therefore, you will have to invest smartly to ensure better returns from an FD.
You can split your funds and invest them in multiple FDs to ensure that your short term financial needs and long term goals get fulfilled. This technique is called laddering deposits and it provides more liquidity and balances the fluctuating interest rates.
The multi-deposit facility from Bajaj Finance lets you do that seamlessly as you need to submit only one cheque to invest in FDs of different tenors and types.
The FD calculator that is available on its official website lets you compare the returns of both cumulative and non-cumulative fixed deposits simultaneously. These features enable you to plan your finances smartly and receive various benefits from laddering your deposits.